Yet another major national insurance provider will no longer be selling insurance policies to new homeowners in the state of California amid rising costs and increasing risks of wildfires, leaving property owners and renters with limited options.
Farmers Insurance, the state’s second-largest homeowners carrier, placed a cap on the number of new homeowners policies starting on July 3, a spokesperson for the insurer confirmed in a statement to the San Francisco Standard.
The company cited increased costs amid inflation and “severe weather events” such as wildfires as reasoning for the move.
“With record-breaking inflation, severe weather events, and reconstruction costs continuing to climb, we are focused on serving our customers while effectively managing our business,” the insurance company said. “Effective July 3, Farmers will limit new homeowners insurance policies in California to a level consistent with the volume we projected to write each month before recent market changes.”…