State Farm no longer selling new home insurance policies in California
State Farm's new policy hurts prospective homeowners
The move affects casualty and business property insurance, but not auto insurance. If state farm is willing to stop writing policies in California, could the same approach happen here; including flood prone Long Island, the outer boros like Queens, Hoboken, NJ and even Bergen County New Jersey?
It's no secret, it's expensive to own a home in California, but a move by the insurance company State Farm just made it even more so for existing homeowners, and it may have shut out some new homebuyers entirely.
State Farm has decided it will no longer write new policies for prospective homeowners in California.
The company says the decision was necessary to improve its financial strength due to:
Rapidly growing catastrophe exposure
Historic increases in construction costs outpacing inflation
A challenging reinsurance market
The move affects casualty and business property insurance, but not auto insurance.
This begs the question: If State Farm is willing to stop writing policies in California, could the same approach happen in New York?
Could flood-prone areas like Long Island, the outer boroughs like Queens, and even parts of New Jersey like Hoboken and Bergen County become uninsurable?
In Florida, homeowners are struggling to buy coverage too. Most big insurers have exited the state, leaving only smaller, private companies to write new policies. In parts of storm-ravaged eastern Kentucky, flood insurance prices are quadruple what they were just a few years ago.
It is a market in crisis, in a country seemingly on the brink of a crisis.