State farm insurance ends homeowner insurance in California

In an incredible move that drives the economic impact of climate change home, State Farm insurance has decided to end new homeowners insurance in California due to wildfires and the cost of rebuilding. This won’t be the last time this happens. But this has been a long time coming, and we all know that the insurance industry is the real driver behind climate change policy in this country. State Farm is the second large insurer to end coverage in California. AIG ended coverage last year.

One Response

  1. Yes, this has been a long time time coming. Or short time. Since the megafires of Santa Rosa (2017) and Paradise (2018) burned 5,000 and 18,000 structures respectively, fire insurance in California has become like flood insurance — too much for one company to bear at once, and thus a classic market failure where the govt must step in – or force people to move. (Prediction: Placerville is next.) I’m assuming no one is offering a 30-yr mortgage for low-bank homes in Puget Sound, though this does not effect entire towns and a wide economic range like it does with the towns in California.

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