California property owners hoping to open new insurance policies are no longer able to do so with one of the nation's largest homeowner insurance companies.

Allstate, the state's fourth-largest property and casualty insurance provider, has stopped selling new home, condominium or commercial insurance policies in California, the company said in an emailed statement. It is the latest insurance giant to say it will no longer offer coverage, citing worsening climate and higher building costs that have made it harder to do business in the nation's most-populous state.

California's largest homeowner insurance provider, State Farm, made a similar decision last week, pointing to "rapidly growing catastrophe exposure." Allstate stopped accepting new policies in the state last year, according to the statement.

"We paused new homeowners, condo and commercial insurance policies in California last year so we can continue to protect current customers," the Allstate statement said. "The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes and higher reinsurance premiums."

The news was earlier reported by The San Francisco Chronicle and in industry publications.

Allstate's decision in California follows a pattern seen across the United States in which insurance companies are raising rates, restricting coverage or ending business altogether in areas vulnerable to climate change and natural disasters. In Florida, most large insurance companies have pulled out of the state, with homeowners relying on smaller private companies, whose resources are being stretched, to protect their homes in the face of severe storms that have become typical.

moar

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Before too long, the state will step up to offer insurance to the masses...



...

Is there some kind of rate caps or something like that in CA?

Leave it to The NY Times to lie about storms becoming more severe or frequent.

CA will continue to double down on utter insanity. They can't help themselves. It is their mental illness.

Fuk em

How could there not be? It’s California.


ETA:  https://www.insurance.ca.gov/01-consumers/105-type/95-guides/03-res/res-ins-guide.cfm

Yes the Commies must approve the rates charged.

Yes, and the state froze rates all through covid while prices mooned.

Yes. It's CLIMATE CHANGE that is making it so difficult to insure homes in California.

State Farm did, too.

My thread on that: https://www.ar15.com/forums/general/State-Farm-to-stop-insuring-new-homes-in-California/5-2647918/

Perfect.

I think I hate him more than Prickster. He's just so greasy looking.

Probably true.  Will they call it the Affordable Insurance Act?

FIFY

Allstate..."We will double fist you when the time comes".

Buyer beware...

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That explains why company are pulling out of CA then. I wonder what company will be next?

They should stay in CA losing money?