Top Insurance Company Gives Liberals Bad News (We Almost Feel Sorry For Them)

State Farm no longer accepts applications for business and residential insurance from residents of California.

The new rule went into force on May 27 but has no bearing on private auto insurance. Existing customers will continue to receive home and business insurance services from the firm. Customers may thus file claims for items already protected by insurance.

According to a press statement from State Farm, “State Farm General Insurance Corporation made this decision in response to historic rises in construction expenses outpacing inflation, quickly rising catastrophe exposure, including a challenging reinsurance market. In order to strengthen the company’s financial position, these steps must be taken immediately. We will keep reviewing our strategy in light of shifting market circumstances.”

State Farm was the biggest insurer in California in 2021, earning more than $7.2 billion in premiums, yet the business lost $4 billion.

According to the California Dept. of Insurance, insurance firms may be compelled to pay living costs for persons who are relocated in addition to paying repairs performed on personal property.

In 2021, wildfire firefighting organizations battled 7,396 fires that consumed 2,569,386 acres in California.

In the statement, it was said that “we recognize the Governor’s admin., legislators, as well as the California Dept. of Insurance (CDI) for their tireless efforts to reduce wildfire loss. We promise to collaborate positively with the CDI and decision-makers to support the development of market capacity in California. However, in order to strengthen the company’s financial position, these steps must be taken immediately.”

In California, State Farm is not the first company to discontinue house insurance coverage. According to the Washington Post, American International Group informed its 9,000 California consumers in 2022 that they wouldn’t be able to renew their house insurance.