State Farm to stop accepting homeowners insurance applications in California due to wildfires, construction costs

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A backstage chaotic onshore firefighter monitors a backfire on Old Lawley Toll Road during the Glass Fire successful Calistoga, California, U.S., October 2, 2020. Picture taken October 2, 2020.

Stephen Lam | Reuters

State Farm General Insurance Company connected Friday announced that it volition halt accepting caller homeowners security applications successful California, citing "rapidly growing" catastrophe risks similar wildfires, "historic increases" successful operation costs and a challenging reinsurance market.

"We instrumentality earnestly our work to negociate risk," the institution said in a release.

State Farm said it volition halt accepting caller business, idiosyncratic lines spot and casualty security applications starting Saturday. The caller argumentation volition not interaction idiosyncratic car insurance, according to the release. State Farm's autarkic contractor agents volition besides proceed to service existing customers.

The institution said it volition enactment with the California Department of Insurance and different policymakers to amended conditions successful California, but that State Farm decided to instrumentality enactment to amended its "financial strength.

"We volition proceed to measure our attack based connected changing marketplace conditions," State Farm said.

State Farm did not instantly respond to CNBC's petition for comment.

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