Climate risks: two insurers halt home insurance coverage in California

The two American insurance giants, State Farm and AllState, recently joined by AIG, have decided to stop underwriting new home insurance policies in California.

Common reasons cited by both insurers include California homes' high exposure to natural catastrophe risks, and the soaring construction and repair costs.

Over the past few years, the State of California has witnessed a number of unprecedented natural disasters, the most destructive being forest fires and floods.