State Farm ceases all home insurance underwriting in California

State Farm General Insurance halted the underwriting of new home insurance policies in California on 27 May 2023. This decision applies to both businesses and individuals.

The suspension follows the historic rise in construction costs, the Californian State's high exposure to natural catastrophe risks, and the tight reinsurance market conditions.

The American insurer believes that these measures are crucial to improving the company's financial strength.