California's Home Insurance Market Takes a Hit as Insurers Halt New Policies Amid Wildfire Risks

State Farm, California's largest property insurer, has stopped issuing new home, business, and casualty insurance policies in the state due to wildfire risks and rising construction costs. The company will still issue auto insurance in California. The state has suffered increasingly massive and destructive wildfires in recent years, leading to scarcer and more expensive insurance policies in wildfire-prone zones. California has banned insurance companies from dropping homeowners in certain ZIP codes and issuing non-renewals for policies following wildfire emergency declarations.