Major insurance companies exit California market causing disruption.

Two major insurance companies, State Farm and Allstate, have stopped writing new policies in California due to increasing wildfire risk and soaring construction costs. This aligns with trends across the country where companies are boosting rates, limiting coverage, or pulling out completely from regions susceptible to natural disasters in the era of climate change. California's unsettled market could make it more difficult to buy a home, and the state-run pool that serves as the insurer of last resort for many could face pressure as enrollments surge. The loss of large insurers could create more pressure to loosen consumer-minded policies that have held down rates in the state for years.