State Farm Halts Home Insurance Sales in California Due to Wildfire Risk

State Farm will no longer accept new applications for homeowners and business insurance in California due to wildfire risks and the cost of rebuilding. Existing customers will not be affected, and the company will continue to offer auto insurance in the state. The insurance agency cited "historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market" for its decision. The state's FAIR Plan provides basic fire insurance coverage for high-risk properties when traditional insurance companies will not, but that plan is the last resort.