Count in State Farm homeowners insurance on the mass exodus from Democrat-run California.
State Farm General Insurance Company will no longer be accepting new applications including all business and personal lines of property and casualty insurance as of Saturday, the company announced Friday.
State Farm auto insurance will not be impacted in California, but the company says it decided to get out of the state "due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market."
The company mentioned the Democrat governance in the state, including Democrat Gov. Gavin Newsom.
"We take seriously our responsibility to manage risk," State Farm wrote in a statement. "We recognize the governor's administration, legislators, and the California Department of Insurance (CDI) for their wildfire loss mitigation efforts. We pledge to work constructively with the CDI and policymakers to help build market capacity in California.
"However, it's necessary to take these actions now to improve the company's financial strength. We will continue to evaluate our approach based on changing market conditions. State Farm independent contractor agents licensed and authorized in California will continue to serve existing customers for these products and new customers for products not impacted by this decision."
While auto insurance is not been fully pulled from the state, the company did have to put a $264 million rate increase in the state earlier this year, the L.A. Times reported.
Twitter CEO Elon Musk has moved Tesla from California to Texas and has been rumored to be considering moving Twitter out of the state amid unsafe streets, high taxes, and unfavorable economic conditions.
Eric Mack ✉
Eric Mack has been a writer and editor at Newsmax since 2016. He is a 1998 Syracuse University journalism graduate and a New York Press Association award-winning writer.
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