Cali haters are going to love this. They will point to it as yet another reason why we poor suckers who live in California are trapped in the Golden State and should immediately pack up for Texas, Florida, Idaho, or anywhere but here. State Farm Insurance will no longer write new policies for homeowners in California, citing wildfire risk and skyrocketing construction costs.
Oh, yeah, well, I have one question for State Farm; what if Patrick Mahomes gets traded to the Rams or Chargers? Are you saying you won’t take care of him?
Since the Chiefs’ QB has a $50 million per year contract for the next decade, they won’t have to worry about it. State Farm cut the state off as of May 27 for everyone else in California, but only on new home insurance policies. Policies already in place are not affected.
The reason State Farm made this move is that over the past five years, there have been an average of over 7,000 wildfires per year. These fires burn on avert over 2 million acres. This is information that comes from the governor’s office. Much of the blame from politicians in California is directed at climate change, but in reality, the problem is much more complex. Cyclical droughts have something to do with it, along with utility companies.
State Farm is the big leagues when it comes to auto and home insurance; in fact, it is the largest provider in the US.
The refusal of insurance companies to write new policies in California is becoming a trend. Last year, American Insurance Group pulled policies for multi-million dollar homes in the Golden State, partly because of wildfire concerns.
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