State Farm General Insurance Company recently announced that it will
no longer accept new applications for property insurance and other policies in California,
citing "historic" increases in construction costs and inflation. The Illinois-based
State Farm Insurance group will cease to accept applications for business and
personal lines property and casualty insurance.
The company released a statement reading: "State Farm
General Insurance Company made this decision due to historic increases in
construction costs outpacing inflation, rapidly growing catastrophe exposure,
and a challenging reinsurance market.”
The company said actions were necessary to improve its
financial strength, while vowing that California State Farm agents will
continue to serve existing customers.
A (likely chagrinned) spokesperson for the California Department
of Insurance told Fox Business News: "The factors driving State Farm’s decision are
beyond our control, including climate
change, reinsurance costs affecting the entire insurance industry, and global
inflation.”
If California’s powers-that-be truly believe all the factors are
“beyond their control,” they are even more pathetic than I thought. That’s complete bunk. State Farm
didn’t announce that it would no longer write property (and other) policies in any
other state, did it, spokesperson? Just a coincidence? Is ”global”
inflation not affecting Arizona, Nevada, Idaho, etc.?
Truth is, the state’s one-party
government has enacted a myriad of policies that have caused home prices and construction
costs to skyrocket over the years. California has virtually eliminated the
middle class. Only the very wealthy and the homeless are left. The erstwhile
Land of Milk and Honey now has the highest poverty rate of any state in the nation. Homeless shelters are
ubiquitous. Tent cities litter the landscape. Neither State Farm nor other
carriers offer home insurance on portable tents. Moreover, California has historically
refused to pro-actively selectively burn dead trees and underbrush that have
led to forest fires. Nor has it taken any truly effective action to prevent
mudslides and other disasters. The Golden State is no more.
So,
Californians, if you seek home insurance-- unlike your neighbor, State Farm
isn’t there.
No comments:
Post a Comment