Another major insurance company — Farmer’s — will stop providing many insurance policies in California, joining an exodus of insurers from the state.
The San Francisco Chronicle reported Monday:
Farmers Direct Property and Casualty Insurance Company will withdraw from all insurance programs offered in California, including home, auto and renters policies. Most of the policyholders with Farmers Direct will get “soft-landing offers,” which will resemble renewals in another Farmers company, according to Michael Soller, deputy insurance commissioner. He estimates there will be only about 2,800 Farmers Direct policyholders who may not get an offer.
In July, Farmers Insurance capped the number of policies it would write each month due to “record-breaking inflation, severe weather events, and reconstruction costs continuing to climb,” according to the company. It made a similar move in Florida, another coastal state heavily impacted by severe weather.
As Breitbart News reported earlier this year, Allstate and State Farm have also stopped issuing new home insurance policies, largely because of rising construction costs and the refusal of state regulators to allow them to price premiums according to future risk, not just past risk.