Interstate 5 freeway in California. Credit: jdoms/Adobe Stock In a consumer alert, the California Department of Insurance reinforced that State Farm’s decision only affects potential new customers, as the insurer is not taking non-renewal actions at this time. The company also continues to write personal auto policies in California. (Credit: jdoms/Adobe Stock)

“This is temporary,” is the message from the California Department of Insurance (CDI) as it attempted to assuage policyholder fears following news that State Farm, the largest home insurer in California (and the U.S.), would stop accepting new home insurance applications in the state.

State Farm, which has 20% of the California home insurance market, reported its decision to stop seeking new business in California was driven by growing construction costs, increasing catastrophe exposure and a difficult reinsurance market.

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Steve Hallo

Steve Hallo is managing editor of He can be reached at [email protected].  

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