It is becoming increasingly harder to get home insurance coverage in California. First State Farm and Allstate said they would pause on issuing new coverage to homeowners in California, and now Farmers Insurance has followed suit.
“Effective July 3, Farmers will limit new homeowners insurance policies in California to a level consistent with the volume we projected to write each month before recent market changes,” the company said in a statement.
Farmers Insurance’s decision to limit new homeowner insurance policies in California won’t impact current customers. The company attribute the new rule to record-breaking inflation, severe weather events and reconstruction costs.
Farmers made up just under 8 percent of all California property and casualty policies in 2022, according to the California Department of Insurance.
Farmers has also said it would similarly limit new home policies in Florida for the foreseeable future.