State Farm ceasing new applications in California for property insurance, other policies [Video]

The State Farm General Insurance Company will no longer accept new applications for property insurance and other policies in California, citing “historic” increases in construction costs and inflation,” the company said Friday. 

Beginning Saturday, the Illinois-based insurance group will cease to accept applications for business and personal lines property and casualty insurance. The move doesn’t impact personal vehicle insurance. 

REPUBLICANS PROVE BIDEN ADMIN’S CLIMATE OVERREACH INTO CONSUMER INSURANCE

“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 in a release. “The Department of Insurance is focused on the safety of our homes and communities.”

The insurance company said actions are necessary to improve its financial strength. State Farm agents in California will continue to serve existing customers, it said. 

A spokesperson for the California Department of Insurance told Fox Business it is committed to protecting customers.

“The factors driving State Farm’s …