State Farm No Longer Accepting New Applications for Home and Business Insurance in California

State Farm General Insurance Company announced Friday that it will no longer accept new applications for home and business insurance in California. The policy change took effect Saturday and includes all business and personal lines property and casualty insurance.

In a statement, the insurance company said the decision was due to “historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.”

State Farm said the policy change will not impact its personal auto insurance policies. The company also noted that the policy change is not a reflection of the quality of its products or services.

The new policy change comes as the insurance industry is facing a challenging reinsurance market and an increase in catastrophic events. Construction costs have also been rising faster than inflation, making it difficult for the company to keep up with the rising costs.

State Farm said it is committed to providing its customers with the best possible service and will continue to review its policies and procedures to ensure it is meeting the needs of its customers.