Home insurers are pulling out of California and Florida, at what feels like alarming rates. Earlier this year, State Farm, California’s largest property insurer, announced that it would stop accepting new applications for all property and casualty insurance in the state, citing “historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.” Farmers Insurance followed, putting a cap on the number of policies it writes in the state. And Allstate, last year, announced that it would no longer write new homeowner policies in California.
In Florida, within the last month or so alone, Farmers Insurance announced that it was pulling out of the state’s market to “effectively manage risk exposure,” the company said, in a statement previously provided to Fortune. Shortly after, AAA said it would not renew a “very small percentage of higher exposure homeowner’s policies in Florida,” because of the state’s “challenging market,” according to a statement shared with Fortune previously.
