Major Insurers Pull Out of California

The land of fruit and nuts continues to be dealt some serious blows.  The rising costs will no doubt force even more people to leave the Golden State.  That’s likely sad news for the rest of us because the Californians move to Montana, Texas, Idaho, Colorado and even the Black Hills of South Dakota, and end up pushing for the same liberal crap/policies that has ruined their home state.  They turned CO blue.  And if they turn other red states blue and gain 2 senators from every state they flip, it may be impossible for conservatives to get a say in anything as far as governing goes.

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Faltering California took another economic hit on Friday, as America's largest personal lines insurer said it would immediately stop selling new home insurance policies in the state. California is the largest property and casualty insurance market in the country. 

State Farm attributed the decision to three factors: "historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market." Reinsurance is a method of transferring some of an insurer's risk to other insurers.  

Existing policies will stay in effect -- for now. There's always the possibility that, if things keep deteriorating, State Farm could decide to "non-renew" current policy-holders. That's what AIG did last year, sending thousands of high-end homeowners scrambling to find new coverage.  

https://www.zerohedge.com/markets/state-farm-halts-home-insurance-sales-california

Insurance giant Allstate has stopped writing new policies for homeowners, condominiums and commercial structures, citing wildfires, higher costs of construction and higher reinsurance premiums, the SF Chronicle reports.

 https://www.zerohedge.com/political/allstate-drops-california-will-not-write-new-insurance-policies-over-wildfires