KEY POINTS
  • State Farm General Insurance Company on Friday announced that it will stop accepting new homeowners insurance applications in California.
  • The company cited "rapidly growing" catastrophe risks like wildfires, "historic increases" in construction costs and a challenging reinsurance market.
  • "We take seriously our responsibility to manage risk," the company said in a release.
A private wild land firefighter monitors a backfire along Old Lawley Toll Road during the Glass Fire in Calistoga, California, U.S., October 2, 2020. Picture taken October 2, 2020.

State Farm General Insurance Company on Friday announced that it will stop accepting new homeowners insurance applications in California, citing "rapidly growing" catastrophe risks like wildfires, "historic increases" in construction costs and a challenging reinsurance market.

"We take seriously our responsibility to manage risk," the company said in a release.