State Farm Halts New Home Insurance Policies in Third-World California

Casimiro PT /
Casimiro PT /

California’s years of mismanagement at the hands of the Democrat supermajority in the legislature is making the state more unlivable by the day. Effective immediately, one of the largest insurance companies in the US says it will no longer be offering new policies for homeowner’s insurance. State Farm says existing policies will be grandfathered in for now, but otherwise, the company is pulling back from doing business in California.

The company issued a bland statement about why it will no longer be issuing new homeowner policies in California:

“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.”

They’re being much too polite. Construction costs in California have outpaced inflation, but there are a bunch of reasons that rhyme with “Joe Biden” for that. Bidenflation is crippling every industry. Anyone who has had to buy materials at Home Depot ever since Biden took office could tell you that costs are skyrocketing. But why would that cause State Farm to not want to issue new homeowner policies?

The truth is that homes and property in California are much more likely to be looted, vandalized, destroyed or burned to the ground than in other states. The state has catastrophic wildfires every single summer. The federal government mismanages forests and doesn’t allow logging to thin out dead, old growth—the sorts of trees that like to catch fire.

Meanwhile, California’s environmentalist wacko rules prevent the electric companies from upgrading their infrastructure. Then, when a dead federal tree falls on an aging transformer in the woods and it starts a wildfire and burns 50 homes down, California’s government blames the electric companies and fines them. The cost of the fines, of course, gets passed on to people who need electricity for their homes. The cost of electricity has gone up about 40% in the past two years in California.

Wildfires that take out small towns are obviously very rough on insurance companies. They’re trying to insure against the rare exceptions, like houses burning down, rather than trying to insure things that are much more certain to happen. There’s a reason why you can’t get an insurance policy to cover things like a flat tire. Everybody gets flat tires, so it would be idiotic for a company to try to insure those. Insurance companies’ business model depends on most homes not burning to the ground.

California has also legalized serial looting. Packs of feral “youths” run into a store and steal everything in sight, and the cops have to just sit there and watch it happen. Anytime that happens, the store owner turns in an insurance claim. That drives up the cost of insuring business properties in California. Plus, every time BLM and Blamtifa get worked up over cops doing their jobs, they burn small businesses to the ground.

So, now we can add State Farm to one of the companies that has one foot out the door in California. If you try to explain the reasons why to the retards in the California legislature, they’re likely to give you a blank stare. They don’t understand even basic concepts of economics.

The legislature is now trying to raise the minimum wage for fast food workers to more than $20 an hour, with annual raises tied to inflation. It already costs $60 for a family of four to eat at a McDonald’s in California. The company CEO says he’ll pull every franchise out of California. Can you imagine a US state with zero McDonald’s restaurants in it?

That’s what leftism gets you. No insurance—or at least no insurance at a reasonable price, no stores to shop in, and nowhere to buy food. What’s the endgame here? Do they want people to just start eating each other?