State Farm is no longer accepting property insurance applications in California

Insurance giant State Farm is no longer accepting new applications for business or personal property coverage in California.

“We take seriously our responsibility to manage risk,” the company said in a statement posted to its website Friday. “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.”

Automobile insurance is not affected by the change, which took effect Saturday.

The company was the state’s largest provider of property and casualty insurance as of 2021, the...