State Farm is closing its doors to millions of new customers exposed to ‘rapidly growing’ catastrophes

 The EPA reports that wildfires are getting worse as the planet gets warmer. In response to this and other factors, major insurer State Farm has announced that it will no longer offer homeowner’s insurance to new applicants in fire-prone California.

What’s happening?

According to the EPA, the area burned by wildfires each year has been increasing since the 1980s. The 10 most destructive years on record have happened in the past 20 years, causing more damage thanks to the plentiful dry plants left behind by drought.

While the effects are felt across the U.S., California is famous for its yearly wildfires and the resulting smoke. This year has been particularly hard for the state due to a devastating combination of storms, floods, drought, and fire.

As Axios reports, this became too much risk for State Farm. The company cited “historic increases in construction costs outpacing inflation” and “rapidly growing catastrophe exposure” in its decision to close applications across California in May.