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The mass corporate exodus from California is only gaining traction, this time as a leading insurance company is now pulling out of the state.

State Farm announced over the weekend they will no longer accept new homeowner or business applications in the Golden State. That decision went into effect on Saturday.

The company says historic construction costs and catastrophe exposure, such as wildfires, made it a necessary decision for their financial strength.

Last year, there were nearly 7,500 wildfires that burned hundreds of thousands of acres and impacted almost 900 structures.

Meanwhile existing State Farm customers can breathe easy, as they will keep their home coverage.