Bloomington, Ill. ? Losses in State Farm Insurance Co.’s home insurance business have prompted the company to limit or even halt the sale of new homeowner policies in more than 20 states, including Kansas, where storms and other problems have caused claims to soar.

Customers in those states who already have homeowner policies with State Farm will not be affected, the company said. Officials say State Farm, the nation’s largest home insurer, has policies on more than 15 million homes nationwide.

State Farm Insurance will not be accepting new homeowner policies in Kansas until it can return to profitability. Dennis Garrison, one of six State Farm agents in Lawrence, works Thursday at his office at 543 Lawrence Ave.

Phil Supple, spokesman for the Bloomington-based company, said Thursday that catastrophes and other factors have caused a significant increase in the number of claims. Coupled with the rising cost of repairs, inadequate premiums and reduced investment income, he said, losses have created an environment that discourages taking on new clients.

State Farm reported a $5 billion net loss in 2001. Analysts say the company is following a trend by cutting growth in what has been an unprofitable market within the industry.

Supple said regulators in effected states have been notified. Decisions on refusing or curtailing new business are being made at the company’s 13 regional offices and the cutbacks are temporary, he added.

“We certainly will be revisiting all of these decisions and return to the marketplace when the business environment and our results allows us,” he said.

Bob Hartwig, chief economist for the Insurance Information Institute, said nationwide claims on homeowner policies last year resulted in insurers paying out $8.9 billion more than they received in premiums, second only to the $11.5 billion deficit on homeowner policies insurance companies absorbed when Hurricane Andrew hit in 1992.

State Farm is no longer issuing homeowner policies for new customers in Arkansas, Kansas, Louisiana, Missouri, Oklahoma, Texas, California, Montana, Oregon, Washington, Idaho, Hawaii, Alaska, Maryland, West Virginia and coastal North Carolina.

State Farm has also limited new policies in Arizona, New Mexico, Colorado, Utah, Nevada and Wyoming.