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2d ago

State Farm Seeks Additional Rate Hikes After Emergency 17% Increase in California

The insurer requests an extra 11% for homeowners, along with steep increases for renters and condo owners, as wildfire losses strain its financial stability.

Palisades fire Cal Fire (Joel Pollak : Breitbart News)
State Farm, California's largest home insurer, just got approved for a 17% homeowners rate hike, granted on an emergency basis after the Los Angeles wildfires. Now it wants another 11% jump.
Anna Schlobohm de Cruder (C) and Daniel Cruder search through the remains of Anna's home which was destroyed in the Eaton Fire on March 20, 2025, in Altadena, California.
Some 1,600 insurance policies for Pacific Palisades homes were dropped by State Farm in July, six months before fires wiped out much of the community. Above, Pacific Palisades, on Feb. 5, 2025. (AP Photo/Jae C. Hong, File)

Overview

  • State Farm has filed for an 11% homeowners' rate increase, adding to the 17% emergency hike approved last week, which takes effect June 1, 2025.
  • The company is also seeking significant rate hikes of 36% for condo owners and 52% for renters, citing financial strain from wildfire claims.
  • California Insurance Commissioner Ricardo Lara has scheduled a full rate hearing for the fall, where State Farm must justify its requests or face potential refunds if rates are deemed excessive.
  • State Farm attributes its requests to $7.6 billion in claims from the Eaton and Palisades wildfires, most of which are covered by reinsurance agreements.
  • Regulators and consumer advocates emphasize the need for transparency and data to balance insurer solvency with consumer protection in California's strained insurance market.