State Farm Seeks Emergency Rate Hike After Los Angeles Wildfires

State Farm Seeks Emergency Rate Hike After Los Angeles Wildfires

Homeowners affected by last month’s destructive Los Angeles wildfires may soon see a significant rise in insurance costs. State Farm General, California’s largest home insurer, has requested an emergency interim rate hike averaging 22%. The company cites the financial burden of the recent wildfires, which have led to more than 8,700 claims and over $1 billion in payouts to policyholders.

California already has some of the nation’s highest home insurance premiums due to wildfire risks. State Farm’s move follows its 2023 decision to stop writing new policies in California. Additionally, the company announced last year that it would not renew 30,000 homeowner policies, a process that is still ongoing.

The rate hike request now awaits approval from the state’s insurance commissioner. If granted, it could add financial strain to homeowners still recovering from the fires.