State Farm, California's largest insurer, has requested a 22% emergency rate increase for homeowner policies citing the devastating financial impact of recent wildfires. The company has already paid out over $1 billion in claims and anticipates significantly higher costs.
State Farm , California 's largest insurer, filed a request with the state Monday for an emergency 22% rate hike for homeowner policies, calling the increase essential to stave off a "dire situation" for customers and the insurance industry in the state.In the wake of the LA wildfires, State Farm officials said the company has already received more than 8,700 claims and has paid out more than $1 billion.
State Farm announced in May 2023 that it would stop writing new policies in California, and the following year it said it would not renew 72,000 existing policies, including 29,000 homeowner policies. The company recently said, however, that it would be offering renewals to wildfire-impacted homeowners."The high concentrations of risk covered by in the fire footprint will generate a direct loss many times larger than the company's pre-event surplus," Krause wrote.
Wildfires Insurance Rate Hikes State Farm California
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