State Farm General has requested an emergency interim rate increase from California officials, citing the 'dire' financial situation they're facing following the devastating wildfires. The rate hike could average 22% for homeowners and is driven by the significant costs already incurred in claims payouts. State Farm warns that insurance will cost more in California going forward due to the increased wildfire risk.
Citing the 'dire' financial situation they're facing after the Los Angeles wildfires, State Farm General has asked California officials for an emergency interim rate increase. The rate hike could work out to an average increase of 22% for California homeowners, State Farm General revealed Monday. 'The costs of the January 2025 wildfires will further deplete capital from State Farm General.
'To protect millions of California consumers and the integrity of our residential property insurance market, the Department will respond with urgency and transparency to recommend a course of action for Commissioner Lara,' the California Department of Insurance stated. Insurance expert Karl Susman said California homeowners pay less than homeowners in most states in the country, adding that climate change and wildfire risks have not been priced into the market yet.
WILDFIRE INSURANCE RATE HIKE CALIFORNIA STATE FARM
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State Farm Seeks 22% Rate Hike Amid California Wildfire CrisisState Farm General, California's largest home insurer, has requested an emergency rate increase of 22% following the devastating impact of the Los Angeles County wildfires. The company cites the escalating costs associated with claims and payouts, emphasizing the need to rebuild its capital reserves. This request is likely to spark controversy given State Farm's previous attempts to increase rates, which raised concerns about its financial stability.
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State Farm Seeks 22% Rate Hike After California WildfiresState Farm General, California's largest insurance provider, has requested an emergency interim rate hike of 22% for homeowners, citing a 'dire' financial situation following destructive Los Angeles wildfires. The company has already received over 8,700 claims and paid over $1 billion to customers in the wake of the fires. State Farm says the rate hike is necessary to 'help avert a dire situation' for its customers and the insurance market in California.
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State Farm Seeks 22% Rate Hike After California WildfiresState Farm General, California's largest insurance provider, has requested an emergency rate hike citing financial strain from recent destructive wildfires.
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State Farm Seeks 22% Homeowner Rate Hike Amid California Wildfire CostsState 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.
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