California Insurance Regulator Grants Conditional Approval for State Farm Rate Hike

State Farm must justify the 22% premium increase at an April hearing and agree to pause policy cancellations to stabilize its finances.

California Insurance Commissioner Ricardo Lara conditionally approved a 22% average home insurance rate hike for State Farm, subject to a public hearing on April 8.
State Farm must pause non-renewals of homeowner policies through 2025 and seek a $500 million capital infusion from its parent company to address financial instability.
The rate hike follows $7 billion in claims from recent Los Angeles wildfires, which significantly depleted the insurer’s financial surplus.
If approved, the new rates would take effect on June 1, impacting homeowners, renters, condo owners, and rental property policies with increases ranging from 15% to 38%.
Consumer Watchdog, a consumer advocacy group, opposes the hike, arguing State Farm's financial issues stem from internal mismanagement and reinsurance practices.