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4mo ago

State Farm Pursues Additional Rate Hikes After Emergency Increase in California

The insurer seeks an 11% homeowners rate hike, plus steep increases for condos and renters, following a 17% interim approval tied to wildfire claims.

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.
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Overview

  • State Farm has formally requested an 11% homeowners insurance rate increase to restore its original 30% hike proposal following last week's approval of a 17% interim increase.
  • The company is also seeking significant rate hikes for condos (36%) and renters (52%) after already-approved increases of 15% for both groups take effect in June.
  • California's Department of Insurance has scheduled a public hearing in October to review State Farm's requests and determine whether the additional hikes are justified.
  • State Farm states that the increases are necessary to address financial strain from $7.6 billion in wildfire claims, though most of these losses are covered by its parent company through reinsurance.
  • Consumer advocates and regulators emphasize the need for transparency and data to ensure rate hikes are justified, with potential refunds if rates are deemed excessive.