8% CONTAINED. AND THE DEVASTATION CAUSED BY THE FIRES THIS WEEK IS PROMPTING SOME CONVERSATIONS ABOUT THE STATE OF FIRE INSURANCE HERE IN CALIFORNIA. A LOT OF PEOPLE ARE REALLY WORRIED ABOUT WHAT’S GOING TO HAPPEN WITH THIS TODAY, THE INSURANCE COMMISSIONER SAYS THAT HIS FOCUS IS ON ENSURING PEOPLE GET THE BENEFITS THAT THEY’RE ENTITLED TO. BUT AS KCRA 3’S LEE ANNE DENYER EXPLAINS, FOR US TONIGHT, FOR THOSE WHO’VE BEEN THROUGH THIS BEFORE, IT IS ONE OFTEN FULL OF CHALLENGES GETTING THAT ALERT. THAT SAID, GET OUT! AND MY MIND WENT BLANK FOR JENNIFER MCKIM HIBBARD, IT’S IMPOSSIBLE NOT TO FEEL DEEPLY FOR THE PEOPLE IMPACTED BY THE DEVASTATING FIRES BURNING IN SOUTHERN CALIFORNIA. IT JUST BRINGS BACK MEMORIES. IT’S HEARTBREAKING, PUTS US BACK IN THOSE MOMENTS WHEN WE WERE EVACUATING AND BEING TOLD THAT THE FIRE IS COMING AND TO GET OUT NOW, IT BRINGS BACK A LOT OF MEMORIES, HARD MEMORIES. SHE LOST HER GRIZZLY FLATS HOME IN 2021 TO THE CALDOR FIRE. WE WERE ONE OF THE LUCKY ONES AND WE HAD INSURANCE, BUT UNFORTUNATELY WE ONLY RECEIVED A SMALL PERCENTAGE OF WHAT WE THOUGHT WE WERE SUPPOSED TO GET. ON FRIDAY, THE HEAD OF THE DEPARTMENT OF INSURANCE TOLD FAMILIES TO FOCUS ON SAFETY AND RECOVERY, SAYING HIS PRIMARY CONCERN IS THAT POLICYHOLDERS IMPACTED BY THE PALISADES AND EATON FIRES RECEIVE HELP. I AM USING MY MORATORIUM POWER TO STOP ALL NON-RENEWALS AND CANCELLATIONS, A SPOKESPERSON FOR ALLSTATE SAYS FAMILIES SHOULD WAIT TO GO TO THEIR HOME UNTIL THEY KNOW IT’S SAFE TO START A CLAIMS PROCESS AS SOON AS POSSIBLE, AND TO DOCUMENT DAMAGES. TAKING PHOTOS OR VIDEOS OF WHAT CAN’T BE SAVED. BUT MCKIM HIBBARD CAN’T HELP BUT WORRY ABOUT THE UNINSURED. YOU KNOW, WHEN YOU’RE IN THE THICK OF IT, YOU DON’T KNOW WHAT TO DO BECAUSE NOTHING MAKES SENSE. ONE MINUTE YOU HAD A LIFE AND YOU HAD POSSESSIONS AND YOU HAD A HOUSE, AND THE NEXT MINUTE IT’S ALL GONE. SHE’S A PART OF THE WEST SLOPE FOUNDATION AND ORGANIZATION, PUSHING TO PREPARE THEIR NEIGHBORS SHOULD DISASTER STRIKE THEIR COMMUNITY. AGAIN. THIS IS WHAT WE PROVIDE TO OUR STUDENTS AND OUR PARTICIPANTS. ALL WHILE YEARS AFTER CALDOR STILL WORKING TO BRING FAMILIES BACK HOME BECAUSE SOMETHING HAS TO BE DONE, WE CANNOT CONTINUE TO BURN. FAMILIES CANNOT CONTINUE TO HAVE THEIR LIVES COMPLETELY JUST RIPPED APART. THERE HAS TO BE SOLUTIONS. IN EL DORADO COUNTY, LEE ANNE DENYER KCRA THREE NEWS. THE WEST SLOPE FOUNDATION HOSTS PREPAREDNESS WORKSHOPS TO HELP FAMILIES IN THE REGION GET READY
California Insurance Commissioner demands more answers from State Farm on proposed rate hike
Updated: 4:49 PM PST Feb 14, 2025
California’s insurance commissioner has denied State Farm’s request for an emergency rate hike — for now.On Feb. 3, State Farm submitted a request for an emergency interim rate, which would have increased costs by 22% for some homeowners. | VIDEO ABOVE | Caldor Fire victim reflects on her experience with fire insuranceInsurance Commissioner Ricardo Lara responded to the request on Friday, saying State Farm had not fully justified the need for the rate hike.”Under the strict review laid out by Proposition 103, the burden is on State Farm to show why this is needed now. State Farm has not met its burden,” Lara wrote in response to the request.Lara requested that the insurance company answer to a few key issues:Financial stability: Why has the company’s financial position deteriorated despite previous rate increases, and what other steps—beyond raising rates—has the company taken to restore stability?Justification: What has changed since State Farm’s last rate filings that now requires urgent relief?Consumer impact: How would granting this request affect policyholders, especially those who have already faced premium increases and non-renewals?Transparency: Has State Farm provided adequate documentation to justify its claims, and is it considering financial support from its parent company?Lara also noted the impact of wildfires on California, and how that’s fueled the home insurance crisis. Read more about the home insurance crisis in California here. “Despite multiple approved rate changes, State Farm has stopped writing new policies in California and non-renewed thousands of existing policies, raising serious questions about its financial situation,” the California Department of Insurance shared in a news release.See where State Farm has dropped home insurance in California on this map. Lara did not fully reject State Farm’s request outright, but ordered the insurance company, the state department of insurance and the consumer watchdog to appear at an in-person meeting in Oakland, so the company could answer to the issues outlined. The meeting is set for Feb. 26.Read Lara’s full letter here. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
California’s insurance commissioner has denied State Farm’s request for an emergency rate hike — for now.
On Feb. 3, State Farm submitted a request for an emergency interim rate, which would have increased costs by 22% for some homeowners.
| VIDEO ABOVE | Caldor Fire victim reflects on her experience with fire insurance
Insurance Commissioner Ricardo Lara responded to the request on Friday, saying State Farm had not fully justified the need for the rate hike.
“Under the strict review laid out by Proposition 103, the burden is on State Farm to show why this is needed now. State Farm has not met its burden,” Lara wrote in response to the request.
Lara requested that the insurance company answer to a few key issues:
- Financial stability: Why has the company’s financial position deteriorated despite previous rate increases, and what other steps—beyond raising rates—has the company taken to restore stability?
- Justification: What has changed since State Farm’s last rate filings that now requires urgent relief?
- Consumer impact: How would granting this request affect policyholders, especially those who have already faced premium increases and non-renewals?
- Transparency: Has State Farm provided adequate documentation to justify its claims, and is it considering financial support from its parent company?
Lara also noted the impact of wildfires on California, and how that’s fueled the home insurance crisis. Read more about the home insurance crisis in California here.
“Despite multiple approved rate changes, State Farm has stopped writing new policies in California and non-renewed thousands of existing policies, raising serious questions about its financial situation,” the California Department of Insurance shared in a news release.
See where State Farm has dropped home insurance in California on this map.
Lara did not fully reject State Farm’s request outright, but ordered the insurance company, the state department of insurance and the consumer watchdog to appear at an in-person meeting in Oakland, so the company could answer to the issues outlined. The meeting is set for Feb. 26.
Read Lara’s full letter here.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.