ECONOMIC LOSS SINCE THE JANUARY FIRES, AND STATE FARM IS ASNG THE STATE OF CALIFORNIA IF IT CAN TEMPORARILY, TEMPORARILY RAISE ITS HOMEOWNER INSURANCE RATES BY 22%. THE COMPANY SAYS IT NEEDS THE RATE INCREASE BECAUSE CLAIMS FOR THE LOS ANGELES WILDFIRES ARE HURTING ITS FINANCES. REPRESENTATIVES WITH STATE FARM MET BEHIND CLOSED DOORS IN OAKLAND YESTERDAY, WITH CALIFORNIA INSURANCE COMMISSIONER RICARDO LARA. AFTER THAT MEETING, LARA SAID THAT THE PUBLIC WILL KNOW IN TWO WEEKS WHETHER A TEMPORARY HIKE WILL TAKE EFFECT. THE 22% RATE HIKE WOULD IMPACT ABOUT 1 MILLION PEOPLE. IN A LETTER TO THE STATE AGENCY, STATE FARM SAID IT HAS ALREADY PAID OUT MORE THAN $1 BILLION FOR JUST A FEW THOUSAND CLAIMS. STATE FARM SAYS IT WILL EVENTUALLY PAY OUT 7.6 BILLION. RIGHT NOW, T
California insurance commissioner meets with State Farm about emergency rate hike
Updated: 7:59 PM PST Feb 27, 2025
California’s insurance commissioner met with representatives for State Farm Wednesday in Oakland to talk about why the company has requested an emergency rate hike following the Los Angeles County wildfires.State Farm asked for the hike on Feb. 3, citing the Southern California wildfires. It wants to increase homeowner policies by 22%, condo owner policies by 15%, and renters insurance policies by 38%. The company said on its website this week that it hopes to avoid a potential credit rating agency downgrade. “I want to know one that if State Farm consumers are going to be asked to pay more, that we get some guarantees that one, they are going to grow their footprint, and that they are going to stay in California,” Commissioner Ricardo Lara told reporters. Lara also said that State Farm assured him they are able to pay off claims for current fire victims and that he plans to make a decision about rates in two weeks, KTVU reported. State Farm is the largest insurer in the Golden State. State Farm said it’s already paid out $1.75 billion covering 9,500 claims related to the Southern California area fires.In May 2023, it stopped writing new policies in California, and in March 2024 it did not renew 30,000 existing homeowner policies. Those non-renewals in Los Angeles County were paused after the recent wildfires. –CNN contributed to this story.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 met with representatives for State Farm Wednesday in Oakland to talk about why the company has requested an emergency rate hike following the Los Angeles County wildfires.
State Farm asked for the hike on Feb. 3, citing the Southern California wildfires.
It wants to increase homeowner policies by 22%, condo owner policies by 15%, and renters insurance policies by 38%.
The company said on its website this week that it hopes to avoid a potential credit rating agency downgrade.
“I want to know one that if State Farm consumers are going to be asked to pay more, that we get some guarantees that one, they are going to grow their footprint, and that they are going to stay in California,” Commissioner Ricardo Lara told reporters.
Lara also said that State Farm assured him they are able to pay off claims for current fire victims and that he plans to make a decision about rates in two weeks, KTVU reported.
State Farm is the largest insurer in the Golden State.
State Farm said it’s already paid out $1.75 billion covering 9,500 claims related to the Southern California area fires.
In May 2023, it stopped writing new policies in California, and in March 2024 it did not renew 30,000 existing homeowner policies.
Those non-renewals in Los Angeles County were paused after the recent wildfires.
–CNN contributed to this story.
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.