California regulator mulls State Farm’s request for 22% premium hike for homeowners after LA fires
Jae C. Hong/AP An aerial view shows the devastation from the Palisades Fire on beachfront homes Wednesday, Jan. 15, 2025 in Malibu, Calif. SACRAMENTO, Calif. (AP) — California’s top insurance regulator on Friday said he would approve an emergency request by State Farm to raise premiums 22% on home insurance for about a million customers if the insurance giant could justify the hike at a public hearing. State Farm, the state’s largest insurer with roughly 1 million home insurance policies in California, said the emergency rate would help the company rebuild its capital following the Los Angeles wildfires that destroyed more than 16,000 buildings, mostly homes. The company is trying to prevent a “dire” financial situation that executives say could force them to drop more California policies. California Insurance Commissioner Ricardo Lara said other California insurers won’t be able to absorb State Farm’s customers if the insurance giant stops doing business in California, but that he wanted more data on how the company manages its finances and calculates risks. He asked the company to present its argument publicly on April 8 to a judge, who