State Farm Requests Emergency Rate Hikes for Homeowners in California
State Farm has requested an emergency rate hike for homeowners in California, including a 22% increase for single-family homes, a 15% increase for condominiums, and a 38% increase for rental homes. If approved, these new rates will go into effect on May 1.
State Farm covers 20% of the wildfire-affected areas in LA County and has received over 8,700 claims, paying out more than $1 billion to customers in Southern California.
In March 2024, State Farm received a 20% rate increase and announced that it would not be renewing over 70,000 policies in California. The company also decided to withdraw completely from offering commercial apartment policies, affecting multifamily property owners. This move resulted in State Farm losing about 2% of its policies in California.
Although State Farm requested a 30% rate hike in July 2024, it was not approved by the California Department of Insurance, which regulates insurance premium rates in the state.
In May 2023, State Farm announced that it would no longer accept applications for new homeowners insurance policies in California due to increased risks from wildfires and rising costs.