State Farm Increases California Home Insurance Rate Hike Request
State Farm, California’s largest home insurer, has filed for an additional 11% home insurance rate hike, bringing its total requested increase to 30%. The insurer was previously granted a 17% emergency rate hike following the Los Angeles wildfires.
The latest request, filed with state regulators, also seeks higher increases for condominium owners (36%) and renters (52%). State Farm claims the additional hike is necessary due to losses from recent wildfires, including the Eaton and Palisades fires, which are expected to cost $7.6 billion in claims.
Deputy Insurance Commissioner Michael Soller stated that the insurer must justify the rate hike with data and transparency. Consumer advocacy groups have expressed concerns over the repeated requests, questioning whether they are justified.
A hearing is scheduled for this fall to review State Farm’s request. If approved, the additional 11% hike would take effect in 2026. The already-approved 17% rate hike will be implemented starting June 1, 2025.
The situation highlights the ongoing challenges in California’s home insurance market, particularly following recent wildfires. State Farm’s request is being closely watched by regulators, consumer groups, and policyholders.
