US EditionState Farm wins first-ever emergency rate hike in California
- On Tuesday, California authorized a 17% emergency premium increase for State Farm after the insurer requested the hike in response to wildfires that severely impacted two communities in Los Angeles during January.
- State Farm sought the increase after revealing financial difficulties due to wildfire-related claims exceeding $7.9 billion from incidents in Pacific Palisades and Altadena.
- The insurer, the state's largest, will raise rates by 15% for renters and condo owners and 38% for rental dwelling owners starting June 1, with a $400 million parent company infusion to support finances.
- The judge overseeing the case characterized the rate adjustment as a compromise between keeping insurance affordable and meeting revenue requirements, while Consumer Watchdog condemned the decision as premature and initiated legal action against the state's insurance commissioner.
- This first emergency interim rate approval in California highlights the ongoing statewide insurance crisis and could set a precedent for future emergency rate hikes by insurers after disasters.
12 Articles
12 Articles
Pasadena Star News
State Farm gets California nod to hike homeowner policies 17%
California on Tuesday approved a 17% emergency rate hike for State Farm after the state’s largest insurer made an emergency request following January wildfires that devastated two Los Angeles communities. Insurance Commissioner Ricardo Lara’s endorsement means the emergency rate hikes, a first for the state, are set to begin June 1. Renters and condo owners will see a 15% increase, and rental dwelling owners a 38% increase. In addition to the ra…
Times-Standard
State Farm wins first-ever emergency rate hike in California
State Farm can raise homeowner and other rates starting next month, becoming the first insurance company to win approval to do so on an emergency interim basis in California. The state’s largest insurer made the unprecedented request for emergency rate hikes earlier this year, after it said it was in financial distress and expected more than $7 billion in claims because of the Los Angeles County fires in January. The state Insurance Department s…
Judge backs State Farm's 17% emergency rate hike for homeowners
Administrative Law Judge Karl Frederic Seligman recommended that California Insurance Commissioner Ricardo Lara grant State Farm General, the state's largest home insurer, a 17% emergency hike in its homeowners insurance rates.
Coverage Details
Bias Distribution
- 57% of the sources are Center
To view factuality data please Upgrade to Premium
Ownership
To view ownership data please Upgrade to Vantage
