State Farm, the largest fire insurance provider in California with nearly three million policies, is seeking interim rate hikes due to the devastating L.A. wildfires. The company claims it will pay significantly more than $1 billion to customers and has received over 9,000 claims as of February.
If approved, the proposed 22% increase for homeowners, 38% for rental properties, and 15% for tenants and condo unit owners could take effect in May. State Farm expects these hikes to help avert a dire situation for its customers and the insurance market in California.
The company has stopped writing new policies in California since last spring and notes that the risk of wildfires is greater. Following an audit, LA County supervisor proposed moving homeless services under direct county control due to long-standing issues at the Los Angeles Homeless Services Authority (LAHSA).
These rate hikes are part of a broader trend of increasing insurance costs for Californians, with rent jumping 86% since September. State Farm’s request highlights the urgent need for insurers to adjust their rates to reflect the growing risk of wildfires in the state.
Source: https://laist.com/news/housing-homelessness/state-farm-california-rate-increases