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Zorro

(16,747 posts)
Tue Feb 4, 2025, 10:05 AM Tuesday

State Farm seeks emergency rate increase averaging 22% after L.A. fires

State Farm General, California’s largest home insurer, asked state officials for an emergency rate hike averaging 22% Monday, saying the Los Angeles County fires have put the company in dire financial straits.

The insurer, a subsidiary of State Farm Mutual Automobile Insurance Co. of Bloomington, Ill., said the company has already received at least 8,700 claims and paid more than $1 billion to customers. It expects to pay out “significantly more,” with the fires being the costliest natural disasters in its history.

“As the insurance commissioner, you can have a very significant impact on [State Farm General’s] ability to continue operating in California by immediately approving the requested interim rate changes,” the company said in a letter to state Insurance Commissioner Ricardo Lara.

The company is also asking for rate hikes of 38% for rental dwellings and 15% for tenants, with the rates taking effect May 1.

https://www.latimes.com/business/story/2025-02-03/state-farm-californias-largest-homeowners-insurer-asked-monday-for-an-emergency-22-rate-increase

Republicans don't believe in climate change, but the insurance companies certainly do.

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