State Farm seeks major rate hikes for California homeowners and renters

Source: Los Angeles Times

State Farm seeks major rate hikes for California homeowners and renters

Andrea Chang
Fri, June 28, 2024 at 12:35 PM EDT·4 min read

State Farm General is seeking to dramatically increase residential insurance rates for millions of Californians, a move that would deepen the state's ongoing crisis over housing coverage.

In two filings with the state's Department of Insurance on Thursday signaling financial trouble for the insurance giant, State Farm disclosed it is seeking a 30% rate increase for homeowners, a 36% increase for condo owners and a 52% increase for renters.

"State Farm General’s latest rate filings raise serious questions about its financial condition," Ricardo Lara, California's insurance commissioner, said in a statement. "This has the potential to affect millions of California consumers and the integrity of our residential property insurance market."

Lara noted that nothing immediately changes for policyholders as a result of the filings. He said his department would use all of its "investigatory tools to get to the bottom of State Farm’s financial situation," including a rate hearing if necessary, before making a decision on whether to approve the requests.

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Read more: https://news.yahoo.com/news/state-farm-seeks-major-rate-163506246.html