State Farm asks California to approve rate hikes after wildfires
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California homeowners, already devastated by last month’s wildfires, could see their insurance rates go up by more than 20% if they’re covered by State Farm.
California’s largest private insurer, State Farm, is seeking a 22% average rate increase for homeowners. In a letter urging the California Department of Insurance (CDI) to «immediately approve» the request, State Farm said the hikes would help «avert a dire situation.»
An aerial view of homes which burned in the Eaton Fire on Jan. 19, 2025, in Altadena, California. (Mario Tama/Getty Images / Getty Images)
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The insurer is looking to increase rates by 22% for non-tenant homeowners, 15% for renters and condo owners, and 38% for rental dwellings. In its open letter to the CDI, State Farm says the increased rates would go into effect on May 1, 2025.
«As of February 1st, State Farm General (Fire only) has received more than 8,700 claims and has already paid more than $1 billion to customers,» the insurer wrote in a press release on its website. «State Farm General will ultimately pay out significantly more, as collectively these fires will be the costliest disasters in the history of State Farm General.»
Homes burn as powerful winds drive the Eaton Fire on Jan. 7, 2025 in Pasadena, California. (David McNew/Getty Images / Getty Images)
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The insurer added that it must increase current rates to ensure it could pay possible future claims. Additionally, State Farm announced that rates for Californians would be going up because the «risk is greater» in the Golden
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