California’s top insurance regulator is allowing State Farm to raise premiums by a massive 17% for all of its home insurance customers in the state to help the insurer rebuild its capital following the Los Angeles wildfires.
The insurance provider has argued the emergency rate hikes are necessary to help the company avoid a “dire” financial crisis that could force it to drop more California policies. The state’s largest home insurer said it was already struggling financially before this year, but the LA fires, which destroyed more than 16,000 buildings in January, have made things worse.
