State Farm Seeks Emergency California Rate Hike After Fires
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State Farm, the largest home insurer in California, is asking for an emergency rate hike from state regulators as it warns that multibillion-dollar payouts from the Los Angeles wildfires threaten its balance sheet and the broader insurance market.
The company is seeking a 22% average hike in rates for homeowners and 15% for renters and condominium owners, according to a letter Monday to California Insurance Commissioner Ricardo Lara. Insurance for rental dwellings need to rise 38%, it said. The new rates would take effect May 1.