State Farm Wins 17% Emergency Rate Hike for Homes After LA Fires
Homes destroyed by the Eaton Fire in Altadena, California, on Jan. 20.
Photographer: Kyle Grillot/BloombergThis article is for subscribers only.
State Farm has been approved for an emergency 17% rate increase on homeowner insurance policies in California, part of an effort to shore up the state’s largest insurer after the devastating wildfires in the Los Angeles area.
The hike, which takes effect in June, also allows a 15% boost for condo coverage, according to Insurance Commissioner Ricardo Lara. It follows a three-day hearing in April, where an administrative law judge found that the adjustment balanced consumer protections with the company’s financial stability. The judge’s proposed order was adopted by Lara on Tuesday.