State Farm requests emergency rate hike that could raise Californians’ premiums by 38%

After months of forest fires in Los Angeles, the giant insurance company submitted to the state a request to raise interest rates to all its customers in California.

If the insurance organizers approved, there will be a 22 % increase for homeowners, 15 % increase for tenants and apartments, and an increase of 38 % for rental housing, according to a report issued by Fox 11 Los Angeles.

In a hearing on Tuesday, State Farm entered the California Ministry of Insurance to explain data that makes the distinctive increase of $ 921 million.

State Farm Executive has made comments on a distinguished height after California’s wildfires

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The retail office for the farm. The company said it will not accept new applications for certain coverage in California, noting high costs. (John Greim / Lightrockket via Getty Images / Getty Images)

“The temporary rate is mainly fair, adequate and reasonable, as a reaction to one of the largest disasters of the Hashim fires in the history of California, and it is in the interest of justice because it will help prevent the classification of classifications that will negatively affect hundreds of thousands of home owners in California,” said Catherine Wellington, a state lawyer in California.

The burning state farm office in Altadena, California, January 9, 2025. (Jimmy Vera / Fox News / Fox News)

Citorefornia requires approval of high prices after forest fires

State Farm raised prices in March 2024 and applied for another increase in June 2024.

Consumer monitoring, a non -profit organization calling for a taxpayer and consumer interests, said on the hearing state farm The minimum data required by the law has not provided the increase, according to the report.

A view of the beach property that was transported from the fire that overlooks the Pacific Ocean that was burned as a result of the Palisades fire on January 12, 2025, in Malibu, California. (Frederic J. Brown / AFP via Getty Images / Getty Images)

“They wanted to rely on the differences, and they did not provide sufficient information as required in contrast, which requires, among other things, to restore the sheet and a plan for excessive re -fee to document holders,” the Consumer Monitoring Authority said at the session.

State Farm said that the emerging decision was subsequently canceled by the Ministry of Insurance, it will recover its customers.

After the judge’s ruling, Insurance Commissioner Ricardo Lara will make a decision on increased emergency.

American insurance rates rise and lawsuits play an important role

The Vice President of State Farm was launched for innovation and investment capital, Haden Kirkpatrick, in March after a video of his excellent increases appeared in response to the last fires that appeared on the Internet.

“Our people look at this and say,-, it is perhaps 5 billion dollars, and we are short if something happens.” We will go to the Ministry of Insurance and say: “We have been excessively here [rates]“Nah will say.”

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“Any description of the state’s communications on the public farm regarding our price demand as a” treatment “of the average process or the public is wrong. This person was never involved or has any responsibility for the work decisions related to state statements or its operations in California, including anything related to our suspended rate applications or the emergency rate request.”

State Farm did not immediately respond to the Fox Business request for comment.

Eric Rafeel in Fox Business contributed to this report.