State Farm Asks for More Insurance Rate Increases after L.A. Fires
State Farm, Which Already Has Rate Increase Requests Pending, Asked State Officials to Approve More Insurance Price Increases
The Santa Barbara Independent republishes stories from CalMatters.org on state and local issues impacting readers in Santa Barbara County.
State Farm, the largest insurer for California homeowners, this week asked the state to approve “emergency” rate increases for insurance policy holders, saying the recent Los Angeles County fires have imperiled its finances.
The company wants an average 22% increase for homeowners and 15% for renters to help provide “emergency” cash infusions as it attempts to pay out claims. State Farm said it would issue refunds if the requests it made last year — 30% for homeowners, 52% for renters and 36% for condominium owners — get approved and are lower than the interim rates. The state’s Insurance Department is investigating the company’s financial situation.
