State Farm calls for rate increases for homeowners, condominium owners and renters in California

Insurance Commissioner Lara examines State Farm’s proposed rate increases

State Farm has announced it will increase premiums by 30% for homeowners, 36% for condo owners and 52% for renters and has given the state of California an ultimatum. The insurer has refused to sell new policies in the state in the summer of 2023.

“This could impact millions of California consumers and the integrity of our home insurance market,” said Insurance Commissioner Ricardo Lara. As the filings work their way through regulatory channels, Lara stressed the importance of a thorough audit to understand the company's financial situation.

In a statement on the matter, State Farm said: “We continue to look for ways to maintain competitive rates and help our customers manage their risk. Customers with questions are encouraged to speak with their local State Farm representative. The representative can review the customer's policy, including deductibles and coverages.”

“State Farm General's recent rate filings raise serious questions about its financial condition,” Lara added, highlighting concerns about the nation's leading insurance company.

For State Farm, this is already the third major rate increase in California in the past year. Last summer, the insurer stopped issuing new building insurance policies in the state, citing wildfire risks and rising construction costs as the reason.

Last December, State Farm received approval for a 20 percent increase in policies for home and condo owners.