State Farm recently requested its largest home insurance rate increase to date, a move that would worsen the insurance crisis in California but also signaled that the company may be in financial trouble.
State Farm General, the company’s California subsidiary, recently submitted a request to the California Department of Insurance to raise insurance rates for homeowners, condo owners and renters in the Golden State.
On average, State Farm General is hoping to raise rates 30% for homeowners, 36% for condo owners and 52% for renters, according to the San Francisco Chronicle.
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“State Farm General’s latest rate filings raise serious questions about its financial condition,” Ricardo Lara, California’s insurance commissioner, told the Los Angeles Times in a statement. “This has the potential to affect millions of California consumers and the integrity of our residential property insurance market.”
Lara also told the Times that his department would use all of its “investigatory tools to get to the bottom of State Farm’s financial situation.”