Here we go again. State Farm, the largest provider of homeowners’ insurance in California, is seeking to raise premiums by a staggering average of 30%. This move would impact over 1.2 million homeowners across the state, marking what appears to be the steepest rate hike ever requested by the insurance giant in California. This comes on the heels of recent approvals allowing State Farm to increase rates by 7% and 20% earlier this year.
State Farm claims that this hike is essential to stabilize its financial situation following billions in losses due to wildfires and other catastrophic weather events. They are pushing for these increases to take effect as soon as early next year, though regulatory approval could delay the process.
Under the current proposal, almost all affected policyholders, including those in the Bay Area, would see their premiums jump between 25% and 35%. For context, California homeowners already pay an average of $1,453 annually for the most common type of coverage. State Farm’s proposed hike would raise these costs by hundreds, if not thousands, of dollars.