State Farm seeks insurance rate hikes after LA fires

California’s largest insurer, State Farm General, urged the state for an emergency rate hike averaging 22% as reimbursements in the aftermath of the devastating LA wildfires have put the company in a “dire” financial situation.

The insurer is seeking premium increases of up to 22% for non-tenant homeowners, 15% for renters and condominium owners, and 38% for rental properties. The state’s insurance regulator will investigate State Farm’s application.

The request comes as California is still reeling from the effects of the Palisades and Eaton fires in January that claimed 28 lives and destroyed over 16,000 structures.

State Farm insures 250,000 homes and 880,000 automobiles in Los Angeles County, per its website. A recent filing shows it received over 8,700 claims as of February 1 and paid over $1 billion.

California homeowners already face one of the highest insurance premiums in the country, as several cities are deemed a high-risk wildfire zone.