State Farm in California is seeking to raise homeowners insurance rates by 30% for homeowners, 36% for condominium owners, and 52% for renters to protect its solvency amidst financial struggles.
The company's requests are the largest rate hike in seven years, employing a rarely used variance request to increase prices more than usual, raising concerns about its financial stability.
State Farm in California had a loss ratio of 89.61% last year, higher than the market average of 68.25%, reflecting financial strain as it pays more for claims than it earns.
The company's decision to not renew 30,000 homeowner policies and 42,000 commercial landlord policies aims to reduce exposure to risks and protect its financial standing.
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