State Farm has requested considerable rate hikes across various property categories in California, citing increased risks from wildfires and rising reinsurance costs. The proposed changes include a 22% increase for single-family homes, 15% for condominiums, and 38% for rental homes. The company has also stopped accepting applications for new homeowners insurance policies due to these heightened risks. In addition, State Farm is withdrawing from commercial apartment policies altogether, resulting in approximately 2% of its existing policies being shed. The situation underscores the challenges insurers face in the wildfire-affected areas of California.
State Farm has requested significant rate hikes for various property types due to increased risks from wildfires and rising costs, reflecting the challenges in California's insurance market.
In addition to a 22% rate hike for single-family homes, State Farm is seeking a 15% increase for condominiums and a staggering 38% for rental properties.
The company has also discontinued new homeowners insurance applications in California, a move linked to heightened wildfire risks and costly reinsurance rates.
State Farm's moves have led to shedding approximately 2% of its California policies, and it intends to withdraw from commercial apartment policies, impacting multifamily property owners.
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