State Farm has requested a 22% average increase in homeowners' insurance rates in California, citing heightened risks from increasingly destructive natural disasters. With recent wildfires in Los Angeles causing significant damage, resulting in over 8,700 claims and over $1 billion in payouts, the insurance provider is concerned about sustainability in the disaster-prone state. Nearly 1 million homeowners rely on State Farm in California, and the company emphasizes the necessity of aligning pricing with risk to maintain market integrity. The state's insurance commission plans to review the application, raising alarms about the company's financial health.
"State Farm, the largest homeowners' insurance company in California, has requested a 22 percent average rate increase, indicating severe challenges in the state's insurance market."
"Insurance will cost more for customers in California going forward because the risk is greater in California, the company stated, emphasizing the need to match pricing with risk."
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