State Farm, California's largest insurer, has received approval to raise homeowner and renter insurance rates as it confronts significant financial distress following over $7 billion in claims from recent wildfires. Despite initial reluctance, Insurance Commissioner Ricardo Lara conditionally approved the rate hikes after a public hearing, emphasizing the need to protect policyholders and maintain market integrity. Average increases will be 17% for homeowners and 15% for renters, starting June 1. However, the commissioner also indicated the need for State Farm to provide further justification in a later hearing, reflecting ongoing scrutiny.
State Farm can increase homeowner and renter insurance rates due to necessary fund stabilization as it faces over $7 billion in claims from fires.
Insurance Commissioner Ricardo Lara's conditional approval allows State Farm to raise rates but mandates a full hearing to justify these increases later.
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