Beginning June 1, 2023, millions of Californians will experience property insurance premium hikes by State Farm, with homeowners facing a 17% increase, condo and renters a 15% increase, and rental dwellings up to 38%. Despite inadequate formal calculations required by law to justify these hikes, the California Department of Insurance approved them. Consumer advocates express concern over the lack of justification provided before the rate changes take effect and fear potential increases or refunds in the future, emphasizing the financial anxiety imposed on consumers.
"It's a huge disappointment for consumers that the judge has suggested consumers should pay now but allow State Farm to wait months before proving their rate hike," said Carmen Balber, the Executive Director of Consumer Watchdog. "That's what we're seeing with this decision today."
"That's what's really in the future for consumers - the potential for a rollback in refunds or an even higher rate increase in October," Balber said.
"We sleep at night wondering how we're going to make this," said Mariane Directo, a longtime customer of State Farm.
"We even had an outside inspection refute the denial. And they wouldn't let us appeal," said Directo.
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