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California approves State Farm’s 17% home insurance rate hike

May 14, 2025

By KAREN VELIE

Starting next month, State Farm can raise homeowner and other insurance rates by 17%. A judge ruled Monday that State Farm provided evidence of “extraordinary financial distress” following the Los Angeles-area wildfires.

State Farm, the state’s largest insurer, is the first company permitted to raise insurance rates on an emergency interim basis in California. The company expects more than $7 billion in claims because of the Los Angeles County fires.

The increase rates will apply to the approximately 1 million homeowners insured by State Farm in California.

 


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Over half of the living units in SLO are renters so my first thought was that Newsom has just puked all over rent control and or the purchase of affordable housing.


8

Well you need to make sure you have enough money to pay dividends…


5

So Los Angeles blows it and ignores a severe wind advisory and wasn’t prepared with an understaffed fire department… a mayor who was in Africa on vacation with an inadequate water supply and it is now costing the entire state of California’s residents who have State Farm more for insurance…


24

As long as the corporations remain profitable in our Capitalist economy is what matters most.


-12

I imagine the insurance market in Venezuela is robust


13

Someone has to pay for the LA fires, certainly can’t hold Governor Newsom, Mayor Bass, Fire Chief Crowley responsible for their failures, or have them or the insurance company lobbyists pay, it has to be the ratepayers.


23

We wonder how much of this is due to the State of California. incompetence?


53

Most of it.


18

I believe it is due to wildfires in the state that have caused $250 billion in property damages in just the last ten years, and I would guess that figure will be even larger in the next ten years. California is trying to do something about it by lowering greenhouse gas emissions, but that has faced stiff opposition in the business community and from citizens who have their heads stuck in the sand over the true threat we face from unmitigated climate change. We are lucky to still have State Farm in this state and given what has happened, a 17% increase seems fair.


-31

We are still emerging from the last ice age, so warming should be expected.


As far as fire mitigation goes, allowing goats to graze those hills would very significantly mitigate the risk of uncontrolled wildfires. But, heaven forbid, we would need to take steps to remove predation of the goats to make that solution viable…..however, we seem to prefer $250 billion in costs and loss of human lives over grazing goats and controlling lion and coyote populations. Makes me shake my head….


0

Glad I get to pay for a fire 200 miles away for people who constantly vote against doing any sort of fire mitigation.


74

Just gives you the warm fuzzies doesn’t it.


33

200 miles away? What an ignorant comment. Fire is an ever present danger in every home everywhere. So hung on politics you’ll ignore that? The population/housing density and poor fire prevention education are much more to blame than any non burning down of nearby forests lol.


-27