(State Farm) Major insurer gives brutal ultimatum to entire state: Let us put up prices by 50 percent or we will leave

A prominent insurance provider has aired an ultimatum to the entire state of California.

The firm, State Farm General, asked the state’s Department of Insurance Thursday to let them raise residential insurance rates for millions of citizens, or see them move out.

The move indicates financial trouble for the insurance giant, which currently covers homes razed by wildfires.

State Farm disclosed it is seeking a 30 percent rate hike for homeowners, a 36 percent increase for condo owners, and a 52 percent increase for renters as a result - a move that would only worsen the state’s already present housing crisis.

'This has the potential to affect millions of California consumers and the integrity of our residential property insurance market,' insurance commissioner Ricardo Lara said in a statement - as the filings make their way through the proper channels.

He added how he was now keen to 'get to the bottom' of the company’s financial situation - and will conduct an extensive review before deciding on the applications as a result.

'State Farm General’s latest rate filings raise serious questions about its financial condition,' he said of the number one insurance firm in the US.

He added how a rate hearing may even necessary, offering his commission an opportunity to hear from the public about the proposed rate changes.

Only then, he said, would officials make a decision on whether to approve the requests - a process that could end up taking months.

As it stands, the department is averaging 180 days per rate review, with some cases taking even longer, a department spokesperson confirmed to the LA Times.

My advice is to not COUNT on net metering. Use it if it's available, but always be mindful that the regulations/fees might change and thus it won't help you in later years.

I chose not to get a tracking system. To me it was adding moving parts that might break down in the future and increase my odds of needing repairs. I realized that for the same amount of money, instead of adding a tracking system I could simply add more solar panels and achieve the same increase in solar kWh without adding mechanical parts. The only moving parts in my entire solar system are the fans within my inverters.

To be fair to your friend about net metering, he lives in NH. Here in Alabama it's cheaper to be mostly energy independent regardless of if you sell power to the grid. Not only do we get a lot more sun, but the part of the year that we get the most sun (late spring to early fall) is the part of the year that we consume the most power for running the A/C. And we need to run the A/C more in the day than in the night. On top of that, my wife and I are usually home part of the day -- charging the EV while the sun is shining.
<>P> Thus I need less battery storage to make it through most nights without pulling from the grid than someone in NH would, who works in the office during the day and having to charge his EV at night, including in the part of the year that's most energy intensive to him (winter) when he gets less sun and has to run the heat more at night than during the day. Completely different from people in NH trying to lower their heating costs in the winter -- the time of the year they get less sun.

So even though I just said it's best to pretend net metering doesn't exist for the long term, I'll admit it's easier for me to say that in Alabama than if I lived in NH, where net metering might be vital to whether or not solar is worth it.

Yes, we join the thousands whose insurance with State Farm has so drastically risen. In shock, we called our agent with questions...no understandable or agreeable answers, but we decided to keep them for the year while we look around. This is the 2nd thing we’ve seen about their possible financial troubles (both posts on FR). At this point, not enough info. for us.

Yeah. The increased deductibles are really the only option. Can’t have the umbrella without the underling policies. At least not so far as I know. And I also agree about the tenants. I’ve been ok to date, but I see the same showing up. I keep my prices very fair. But the higher they “need” to go, the more likely one needs a group rather than a nice couple or family. Rents are getting so high it insults myself. So, I started selling.

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