Posted on 05/14/2025 5:50:22 PM PDT by Angelino97
State Farm General, the largest home insurer in California, has been given the green light to hike its prices across the state, sparking fierce backlash from consumer advocates.
The insurance provider has been granted permission by a judge and Insurance Commissioner Ricardo Lara to raise its home insurance prices by an average of 17 percent.
Premiums for condo owners and renters will see prices rise an average of 15 percent.
But the worst affected group will be rental home owners, who will have to fork out an extra 38 percent on average.
The ruling comes after a year-long bitter back and forth between the insurance company and the state, which must approve insurance rate changes.
Last year State Farm demanded it be allowed to raise its prices or it would pull out of the state entirely.
Initially, the insurer asked to raise its prices by 30 percent for homeowners, 36 percent for condo owners, and 52 percent for renters.
The new agreed upon hike, which will be reflected on bills as early as next month, is the second price rise in two years and faces fierce opposition.
The insurer began raising its home insurance prices by an average of 20 percent in March 2024.
State Farm claims the latest round of price increases is necessary to stop the company going bust, especially in the wake of the devastating Los Angeles fires which damaged its bottom line further.
State Farm has received nearly 12,700 claims from wildfire victims, and has paid customers more than $3.5 billion, the San Francisco Chronicle reported...
Judge Karl-Frederic J. Seligman who approved the insurer's case, said the deal 'represents a fundamentally fair, adequate, and necessary measure.'
He added that it is 'effectively functioning as a rescue mission to stabilize State Farm's financial condition while safeguarding policyholders.'
(Excerpt) Read more at dailymail.co.uk ...
Owning rental homes in blue jurisdictions is insane.
There are these things called actuaries, they are very good at math and have been for centuries. They know how to keep money on the plus side.
Note that there are no actuaries in the federal government.
More seriously, why is raising rates unthinkable in a state with higher than usual risk where the government is unlikely to do what is necessary to reduce the risk? It's either that or just quit insuring California.
State Farm pulled out of California in regards to covering apartment buildings. I’m surprised that they are covering these type of properties at all.
Insurance prices have greatly increased on everything Since Covid. I don’t thing that many people can afford it anymore. EV’s and the cost of fancy modern cars have driven up the price of auto insurance. Disasters, material, and labor costs have driven up the price of home insurance. The amount of increase is staggering.
And insurance companies are a great example of socialism at it greatest as people who live in non disaster areas get to pay a premium for those that do.
And if you own an EV then you should be fully responsible to pay much higher insurance premiums to cover the costs. No one else should pay more to cover you.
Unthinkable?!?!?!? Obviously, journalists don’t think, and can’t comprehend simple math.
Raising prices to cover increasing costs is unthinkable?
That’s a new one.
This rag loves to use the term unthinkable.
As things in CA continue to deteriorate, Trump needs to start building a wall between CA and the United States...
The migration of CA peasantry into other states will convert those destinations into the same kind of s_hole that they allowed in CA...
Dear California: Welcome to Florida.
When someone else pays to replace a loss (i.e. an insurance company, or govt), the consumers are willing to pay more up front.
I have to shell out almost $300 more this year to subsidize the Pasedena and Palisades claims. I don’t live anywhere near zones determined high fire risk.
In red areas of Florida too. They doubled mine and didn’t even ask the state.
Welcome to Las Vegas!
??? Did they get let go? My sister was an actuary for the VA but quit to stay home with her baby a couple years ago.
Duh
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