Posted on 05/20/2025 1:20:10 PM PDT by ChicagoConservative27
State Farm is evidently not satisfied with an emergency 17% rate hike for homeowners in California, and intends to ask for 11% more, adding up to a total of nearly 30% — despite failing its obligations to consumers.
As Breitbart News reported earlier this month, California Insurance Commissioner Ricardo Lara granted State Farm’s requested rate hike, despite protests from residents affected by the recent California wildfires.
Victims of both the Eaton and Palisades Fires have complained that State Farm engages in “lowballing” estimates of compensation for damages — a practice that, Sen Josh Hawley (R-MO) reported last week, the company has been accused of in other disasters around the country.
While President Donald Trump’s special envoy, Ric Grenell, has persuaded State Farm to make some compromises, such as increasing the amount of property loss it will compensate without an itemized list from 50% of the policy value to 65%, State Farm remains the target of criticism for many policyholders throughout the state of California.
(Excerpt) Read more at breitbart.com ...
Jake needs a new gig....................
Well, of course! Because as everyone knows, insurance companies don’t lose money. If they have to pay out anything, they are going to get it back, if the whole country has to pay for it!
Not only are they getting shafted by the insurance companies local news in LA said they have to have new sewers installed in the fire areas at $2.000.000 per property owner.
We know the city or stat don’t want the property huh Moe.
This is a key issue. Are rates raised elsewhere, due to staggering insurance payouts in California? Or are rates raised only in locales which have had fires or other disasters?
Someone told me that a national company such as State Farm, actually operates as 50 separate companies, so that each state has to balance premiums and payouts, for financial purposes. I don’t know if that’s true. But if true, rates should only be raised in such states which have experienced a disaster. In CALIFORNIA for example, the higher fire danger there should justify higher premiums than elsewhere.
Ditto Florida and other coastal states for hurricane damage.
State Farm will end up helping California take-over the vast majority of the properties hit by fire.
Insurance contracts are financial services and thus regulated at the state level and can be quite different from state to state. That is why insurance companies create a different company for each state.
“… despite failing its obligations to consumers.”
In what exact way did State Farm fail?
There’s was a comedian podcaster that talked about this and in the coastal areas they had septic systems & the state is requiring sea walls & other regulations before a building permit is even issued!! His number was in line with yours. I was sweating when we sold our last house because I thought I would have to have a $20,000 system installed since we didn’t have the land for extended laterals. The $20k system allows you to dump liquid into a drainage ditch & into streams.
A state has terrible management and won't let its citizens feel the additional cost of its already costly management.
State Farm is completely innocent of wrongdoing, here.
It should pack up and walk away. It has a duty to other citizens in the other 49 states to care for them, when California poops out its Enviro-Nazi policies to harm its own citizens.
Some do for states like New York but generally they get their policies set up through their domiciled state & then addendum them to meet state specific requirements. If the state is very liberal & have lots of requirements like California, you’re going to pay more. I worked for an insurance company that stopped writing policies in states that refused to allow any questions around AIDS. Guess what, if you’re dying of AIDs, cancer etc., its not real profitable for them.
Heart goes out to the conservatives in California....only.
Pay off the mortgage loan then cancel home insurance. It is a rip-off. Insurance fraud is legion. You are paying for it. State Farm does it the easy way. Home owners are forced to carry insurance when they have a mortgage loan.
State Farm won’t do it. It is easier for them to jack up rates as needed because home owners can’t cancel policy if they carry mortgage loan.
Dare I chance going without insurance? What if a tornado flattens it? It does sound tempting at times.
Agreed, but not 100% agreement. To FReeper Dilbert's question, for the most part, yes, insurance companies try to break even across a state region instead of being willing to take a loss on a few states as long as they profit across the nation. They may take a few statewide losses for a brief period of time, but only briefly. Thus, I agree with at least that part of FReeper bankwalker. Also that insurance is regulated at the state level.
But that may not be the main reason insurance companies create a different company for each state. Some states flat out ban "out of state" insurance companies. Thus, the national companies are forced to make a separate state company.
And sometimes the regulations or court judgements make it too expensive for the insurance company to stay in the state. After Hurricane Katrina, a court ruling in Louisiana made some insurance companies liable for flood coverage even when the insurance policies explicitly excluded flood coverage. So some insurance companies disappeared from Louisiana quicker than LSU's victories over Bama disappeared after Saban went to Tuscaloosa. I don't know how many left or if any of them later started offering coverage again in Louisiana.
Unless he can find an Emu willing to take 2nd billing....
"State Farm Not Satisfied with 17% Rate Hike in California; Asks for Nearly 30%"
Is State Farm in California having to pay for damages caused by uninsured illegal alien drivers?
State Farm can only ever increase rates that California approves.
So, no, your example can’t happen.
The black one or the white one?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.