State Farm Insurance will be allowed to raise rates for homeowners in California starting next month. State officials are approving the company’s request for an “emergency” rate hike. This marks the first time California will allow an insurance company to raise its rates on an interim emergency basis.
California Insurance Commissioner Ricardo Lara approved the rate increase on Tuesday, after a judge ruled in favor of it. State Farm says it needs more revenue, as it expects to pay seven-billion dollars in claims following the Los Angeles-area wildfires in January. Homeowners could be paying 17 percent higher rates, while renters and condo owners could see their rates go up by 15 percent.
