State Farm Plans 22% Hike in Home Insurance Premiums Amid Wildfire Crisis

California homeowners face an impending 22% increase in insurance premiums from State Farm, as the company cites financial struggles exacerbated by the recent wildfires that have caused at least $250 billion in damages. This rate hike has raised concerns among state officials about the company's financial health, prompting a swift response from the California Department of Insurance. Nationwide, climate change is affecting housing affordability, with projections indicating that unadjusted real estate values could drop by $1.47 trillion in the next 30 years due to rising insurance costs linked to climate risks. Additionally, California's Fair Access to Insurance Requirements (FAIR) plan, which serves high-risk homeowners, is struggling under the weight of increased claims as traditional insurers withdraw from the market. In other regions like Rhode Island, insurance rates are also rising, though officials attribute this to local factors rather than the crises in California and Florida. The broader implications of these trends highlight a growing 'insurance gap' as both individuals and businesses find themselves increasingly exposed to climate-related risks.