State Farm Seeks Additional 11% California Home Insurance Rate Hike After 17% Increase

State Farm, California's largest home insurer, is seeking to raise home insurance rates by a total of 30%, following a recent approval of a 17% emergency increase. The company initially requested a 30% hike but temporarily accepted 17%, and now plans to request an additional 11% to reach its original proposal, with the increases potentially taking effect in 2026. The proposed hikes also include significant increases for condominium owners and renters, with requests of 36% and 52%, respectively. These rate increases are intended to help State Farm recover from over $7 billion in wildfire-related claims, which have severely impacted its financial reserves. The requests have faced criticism from consumer advocacy groups who question whether the hikes are justified and call for more transparency and data to protect consumers. The California Department of Insurance emphasizes the need to balance fair rates to consumers with maintaining insurer solvency and availability of coverage in wildfire-prone areas.