State Farm will increase insurance rates for California homeowners by an average of 20 percent in the coming year, according to media reports.
The upcoming rate hike for existing policies is due to “increased costs and risk,” the company told the Chronicle in a prepared statement.
State Farm had California’s largest market share for property and casualty insurance as of 2022, with 8.7 percent, the newspaper reported. The company also that year held more than one in five homeowner policies statewide, according to The Sacramento Bee.
Consumer Watchdog intervened regarding the latest rate hike, which was approved in December, but the organization eventually agreed to the increase, the Bee reported.
State Farm auto insurance rates will rise as well, by 21 percent as of Feb. 26 for California policyholders, while rates for renter’s insurance will spike 11.4 percent, according to The San Francisco Standard.
In September, Insurance Commissioner Ricardo Lara announced a package aimed at improving insurance offerings in the state in tandem with an executive order from Gov. Gavin Newsom urging regulatory action for communities affected by climate change.
The package included a proposal to transition homeowners and businesses from the FAIR Plan back to the normal insurance market with commitments from insurers to cover all parts of California by writing at least 85 percent of their statewide market share in high wildfire-risk communities.
Anna Schier patch.com
2024-01-09 20:51:58 , Rancho Santa Margarita Patch