State Farm requests residence insurance coverage fee improve in California

SAN FRANCISCO – State Farm is asking for a home insurance rate increase in California.

This week, State Farm General filed a request for a 30% increase for homeowners, 52% for renters and 36% for condo owners, the San Francisco Chronicle reported.

If approved, the rate increase would be State Farm’s largest in at least seven years, according to the company’s filings. 

Insurance commissioner Ricaro Lara told the Chronicle that the request raises “serious questions about its financial condition.” 

State Farm last raised its rates by an average of 20% statewide in March. 

At the same time, the company announced it would not renew about 30,000 homeowner policies in order to reduce its exposure to risk. For the past year, it also hasn’t offered new homeowner policies for the same reason.

Before the increases are approved, the request must be reviewed by the state.

Meanwhile, new state data shows that homeless encampments, along with wildfires, are affecting insurance for California businesses.

The number of reported encampment fires has doubled statewide since 2020.

Three of those were this year at a homeless camp in Marin County that sits next to a roofing company.

In one case, flames reached a pipe linked to a large propane tank.

“If it would have gone any further down, before the fire department was able to put it out, it would have caused the propane tank to blow up,” Christine Miller, a roofing co-owner said. 

An attorney for insurance agents and brokers told KTVU that companies can cancel policies for unpaid premiums, fraud, and if there’s a dramatically increased risk that wasn’t present when the insurer first issued the policy.

The state is offering its own insurance plan, but businesses said the rates are high, and they don’t cover contents or inventory.