Live Insurance News

California Approves State Farm Massive Insurance Rate Hike Amid Consumer Pushback

March 17, 2025March 17, 2025 Nordstrom

State Farm’s Controversial Rate Hike: What You Need to Know California homeowners could see a significant increase in their insurance premiums following a provisional decision by Insurance Commissioner Ricardo Lara. On March 14, 2025, Lara announced preliminary approval for a 22% rate hike on State Farm’s homeowner insurance policies. This decision hinges on conditions set by the commissioner and a public hearing, scheduled for April 8, where State Farm must justify its request. The proposed hike could raise premiums for renters and condo owners by 15% and landlord coverage by…

State Farm’s Financial Challenges Leave California Homeowners in Limbo

March 3, 2025March 3, 2025 Ester Adams

State Farm, the largest property insurance provider in California, is dealing with financial instability after a series of devastating wildfires. This turmoil has placed homeowners across the state in a precarious position, as discussions between the insurer and state regulators continue with no resolution yet in sight. Wildfire Losses Plunge State Farm Into Financial Uncertainty The Los Angeles fires, which ravaged neighborhoods earlier this year, have dealt a heavy financial blow to insurers, with State Farm bearing the brunt of the damage. The company’s homeowner claims have surged to a…

Wildfire Survivors Get a Lifeline as California Pushes for Full Coverage Payments

February 10, 2025February 9, 2025 G. Turner

California Insurance Commissioner Calls on Insurers to Ease Wildfire Survivors’ Burdens A Compassionate Plea for Full Coverage Without Detailed Inventories California Insurance Commissioner Ricardo Lara is taking a strong stance to support survivors of recent wildfires in Southern California. Recognizing the emotional and logistical toll of losing a home, Lara has issued a Notice urging residential property insurance companies to provide full contents coverage limits without requiring policyholders to compile exhaustive inventories of their destroyed belongings. “It is inhumane to require wildfire survivors who have lost everything to list every…

State Farm Wants Higher Premiums, Consumer Watchdog Says ‘Prove It!

February 10, 2025February 9, 2025 Logan B.

Consumer Watchdog Challenges State Farm’s Emergency Rate Hike Request Consumer advocacy group Consumer Watchdog has raised objections to an emergency interim rate increase requested by State Farm, arguing the insurance giant has not provided sufficient justification for its demands. Calling attention to strong consumer protection laws in California, the organization filed two letters with Insurance Commissioner Ricardo Lara to challenge the proposed rate hikes. These increases, Consumer Watchdog asserts, could unfairly burden individuals already coping with the rising costs of recovery from natural disasters. What State Farm Is Requesting State…

State Farm Reverses Course, Offering Hope to Wildfire-Affected Homeowners

January 17, 2025 G. Turner

Thousands of Homeowners Find Relief Amid Uncertainty After devastating wildfires tore through Los Angeles County earlier this month, State Farm has announced a reversal in its policy cancellations, providing much-needed relief to thousands of California residents. Homeowners who feared losing their insurance coverage now have the option to renew their policies, a decision applying to those whose insurance was active as of January 7, 2025—the day the fires ignited. State Farm’s U-Turn in the Face of Crisis State Farm’s decision impacts approximately 1,100 policyholders in Pacific Palisades’ ZIP code 90272…

High Wind Warnings Issued as California Faces $20 Billion in Fire Losses

January 11, 2025January 13, 2025 Live Insurance News

California Wind Forecast and Fire Risk Southern California is bracing for another dangerous fire weather event as the Santa Ana winds are set to return. After a brief reprieve over the past 24 hours, forecasters predict wind gusts of up to 65 mph will sweep through the region late Saturday into Sunday morning, once again intensifying wildfire threats. The National Weather Service has issued High Wind Warnings for much of Los Angeles and Ventura Counties, elevating the fire outlook to a “Critical” risk level. Key fire zones, including areas affected…

California Insurance Companies Pull Out, But This Rule Could Bring Them Back

December 31, 2024December 30, 2024 Live Insurance News

California’s New Rules to Tackle Home Insurance Crisis with Reinsurance Costs California has unveiled a new regulation allowing home insurers to charge higher premiums to cover reinsurance costs. This decision, led by Insurance Commissioner Ricardo Lara, marks the latest step by the state to address its home insurance crisis, as insurers withdraw from high-risk wildfire areas. Here’s what you need to know about the changes and how they could reshape the state’s insurance market. What the New Reinsurance Regulation Means For the first time in California, insurers can factor reinsurance…