State Farm Insurance is seeking permission from the Californian state government to increase insurance rates as much as 50%

State Farm Insurance is seeking permission from the Californian state government to increase insurance rates as much as 50%.

Just months after announcing it would discontinue over 72,000 home policies in California, State Farm Insurance is seeking state approval to increase insurance rates by up to 50%.

The largest insurer in California has filed with the state Department of Insurance to raise homeowners' insurance policies by 30%, condo policies by 36%, and renters' policies by 52%.

“Rate changes are driven by increased costs and risk and are necessary for State Farm General to deliver on the promises the Company makes every day to its customers,” the company stated. “We continue to look for ways to maintain competitive rates and help our customers manage their risk.”

While climate risk and concerns about potential wildfires are among the reasons for the request, State Farm might also be pushing for the state to adjust rates in line with inflation, according to a consumer advocate.

“Insurers are claiming they haven't received fast enough rate increases from the Department of Insurance,” said Joel Laucher of United Policyholder, a non-profit group. “Several complications have probably resulted in some slowdowns of approvals.”

Even homeowners insured by other companies have seen significant rate hikes recently.

Susanne Solimann, for example, fought to keep her insurance policy after the company threatened to drop her, citing the risk posed by a tree over her roof and bushes near her Glendale home. Despite spending several thousand dollars to clear the vegetation, her rates still increased by a couple hundred dollars.

“It’s really stressful. Something has to be done because I worry about what I’m going to do in five or 10 years,” Solimann said. “I’m not going to work forever, and what if I can’t afford my homeowner insurance policy? There are people making the choice to live without insurance, which in California, anything can happen.”

State Farm’s proposed rate increases require approval from the California Department of Insurance, a process that could take several months.

Consumer advocates recommend that people try to work with their insurance companies for savings or shop around to other companies if their current policies become too expensive.