California Rejects State Farm’s Rate Increase Request Amid LA Fire Claims

The insurer said the rate increase is needed to prevent further depletion of capital that may affect its credit rating and harm mortgage customers.

A fire-damaged vehicle is left in front of a beachfront property after mudslides from a storm in Malibu, Calif., on Feb. 14, 2025. Damian Dovarganes/AP Photo

California’s insurance commissioner on Feb. 14 turned down a request by insurer State Farm for an emergency interim rate hike of 22 percent for homeowners insurance, amid a flood of claims for damage caused by the devastating Los Angeles fires.

“The burden is on State Farm to show why this is needed now. State Farm has not met its burden,” Insurance Commissioner Ricardo Lara said in a statement.