State Farm General has aired an ultimatum to the entire state of California, saying it is seeking a 30 percent rate hike for homeowners, a 36 percent increase for condo owners, and a 52 percent increase for renters. If those demands are not met, the firm may move out of the state
By ALEX HAMMER FOR DAILYMAIL.COM
California‘s largest insurer has given the state’s government an ultimatum as the cost of providing cover continues to soar.
State Farm on Thursday told California’s Department of Insurance to let them raise home insurance rates for millions of citizens, or they will ax cover.
The move by the insurance giant comes amid a growing insurance crisis in California.
A slew of insurers – including Allstate, Farmers Direct and State Farm in a previous move – have limited cover or stopped doing business entirely in the Golden State.
They blame the intensifying risk of climate disasters.
As a result, more than half of all Californians say they have been affected by rising property or have been dropped by their insurer in the last year. With so few firms offering cover, they cannot simply move to a new provider.
State Farm General has aired an ultimatum to the entire state of California, saying it is seeking a 30 percent rate hike for homeowners, a 36 percent increase for condo owners, and a 52 percent increase for renters. If those demands are not met, the firm may move out of the state
State Farm disclosed it wants to raise prices by 30 percent for homeowners, 36 percent for condo owners, and 52 percent for renters.
‘This has the potential to affect millions of California consumers and the integrity of our residential property insurance market,’ insurance commissioner Ricardo Lara said – as the filings make their way through the proper channels.
He added how he was now keen to ‘get to the bottom’ of the company’s financial situation – and will conduct an extensive review before deciding on the applications as a result.
‘State Farm General’s latest rate filings raise serious questions about its financial condition,’ he said of the number one insurance firm in the US.