Calif. Homeowners Facing 22 Percent Increase in Insurance
California homeowners are facing a 22% increase in insurance premiums if State Farm, the state's largest single insurer with roughly 1 million home insurance policies in California, can "justify it with data in a public hearing" next month.
“State Farm claims it is committed to its California customers and aims to restore financial stability. I expect both State Farm and its parent company to meet their responsibilities and not shift the burden entirely onto their customers,” California Insurance Commissioner Ricardo Lara said in a statement.
“The facts will be revealed in an open, transparent hearing.”
Lara added that should State Farms' withdraw from the state "it is evident that other California insurers are unable to absorb State Farm's existing customers."
If that happens, current customers could be forced onto the California FAIR Plan, a last-resort insurance program the state is trying to move people away from.