The California Department of Insurance published a press release announcing the approval of emergency rates for State Farm.
A judge ruled in favor of State Farm’s emergency rate increase request, which California Insurance Commissioner Ricardo Lara then adopted. State Farm requested an emergency interim rate in February 2025. The judge found that State Farm was experiencing surplus depletion and financial distress and approved the interim rate increase, subject to future review.
The order approved a 17% interim increase for State Farm’s homeowners line, slightly lower than the 21.8% increase requested by State Farm. They must also receive a $400 million cash infusion from their parent company to reinforce their solvency. Finally, State Farm has agreed not to issue any new block non-renewal programs until the end of 2025.
The emergency rate increase is effective June 1, 2025. A full rate hearing will follow at a date determined by the judge.
The press release can be found here.