The California Department of Insurance published a press release announcing that State Farm’s request for an emergency interim rate increase has been provisionally approved.

Insurance Commissioner Lara has granted the request; however, State Farm must justify the need for the increase at a public hearing scheduled for April 8, 2025. The Commissioner requests that State Farm holds off on any non-renewals or cancellations for its California policyholders until the end of the year. Additionally, the Commissioner urges State Farm to secure a $500 million capital infusion or loan from its parent company, State Farm Mutual, to strengthen its surplus.

State Farm is the state’s biggest home insurer and has over one million homeowner policyholders. The emergency interim rate increases of 21.8% for homeowners, 15% for renter/condo tenants, and 38% for rental dwelling have been provisionally granted, pending the upcoming hearing on April 8th. After the hearing, the Commissioner can accept, adopt, or amend the request. If State Farm is not able to justify the increased rates, they are required to issue refunds with interest.