February 5, 2025 The Newspaper Serving LGBT Los Angeles

 State Farm Seeks Emergency Rate Hike, Citing Wildfire Losses—Consumer Advocates Push Back

Insurer Requests up to a 38% Rate Increase, but Critics Call It an Unjustified Cash Grab

In a press release issued on February 3, 2025, State Farm General requested immediate approval from the California Department of Insurance (CDI) for interim rate increases, including an average 22% hike for homeowners, 15% for tenants who are renters, 15% for tenants who are condominium unit owners, and 38% for Rental Dwelling (RDP) citing financial strain from the January 2025 wildfires.

This is the fourth request from the insurance company in the last year, after requesting rate hikes three times in 2024. 

The insurance provider, which is the largest insurer in the state, claims to have received over 8,700 wildfire-related claims and paid over $1 billion as of February 1. The company expects total payouts to significantly exceed this amount, making the disaster one of the costliest in its history.

The California Department Insurance Department responded to this request by saying, “To protect millions of California consumers and the integrity of our residential property insurance market, the Department will respond with urgency and transparency to recommend a course of action for Commissioner Lara.”

“It’s shameful for State Farm to be trying to take advantage of this tragedy and make money on the backs of California homeowners who are trying to recover,” 

Consumer advocates are not convinced, either. Carmen Balber, Executive Director of Consumer Watchdog, stated, “This request is really outrageous for an emergency increase… If the company has numbers to show it deserves an increase, it can go through the regular process. To this point, State Farm has only delayed and refused to respond to requests both from Consumer Watchdog and from the Department of Insurance to prove the rate increase itself was justified.”

In a press release, Doug Heller, the director of insurance for the nonprofit, left-leaning Consumer Federation of America said, “has been quite profitable in California over the last several years,” Doug Heller, the director of insurance for the nonprofit, left-leaning Consumer Federation of America, according to USA Today. “They have built up an incredible fortune in order to deal with crisis. If they feel that they are going to need rate hikes in the future, they have a right to go through the process, but to be putting on the emergency siren seems more like trying to bully the state into handing over cash while we’re trying to recover from disaster.”

Related Posts

West Hollywood’s Drag Story Hour Returns for 2025 Season This Week

February 4, 2025

February 4, 2025

Family-Friendly Storytelling Series Celebrates Diversity and Inclusion The City of West Hollywood will launch its 2025 season of Drag Story...

Free Narcan to Combat Opioid Overdoses Available at the West Hollywood Library

February 4, 2025

February 4, 2025

Naloxone and Fentanyl Test Strips Are Available With No Payment or ID  In response to a rise in fentanyl and...

Influencer Florence Mirsky Responds After Her Racist Rant Is Caught in Video Footage

February 4, 2025

February 4, 2025

Viral Footage Shows Mirsky Using Slurs and Berating Valet Workers in Beverly Hills Influencer and cannabis entrepreneur Florence Mirsky, who...

(Video) Los Angeles Marathon Returns For 40th Anniversary

February 4, 2025

February 4, 2025

Register at mccourtfoundation.org Register at https://t.co/JUuzwhVeun pic.twitter.com/3m3wiyoBm4 — Palisades News (@PalisadesNewsLA) February 4, 2025

CCPD Seek Public’s Help in Finding Missing Elderly Man with Dementia Last Seen in Culver City

February 3, 2025

February 3, 2025

Resident Last Seen on Washington Boulevard, Public Urged to Report Any Sightings Culver City’s Police Department is asking for the...

Los Angeles County Ramps Up Storm Protections in Fire Burn Areas As Two Storms Approach

February 3, 2025

February 3, 2025

Officials Install Flood Barriers and Urge Residents To Prepare As a storm system approaches California this week, Los Angeles County...

Beyoncé and Kendrick Lamar Make History at the 2025 GRAMMY Awards

February 3, 2025

February 3, 2025

Beyoncé Wins Album of the Year, Kendrick Lamar Sweeps Five Categories The 2025 GRAMMY Awards delivered a night of historic...

Chappell Roan Wins Best New Artist at the 2025 GRAMMYs, Calls for Fair Pay in the Music Industry

February 3, 2025

February 3, 2025

Queer Pop Star Delivers Heartfelt Speech on Artist Wages and Healthcare  Chappell Roan won the Best New Artist Award at...

High-End Beverly Hills Watch Dealer Sentenced to Over 5 Years for $5.6M Fraud

February 3, 2025

February 3, 2025

“The Timepiece Gentleman” Ran Luxury Watch Scheme, Defrauded Clients “The Timepiece Gentleman” was sentenced Wednesday to 70 months in federal...

Goop Owner Gwyneth Paltrow Takes a Loss on Brentwood Mansion, Sells for $22 Million

February 2, 2025

February 2, 2025

Oscar-Winning Actress Originally Listed the Estate for Nearly $30 Million in May Actress and wellness entrepreneur Gwyneth Paltrow has sold...

Former Beverly Hills Mansion of Hollywood’s Most Private Star Now for Rent for $45K

February 2, 2025

February 2, 2025

Iconic Estate in Beverly Crest Is Now Available for Purchase and Lease Old Hollywood’s most mysterious star’s home is back...

West Hollywood City Council To Review Potential Stations For K Line Extension

February 2, 2025

February 2, 2025

City Council To Review Transit Accessibility Improvements for First Last Mile Plan The West Hollywood City Council is set to...

Culver City Man to Plead Guilty Crashing a Drone into Firefighting Aircraft in Santa Monica

January 31, 2025

January 31, 2025

Drone Crash Grounded a Super Scooper During Critical Period the Palisades Fire  The mystery of who was piloting the drone...

(Video) See How Mirror Mirror Med Spa Can Unlock Your Beauty

January 31, 2025

January 31, 2025

For More Info, Go To https://www.mirrormedspa.com/ For More Info, Go To https://t.co/de34v2fwdz pic.twitter.com/Pq6lJZRlTN — Palisades News (@PalisadesNewsLA) January 31, 2025

Quake Strong Steps Up to Help Rebuild Los Angeles

January 30, 2025

January 30, 2025

The recent wildfires in greater Los Angeles have left a devastating mark, claiming lives and destroying entire neighborhoods. For more...