State Farm seeking 30% rate hike for CA homeowners: Here's what to know

State Farm has requested a 30% homeowners insurance rate increase, 36% condo owners insurance rate increase, and 52% renters insurance rate increase in California, raising concerns about the company's financial stability5. The company's California subsidiary, State Farm General, submitted these requests to the California Department of Insurance.

State Farm is invoking a rarely used part of the insurance law in its recent rate filing, which allows insurers to request price increases more than normally permitted "in order to protect the insurer's solvency3." This regulation is meant to address a company's financial solvency, raising serious questions about State Farm's financial condition.