July 20, 2025 #1 Local News, Information and Event Source for the Century City/Westwood areas.

State Farm Wins Emergency Approval to Raise Insurance Rates After Alleged $7 Billion Wildfire Loss

California Regulators Approve Interim Premium Hikes for Homeowners, Renters, and Landlords

Citing extraordinary wildfire-related losses, State Farm has been granted emergency approval to raise insurance premiums for California homeowners and renters beginning June 1, becoming the first insurer in the state to secure such an interim rate increase, as reported by Cal Matters.

The approval, finalized on Tuesday by Insurance Commissioner Ricardo Lara following a judge’s ruling, comes in response to State Farm’s claim that it faces more than $7 billion in payouts tied to the destructive January wildfires in Los Angeles County. The new rates will mean average increases of 17% for homeowners, 15% for renters and condo owners, and 38% for landlords of rental dwellings.

The rate hike was requested under rare circumstances earlier this year, as the company warned of financial distress. Although the California Department of Insurance’s staff supported the proposal, Lara initially withheld approval, requesting additional financial disclosures from State Farm and inquiring whether its parent company, State Farm Mutual, could offer assistance. Ultimately, Lara granted conditional approval and referred the matter to an administrative law judge, who presided over a three-day public hearing in April and issued the final decision.

Consumer Watchdog, a consumer protection group that has voiced opposition to the rate hike from the beginning, its executive director, Carmen Balber, said, “Today’s decision forcing consumers to pay now but allowing State Farm to wait months before having to show its math is a great disappointment for consumers. Voter-approved Proposition 103 says a rate hike shouldn’t come before the rate justification, but that’s what happened here. 

Balber added, “State Farm policyholders, many of whom are struggling to get their claims paid by the company after the Los Angeles fires, are now facing double-digit rate hikes. Nevertheless, we will fully defend consumers’ right to fair rates in the upcoming hearings where State Farm will finally have to justify what they want to charge.” 

While Lara acknowledged mounting public concern, including complaints about the company’s handling of fire-related claims, he told wildfire survivors during a Zoom meeting over the weekend that the rate increase and the claims dispute are being addressed separately.

The decision has drawn criticism from fire victims and state lawmakers, who argued that the insurer should be investigated, not rewarded with higher rates. Nonetheless, the judge’s ruling emphasized the temporary nature of the emergency approval and stated that State Farm must still justify its full rate-increase proposal at a separate hearing scheduled for next month.

Insurance Commissioner Lara and the court’s ruling may now set a precedent, raising the possibility that other insurers could seek similar emergency rate adjustments in the wake of future natural disasters.

Related Posts

Venice Family Clinic Slams HHS Funding Restrictions as Assault on Immigrants

July 18, 2025

July 18, 2025

HHS announced on July 10 that it would restrict access to programs like community health centers, Head Start, and other...

Former Hammer Museum Director Receives Getty Prize, Awards $500,000 to NPR

July 18, 2025

July 18, 2025

Philbin’s tenure at the Hammer saw the launch of the Hammer Projects series and the Made in L.A. biennial, alongside...

LAX Metro Transit Center Boosts K Line Ridership, Overall Metro Sees Slight Decline

July 18, 2025

July 18, 2025

The station completes the K Line, allowing continuous service from Expo/Crenshaw Station to Redondo Beach and enhancing regional connectivity through...

Salt & Straw Celebrates Ice Cream Week with Strawberry Shortcake Waffle Cone Through the Weekend

July 18, 2025

July 18, 2025

The item launched nationwide, available with any ice cream flavor or as an exclusive sundae featuring Strawberry Honey Balsamic ice...

Man Arrested in Brentwood for Impersonating Firefighter During Palisades Fire

July 18, 2025

July 18, 2025

The suspect faces at least 28 criminal counts—including 23 felonies—spanning incidents from 2023 to May 2025 Federal and local law...

Study Highlights Economic Impact of Cap-and-Trade Extension in Los Angeles

July 18, 2025

July 18, 2025

Governor Gavin Newsom and legislative leaders are pushing to reauthorize the program this year, citing its role in generating 287,000...

Nearly $1B Secured for Refinancing of Westfield Century City Mall

July 17, 2025

July 17, 2025

The proceeds will replace a $925 million commercial mortgage-backed securities loan, originally issued by Morgan Stanley in 2023 and due...

West Coast Premiere of ‘The Opposite of Love’ Opens at Hudson Backstage Theatre

July 17, 2025

July 17, 2025

Produced by Neil Gooding Productions, behind shows like Back to the Future: The Musical, the play runs Thursdays through Saturdays...

Tesla Seen Nearly Crashing into West LA Home After Collision

July 17, 2025

July 17, 2025

Footage depicted a blue Prius on the road with significant front-end damage A crash involving injuries was reported around 12:30...

DUI Checkpoints to be Conducted Across LA This Weekend

July 16, 2025

July 16, 2025

The LAPD selects checkpoint sites based on data indicating high incidents of impaired driving-related crashes and arrests The Los Angeles...

Mayor Bass Hails National Guard Withdrawal as Victory for Unity

July 16, 2025

July 16, 2025

The Pentagon’s decision to reduce the troop presence follows weeks of legal challenges and public demonstrations Mayor Karen Bass celebrated...

(Video) Did You Know Emma Chamberlain’s Coffee Shop is in Century City?

July 16, 2025

July 16, 2025

The outpost is a first for the popular influencer Did You Know Emma Chamberlain’s Coffee Shop is in Century City?...

Dodgers to Host Back to School Bash for Fire-Affected Families

July 16, 2025

July 16, 2025

The free event will offer free groceries, school supplies, outfits, haircuts, medical screenings, and carnival rides The Los Angeles Dodgers...

Hundreds of Red-Legged Frog Tadpoles Released in Santa Monica Mountains

July 16, 2025

July 16, 2025

Once widespread in California, red-legged frogs vanished from the Santa Monica Mountains by the 1970s Nearly 600 California red-legged frog...

LA Sees Second Straight Year of Homelessness Decline, Leaders Celebrate Progress

July 16, 2025

July 16, 2025

The survey, designed by the University of Southern California, reported a 17.5% drop—the largest two-year decrease on record The Los...