Democrat-controlled California just took another step toward total implosion thanks to this major insurer

https://commons.wikimedia.org/wiki/File:StateFarmInsuranceMarkham2.jpg, Raysonho @ Open Grid Scheduler / Grid Engine, CC0, via Wikimedia Commons

Living in Democrat-controlled California is getting tougher by the day with more ridiculous regulations being passed all the time.

And while the Golden State is starting to see people leave in droves some residents continue to stay put.

But now Democrat – controlled California just took another step toward total implosion thanks to this major insurer.

State Farm announces massive rate hikes in California

State Farm is California’s largest insurer, and it just announced potential plans to raise rates for many of its customers living in the state.

The rate hikes could be as much as over 50% as the massive insurance company ponders its future in California.

The company filed with the California Department of Insurance, noting that its subsidiary in the state required an increase in homeowners insurance rates.

Policyholders could see a 30% increase for homes, 36% for condos, and an eye-watering 52% increase for renter’s policies.

In a statement to Fox Business, the company wrote that it “is working toward its long-term sustainability in California. Rate changes are driven by increased costs and risk and are necessary for State Farm General to deliver on the promises the Company makes every day to its customers.”

The insurance giant is California’s largest home insurance provider, but has made several moves in recent years to try and reduce its exposure there. 

Last year, State Farm announced it would no longer accept new home insurance applications in California.

According to the company, the decision was made due to “historic” increases in inflation and construction costs.

In March, State Farm said it would cut 72,000 home and apartment insurance policies in California largely because of inflation, increasing risks from various catastrophes, and regulatory costs.

Ricardo Lara, California’s insurance commissioner, said the decision from State Farm to cut those policies was a “crisis.”

Now, Lara is raising more concerns after the company’s latest request to raise rates. 

“State Farm General’s latest rate filings raise serious questions about its financial condition. This has the potential to affect millions of California consumers and the integrity of our residential property insurance market,” said Lara.

The hikes aren’t a done deal yet

While the news of insurance rate hikes is certainly cause for concern, they are not written in stone – just yet.

According to Lara, the rate increases must be approved by the California Department of Insurance.

In January 2023, the DOI approved a 6.9% increase for State Farm, and then an intervener group approved a whopping 20% rate hike for homeowners and condo owners who had policies with State Farm in December.

Lara said, “We will use all the Department’s investigatory tools to get to the bottom of State Farm’s financial situation. We take this process seriously.”

For now, people living in California will just have to wait and hold their breath.

US Political Daily will keep you updated on any developments to this ongoing story.