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Major destabilization in CA homeowners insurance market by mid-2025?
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Resolution / Starting Odds
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Reports from major financial news outlets or California Department of Insurance
Story
State Farm Seeks 30% Rate Hike for California Homeowners, Renters
Jun 28, 2024, 06:42 PM
State Farm has requested a 30% rate increase for home insurance in California, with even higher rates for condos and renters. This marks the largest homeowners insurance rate hike the company has ever sought in the state. The California insurance commissioner has raised serious questions about State Farm's financial stability, suggesting that the company may be running out of money. Experts warn that such a significant rate increase could destabilize the entire California homeowners insurance market. State Farm's move comes amid an ongoing insurance crisis in California, described by some as a 'perfect storm' due to its timing and potential impact. The company has signaled to state regulators that it is worried about going insolvent, with some describing the rate hike as 'seismic-level.'
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