State Farm asks for more insurance rate increases after LA fires \ stacker news ~econ

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State Farm asks for more insurance rate increases after LA fires calmatters.org/economy/2025/02/state-farm-insurance-rate-request-la-fires/

160 sats \ 7 comments \ @Bell_curve 4h econ

State Farm, the largest insurer for California homeowners, this week asked the state to approve “emergency” rate increases for insurance policy holders, saying the recent Los Angeles County fires have imperiled its finances.

The company wants an average 22% increase for homeowners and 15% for renters to help provide “emergency” cash infusions as it attempts to pay out claims. State Farm said it would issue refunds if the requests it made last year — 30% for homeowners, 52% for renters and 36% for condominium owners — get approved and are lower than the interim rates. The state’s Insurance Department is investigating the company’s financial situation.

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31 sats \ 6 replies \ @Satosora 2h

Is it wrong for me to say that if you cant afford the insurance, you should move to one of the other 49 states?

19 sats \ 5 replies \ @Undisciplined 1h

A little bit.

The blame should first go to the CA government that has made both housing and insurance artificially expensive (as well as pretty much everything else), as well as unjustly requiring home insurance in the first place.

As a general rule, though, there's nothing wrong with the sentiment that if you can't afford to live somewhere then you should live somewhere else. That's how the rest of us have to live.

30 sats \ 4 replies \ @Satosora 1h

Its a little bit wrong to expect cheap insurance in a high risk environment. Its pay to play. I know they have been getting pounded by fires lately, but its not a new thing. The smart choice would have been to relocate.

19 sats \ 3 replies \ @Undisciplined 1h

Absolutely, no one should expect cheap insurance in a place like that. However, the state does things that make insurance more costly to provide and it is reasonable to think they should stop doing that.

It's also reasonable to think you should not have to have insurance. One of the core principles of a free society is personal responsibility. If someone wants to take on all the risk of living somewhere, that's their business.