California’s largest housing insurance company, a state farm general, claimed that a fire in Los Angeles has put a company in a harsh financial strait, asking the state authorities to raise the average emergency fee on a average of 22 % on Monday.
An insurance company, a subsidiary of Mutual Automobile Insurance Co., Ltd. in Bloomington, Illinois, said the company has already received at least 8,700 claims and has paid more than $ 1 billion. Fire is the most expensive natural disaster in history, so we expect to pay “significantly”.
“Immediate emergency provisional approval of additional charges is essential for more closely adjusted costs and risks and to be able to rebuild capital by state farms,” said the company.
State Farm stated that the latest demands are needed to reconstruct our capital basis, so it is not necessary to “further restrict” the abilities of companies that provide home insurance in the state. Insurance industry rating agencies say they expect to increase insurance premiums due to fire.
The company, which gained about 20 % of the housing owner insurance market in 2023, has guaranteed about 1 million housing owners in the state, and the other 1.8 million policies are effective.
Raising the proposed fee may have room for debate. Last June, the company applied for a 30 % increase in interest rates for housing owners, an increase of 36 % of condominium owners, and 52 % of the lessee. The request surprised state officials, saying that Secretary Richard Lara raised a “serious question about its financial state.”
The rate hiking request is still on hold.
The State Insurance did not respond immediately to the comment request.
In March, the company announced that it would not update 72,000 houses, apartments, and other real estate policies, and raised the rise in reconstruction costs, increased risk of wildfire, and regulations in the states of outdated.
It continued in May 2023, except for individual automobile insurance, to suspend new businesses, housing owners, other personal property and victims’ insurance in the state.
Last month, after the LA fire was revealed, the state farm fix the decision and was affected by the Parisard, Eaton, and other counties, which had not expired before the start of the fire. He said it would provide renewal to the insurance policyholder. January 7th.
The insurance company presumed that it was applied to about 70 % (1,100) out of the 1,626 house policy of 1,626, a major postal code of the Pacific Pacific, when the non -update was announced last year.
Later, under the same conditions, we expanded the application to the insurance policyholder in Los Angeles County. The company stated that there are about 250,000 housing insurance policyholders in the county.
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