California’s largest housing insurance provider’s state farm is trying to raise an average of 22 % housing insurance rates following the devastating mountain fire that has been waved. The company, which has been operated for almost a century in California, has submitted a request for raising prices in less than a month after announcing that it will provide policy renewal to housing owners affected by the fire. 。
The proposed increase caused an immediate concern, especially while working on the aftermath, especially among the victims of the wildfire. Many people feel that the timing will not worsen.
“I think many people are angry,” said Dennis Sue Go, a lawyer and president of the Pacific Coast Public Insurance Association. “They are angry at how the entire fire happened, but many of those state farm clients are in the way that it takes a lot of time to take people here. Masu.”
SZE criticized the high profits of being insensitive to those who have already lost a lot.
“I understand that the state farms are fully added to insurance, but at this point we are now standing in the Parisards -it is complete. It’s ridiculous, “she said. “Most of these people have an open or losing house. It’s not the right time to hike.”
According to the California State Insurance, the request for the state farm is thoroughly investigated.
“In order to protect the consistency of many millions of California consumers and housing property insurance, the department is responding in urgency and transparency to recommend a series of actions to commissioners. [Ricardo] Lara said, Gabriel Sanchez, a spokeswoman in the department.
In fact, the latest interest rate hikes of the state farm are not the first. Last June, the company demanded that the average of housing owners would increase 30 %, condominium owners by 36 %, and 52 % for lessee. The request is still on hold.
In addition to scrutiny, the Ministry of Insurance pointed out that new submissions would “make serious questions.” [State Farm’s] Financial state. “
State Farm defended the proposed hiking, with the increase in risks and financial burden caused by recent disasters.
“The cost of the mountain fire in January 2025 will further exhaust the capital from the state farm general,” said the company. “Because you need capital, insurance companies can pay for future claims for guaranteed risks.”
As of February 1, the state farm received more than 8,700 landscapes, and reported that the affected customers would pay more than $ 1 billion.
The company’s stance is clear. “In California, the risk will increase, so it will be insurance for California customers.”
However, the final decision on the rise in the proposed rates depends on the California State Insurance. This is a process that is expected to take time to meet all related parties.
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