State Farm General, already facing financial peril before the Los Angeles wildfires, has asked state insurance regulators to approve an immediate price hike to prevent “a dire situation” for both its policyholders and the entire California market. 

On Monday, the company sent a letter to the California Department of Insurance asking for an immediate interim rate increase — including an average 22% hike for homeowners, 15% for condo owners and 38% for rental dwellings — as it faces the most costly natural disaster in company history. A Chronicle analysis of company data found State Farm insures more homes in the neighborhoods in and around the fire perimeters than any other insurer. 

“We are requesting that you take emergency action to help protect California’s fragile insurance market,” the letter, signed by several State Farm General executives, read.

State Farm General’s preliminary financial results show its policyholder surplus was just $1.04 billion at the end of 2024 — down from $4 billion in 2016, according to the company. As of Feb. 1, the company has paid more than $1 billion in claims related to the Los Angeles wildfires, making it responsible for roughly a quarter of the total payments that have gone out to wildfire survivors so far. State Farm said expects its payments to quickly rise once debris removal and rebuilding begin.