State General Insurance Updates for California Residents

State Farm General - Summary Update

For six months, thousands of State Farm employees, associates, and agents have been helping customers recover from the devastating wildfires in Los Angeles. Many left their own families to be there for customers who were impacted. As the state’s largest private insurer, helping people is what we do. To date, we’ve handled more than 13,000 claims following the fires and paid customers more than $4.2 billion. As we continue to work with our customers through the claims process, we anticipate paying at least $2 billion more.

Our goal has always been to be part of a sustainable insurance market in California. For years, State Farm General has worked to help customers and support the insurance market in the state of California, continuing to provide coverage for more than 2.8 million policies, including more than one million homeowners. Over the last nine years, we have recorded more than $5 billion in underwriting losses in pursuing that effort. Here are the facts:
 

Our priority after the wildfires was to help our customers recover. That remains our priority.
 

• As of July 6, State Farm has received almost 13,000 claims related to the fires and paid over $4.2 billion to our California customers, more than any other insurer. 
   
• Given the magnitude of this event and its impact on so many families, we are still actively working with customers through the claims process. Anyone with a question or a concern should reach out to us.
   
• We evaluate each claim, including smoke claims, on a case-by-case basis. We’re committed to providing every customer all the benefits they have available through their policy.
   
• We are proud to have helped thousands of State Farm customers to date and committed to helping all of those customers impacted recover. 
   

State Farm has been committed to the state of California for almost a century.
 

• State Farm has had a presence in California since 1928 and currently serves almost 7.8 million policies in California. This includes 2.8 million residential and commercial fire policies served through our affiliate, State Farm General in California.
   
• State Farm General began providing property and commercial coverage in California in 1998 to manage the unique property risk exposure and regulatory environment in the state. State Farm has multiple affiliates so that we may serve as many customers as possible.
   

State Farm wants to continue serving California customers over the long term by stabilizing its financial condition.
 

• State Farm General submitted a rate increase to the California Department of Insurance in June 2024. That increase is a critical step to restoring the financial strength of State Farm General.
   
• Following the wildfires and the continued deterioration of capital from State Farm General, the Commissioner approved an emergency interim rate increase in May 2025.
   
• That increase must still be permanently approved through a formal rate hearing later this year and is only a portion of the original rate increase requested in June 2024.
   

Insurance will cost more for customers in California going forward because the risk is greater in California.
 

• In spite of the elevated risk and a unique regulatory environment, home insurance premiums in California have not matched price to risk and are below the national average. In fact, over the last nine years, State Farm General paid $1.26 for every premium dollar collected, resulting in over $5 billion in cumulative losses.
   
• State Farm and each of its affiliates, including State Farm General in California, operate on an individual entity-by-entity basis without regard to the financial condition of any other affiliated entity. It is the expectation of State Farm that each affiliate will, on an individual basis over the long-term, generate and maintain capital sufficient to support itself. Such capital is not freely transferrable among affiliated entities. A key to making insurance work is that each customer pays premium in line with the risk they present. Customers outside California are not paying for risks in California and they should not be expected to.