State Farm Homeowner Insurance Spike

I just read this and I cannot believe it?! There are plenty of houses that pay homeowner insurance but haven’t spent a dime yet. Also, their CEO makes more than $25 million each year. I don’t understand why they don’t have money and are having us overpay?! I needed to vent, but also, what other homeowner insurance options should I look at?

“State Farm General, California’s largest insurance provider, has requested an emergency interim rate hike averaging 22% for homeowners from state officials on Monday, citing a ‘dire’ financial situation after destructive Los Angeles wildfires last month.”

They are pricing in the risk. You are dealing with multimillion-dollar homes that are at a huge fire/wind risk. California is just f*cked.

Contact a local insurance broker who can help you shop multiple carriers. I recently did this and saved $500/year on my home insurance.

@Fin
Yup 100%. If it was some regular neighborhood, it wouldn’t rise as much. But it had to be the wealthier spots.

@Fin
Thank you!

@Fin
Shop multiple carriers? Which carriers?

Allstate, Farmers, USAA, Travelers, Nationwide, and last I heard even Lloyds have all stopped writing new policies. State Farm too, though they are still renewing existing policies so the OP is lucky to have that option. I believe AAA will still write new policies in lower fire risk areas but only as part of a bundle with car insurance.

@Kerr
There may be some niche, smaller carriers. I’m familiar with the coastal NC market, which has insurance issues as well. All the policies I see here are from smaller companies I’ve never heard of.