It's been nearly five years since the River Fire tore through parts of Colfax, burning land and homes. Lizz Porter's family home was one of them.
"From a coverage standpoint, we have a lot more coverage with State Farm, a bit less than what we would be paying on the fair plan," Porter said.
This week, State Farm got state approval for an emergency rate hike after the company reported significant financial losses following the devastating wildfires in Los Angeles this January, which destroyed 16,000 buildings.
With peak fire season approaching, state officials fast-tracked the rate increase, which is unusual. Normally, rate hikes of this size go through a lengthy public hearing process before being approved. But in this case, regulators allowed it to move forward without that step, something insurance experts say has never happened before in California.
As part of the agreement, the state insurance commissioner says State Farm will not drop additional customers all at once. Still, many homeowners in fire-prone areas are already struggling to get State Farm coverage at all. Most rely on California's FAIR Plan, the state's insurer of last resort. While it's often the only option available, it tends to be more expensive and provides less coverage..
A formal hearing is expected as early as October to review whether the rate increase was justified. If a judge finds it wasn't, policyholders could receive refunds with interest.
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