For six months, State Farm employees, associates, and agents have been assisting customers affected by the wildfires in Los Angeles. As California's largest private insurer, State Farm has handled over 13,000 claims related to the fires and paid more than $4.2 billion to customers. The company expects to pay at least $2 billion more as it continues processing claims.
State Farm emphasizes its commitment to being part of a sustainable insurance market in California. Despite recording over $5 billion in underwriting losses over nine years, the company maintains coverage for more than 2.8 million policies in the state, including one million homeowners.
"Our priority after the wildfires was to help our customers recover. That remains our priority," stated State Farm. They encourage anyone with questions or concerns about their claims to reach out.
The insurer evaluates each claim on a case-by-case basis and is committed to providing all available benefits under each policy. "We are proud to have helped thousands of State Farm customers to date and committed to helping all of those customers impacted recover," they affirmed.
State Farm has operated in California since 1928 and currently serves nearly 7.8 million policies there. State Farm General began offering property and commercial coverage in California in 1998 to manage unique property risks and regulatory challenges.
To stabilize its financial condition, State Farm General submitted a rate increase request to the California Department of Insurance in June 2024. An emergency interim rate increase was approved by the Commissioner in May 2025 following the wildfires.
"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," noted State Farm.
Insurance costs for Californians are expected to rise due to increased risk factors. Home insurance premiums in California remain below the national average despite these elevated risks. Over nine years, State Farm General has paid $1.26 for every premium dollar collected, leading to cumulative losses exceeding $5 billion.
Each affiliate within State Farm operates independently regarding financial matters without relying on other affiliated entities' conditions. The expectation is that each affiliate will generate sufficient capital independently over time.
"A key to making insurance work is that each customer pays premium in line with the risk they present," emphasized State Farm, clarifying that customers outside California are not subsidizing Californian risks.