California Commissioner Orders State Farm to Reduce Homeowner Rates

November 8, 2016

California Insurance Commissioner Dave Jones on Tuesday issued a decision requiring State Farm Insurance Co. to reduce its dwelling insurance rates by an average of 7.0 percent, resulting is $78.6 million in annual savings for California policyholders.

State Farm requested a rate increase of 6.9 percent. Based on the evidence presented during a rate filing public hearing, Jones determined that rates charged by State Farm were excessive.

Jones is ordering State Farm to reduce its homeowner insurance rate by an average of 5.37 percent, its renter insurance rate by an average of 20.39 percent, and its condominium insurance rate by an average of 13.81 percent. The total average is 7.0 percent.

“After considering the evidence and actuarial analyses submitted, I concluded State Farm’s homeowner, rental and condo insurance rates are excessive,” Jones said in a statement.

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