State Farm argued the rate hikes are justified due to the high risks the company has underwritten, particularly after premiums were kept artificially low.

State Farm is seeking emergency rate hikes of up to 38% for California homeowners, renters and landlords following wildfire losses.

State Farm, the largest insurance company in California, has asked state regulators to immediately approve a steep rate hike for homeowners to prevent a “dire situation” for its customers and the broader insurance market in the wake of the disastrous Los Angeles wildfires.