State Farm has requested emergency rate increases of up to 38% in California, citing wildfire-related losses. Here’s what homeowners need to know.

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 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.