Recent analysis shows that Californians are facing skyrocketing homeowners insurance premiums due to increased wildfire risks, particularly in areas near undeveloped vegetation. State Farm and other insurers utilize wildfire catastrophe models to adjust rates based on location, leading to severe premium hikes in vulnerable regions, with some areas around San Diego seeing an almost threefold increase since 2020. The California Department of Insurance acknowledges a lack of transparency regarding how these risk scores are calculated, making it difficult for consumers to understand the factors contributing to their insurance costs. State Farm has proposed a 30% overall rate increase, reflecting mounting financial pressures amid ongoing wildfire threats.
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