California Multifamily Property Insurance

Q: How are insurance costs changing in California?
A: In May, California’s Insurance Commissioner approved an emergency rate hike request from State Farm in exchange for the provider refraining from expanding policy non-renewals later this year. The hike, taking effect June 1, will allow State Farm to raise premiums on multifamily property owners by up to 38 percent. Homeowners’ policies could rise by as much as 15 percent, while the cost of condo and renters’ insurance could increase by 17 percent. This approval reiterates multifamily property owners’ concerns surrounding the rising cost of multifamily insurance, especially as the state recovers from a series of historically damaging wildfires — including the Palisades and Eaton fires — at the start of 2025.