State Farm General, California’s largest insurance provider, has requested an emergency 22% rate increase for homeowners, citing financial strain after last month’s Los Angeles wildfires.

The company has already paid over $1 billion in claims and warns that costs will continue rising, making the increase necessary to maintain its ability to cover future claims. California’s Insurance Commission is reviewing the request but has raised concerns about State Farm’s financial stability.

Meanwhile, homeowners in high-risk areas face skyrocketing insurance costs or are left relying on the state-backed FAIR plan, which offers less coverage at higher prices.