California State Farm policyholders will soon face a significant rate increase, as the Insurance Commissioner has approved a $749 million emergency interim rate hike following the Southern California wildfires.

State Farm has argued the emergency rate hikes are necessary to help the company avoid a “dire” financial crisis that could force them to drop more California policies.

Insurance Commissioner Ricardo Lara adopted an adminitrative law judge's recommendation Tuesday and granted State Farm General, the state's largest home insurer, a 17% emergency hike in its homeowners insurance rates.