California Insurance Commissioner Ricardo Lara gave the green light to State Farm‘s emergency request to hike rates after the company suffered billions of dollars in losses due to the fires that devastated Los Angeles earlier this year.

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.

Homeowners insured by State Farm in California will see a 17% increase in their premiums starting next month. This hike comes after State Farm claimed it was necessary to avoid a "dire" financial crisis following the Los Angeles fires.