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.

California’s top insurance regulator said Tuesday that State Farm can soon start raising premiums by 17% for all of its home insurance customers in the state to help the insurer rebuild its capital following the Los Angeles wildfires.

Following a judge's ruling, State Farm customers in California are one step away from paying more on their insurance to alleviate the company's "dire" financial situation after the Los Angeles fires.