The state of California approved State Farm's request for an emergency 17% increase in homeowners insurance rates as the company deals with financial challenges after the LA wildfires.

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.

Following a judge's ruling Monday, State Farm customers in California are one step away from paying more on their homeowners insurance to alleviate what the company described as a "dire" financial situation in the wake of the Los Angeles-area wildfires.