SACRAMENTO, Calif. — 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.

State Farm has argued the emergency rate hikes are necessary to help the company avoid a “dire” financial crisis that could force it to drop more California policies. The state’s largest home insurer said it was struggling financially before this year but the LA fires, which destroyed more than 16,000 buildings, have made things worse.

The increase to take effect in June will apply to the roughly 1 million homeowners State Farm insures in the state. The request also includes a 38% hike for rental owners and 15% for tenants. — Associated Press