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.

The state insurance commission is allowing the insurer to raise rates due to financial distress caused by $7 billion in claims from Los Angeles County fires. Rates will rise an average of 17 percent for homeowners.

Insurance Commissioner Ricardo Lara adopted an administrative 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.