State Farm is asking California's insurance regulator to approve an emergency rate hike due to the number of claims it received after last month's devastating wildfires.

State Farm, the largest home insurer in California, is asking for an emergency rate hike from state regulators as it warns that multibillion-dollar payouts from the Los Angeles wildfires threaten its balance sheet and the broader insurance market.

State Farm Insurance is calling the Los Angeles wildfires the costliest disaster in its history of doing business. The company is requesting an emergency rate increase on all customers.