If approved, it’s unclear how much premiums could go up in the Bay Area or which parts of the region would see the largest rate hikes, which could take effect as early as June 1 for many homeowners. Statewide, the insurer covers roughly 15% of homes, totaling more than 1 million customers.

The insurance company says its finances are strained because of the Eaton and Palisades fires, from which it expects to pay more than $7 billion in claims.

The California Department of Insurance held a hearing Tuesday to determine whether to approve State Farm's requested rate hike, which could increase premiums by as much as 38%.