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.

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.

State Farm will raise California insurance rates by up to 38% from 1 June, prompting backlash over affordability and lack of transparency. A review is due in October.