State Farm says the steep hike on homeowners is necessary to shore up its cash reserves in the event of another catastrophe. The insurer has said it expects to pay out about $7.6 billion in claims related to the Los Angeles wildfires, although reinsurance will lower its losses to about $612 million.

California Insurance Commissioner Ricardo Lara said he plans to approve a 22% emergency rate increase for State Farm policyholders, pending a public hearing next month, in a move aimed at stabilizing the state’s insurance market after the Los Angeles area’s devastating wildfires.

California insurance regulators have “provisionally approved” State Farm’s request for a massive rate hike for homeowners following the devasting Los Angeles wildfires. On Friday, Insurance Commissioner Ricardo Lara announced he will allow State Farm to raise homeowners’ rates by an average of 22%.