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.

California’s insurance commissioner says the tradeoffs involved in managing wildfire risk have made his position politically toxic.

State Farm can start increasing its homeowner rates in California by 17 percent from June 1 following approval from the state's insurance commissioner.