Allstate announces massive home insurance rate increase
Allstate announces massive home insurance rate increase | Insurance Business America
Property
Allstate announces massive home insurance rate increase
It’s the biggest jump in premiums in three years
Property
By
Terry Gangcuangco
Come November, Allstate will be raising home insurance premiums for policyholders in California by an average of 34.1%, representing what has been described as the most significant rate increase by a major insurer in the state over the past three years.
The approved prices will affect around 350,000 insureds across California, where a property insurance crisis already exists, Bloomberg reported. Documents filed by Allstate indicate that the premium changes will vary widely, with some seeing hikes as steep as 650%, while others could experience decreases of up to 57%.
In California, major insurers such as State Farm and Farmers Insurance have scaled back their operations, blaming the growing financial pressures from wildfires and longstanding regulatory constraints that have limited their ability to raise rates.
Allstate, meanwhile, halted the issuance of new homeowner policies in the state in 2022, attributing its decision to the increasing financial risks in the market.
The San Francisco Chronicle, which first covered the upcoming adjustment, highlighted that the last notable increase was in 2021 when Homesite Insurance received approval for a 38.2% hike. According to the publication, Fresno, Madera, and Mariposa counties will see the biggest jumps.
Allstate’s move follows a series of similar changes by other insurers. State Farm, for instance, is currently seeking an additional 30% bump after already securing a 20% increase earlier this year.
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