Allstate Home Insurance Rates To Increase 34% This Fall

CALIFORNIA — Homeowners insured by Allstate with see their premiums spike an average of 34 percent in November after the company received state approval for the hike, according to recent reports detailing the latest development in the California insurance crisis.

Regulators cleared the increase in August, according to the Los Angeles Times, which reported the change will affect over 350,000 California policyholders. The company initially sought a 39.6 percent hike but amended it to 34.1 percent in January, the Times reported, with Allstate citing rising home values and repair expenses as well as increasingly severe weather as the sources of the higher rates.

Under the new premiums, some homeowners could see a decrease of up to 57 percent, however at least one will experience an almost 650 percent jump, according to the San Francisco Chronicle. Napa and Sonoma counties will be hit especially hard, with the Sonoma County zip code 95442 going up 164 percent on average, the Chronicle reported.

Allstate stopped writing new home policies in late 2022 in California but agreed not to conduct any mass policy nonrenewals through late January as part of the latest increase, according to the Times.

The company has said that if the state adopts its Sustainable Insurance Strategy plan Allstate will return to writing new policies, the Times reported. The actions included in the strategy are expected to allow companies to raise prices even higher, according to the Chronicle, but insurers will be asked to offer more policies for hard-hit areas in exchange.