Allstate Wants To Hike Insurance For CA Homeowners By 34%

CALIFORNIA — Allstate is seeking to increase home insurance rates in California by an average of 34 percent in what would be the steepest hike in years and affect over 350,000 policyholders, according to reports.

While 34 percent is the average for the proposed increase, some could see rates drop nearly 60 percent, but most would see them rise, and at least one homeowner could experience a jump of almost 650 percent, the San Francisco Chronicle reported.

“Our payments to help California residents recover from accidents and disasters have increased significantly in recent years due to higher repair costs, more frequent and severe weather and legal system abuse,” an Allstate spokesperson told the newspaper in a statement.

Allstate is hardly alone, as State Farm, California’s largest provider, is pursuing a 30 percent premium hike, the Los Angeles Daily News reported, noting both Allstate and State Farm have stopped writing new home policies in the state.

California’s insurance department is reviewing Allstate’s request and will have the final say over the increase, according to the Daily News, which added Consumer Watchdog is appealing the proposed hike. If the three involved parties can’t agree on an increase, the state or Consumer Watchdog could seek a hearing with an administrative law judge, the Chronicle reported.

California insurance regulators are developing a plan to let providers raise rates based on the growing climate change threat in exchange for more coverage in areas of the state with the highest risk for wildfires, according to the Daily News.