Allstate announces a major increase in home insurance rates

In 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 for a major insurer in the state in three years.

The mandated prices will affect about 350,000 insureds across California, where the property insurance crisis already exists, Bloomberg reports. Documents filed by Allstate show that premium changes will vary widely, with some seeing a hike of 650%, while others could drop as much as 57%.

In California, major insurers such as State Farm and Farmers Insurance have scaled back operations, blaming mounting financial pressures from wildfires and longstanding regulatory restrictions that have limited their ability to raise rates.

Allstate, meanwhile, suspended the issuance of new homeowner policies in the state through 2022, citing the growing financial risks in the market.

The San Francisco Chronicle, which first covered the upcoming adjustment, highlighted that the most significant increase was in 2021 when Homesite Insurance received approval for a 38.2% increase. According to the publication, Fresno, Madera, and Mariposa counties will see the largest jumps.

Allstate's move follows a series of similar changes by other insurers. State Farm, for example, is currently seeking a 30% increase after receiving a 20% increase earlier this year.

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