Allstate, one of California’s largest insurers, is set to raise rates by an average of 34.1% after receiving approval from the California Department of Insurance.
The rate hike would impact more than 350,000 policyholders statewide come November. Some customers will face premium increases of up to 650%, while others may see their rates drop by as much as 57%, according to company filings reviewed by Bloomberg.
“This home insurance rate approval allows us to continue protecting our existing customers as we work with the California Department of Insurance to improve coverage availability and create a more viable and sustainable homeowners insurance market for consumers in the state. Higher home values and repair costs coupled with more frequent, severe weather lead to higher payments to help customers recover, so we need to adjust rates to better reflect the cost of protecting our customers,” company officials said in a statement to KTLA.
Allstate is the state’s fourth-largest property and casualty insurance provider, representing about 5.5% of the overall market as of last year, according to the Department of Insurance.