Allstate seeking 34% rate increase for California homeowners insurance

[Zorro]

Allstate is seeking to raise its California homeowners insurance premiums by an average of 34% — which would be the largest rate increase this year amid the state’s insurance crisis.

If approved by the state’s Department of Insurance, the rate hike would affect more than 350,000 policyholders and would exceed a 30% increase sought last month by State Farm, the state’s largest homeowners’ insurer.

The sixth-largest homeowners insurer in the state, Allstate first filed for the increase last year and it could be trimmed by state regulators.

Allstate stopped writing new California homeowner insurance policies in November 2022, citing the devastation caused by wildfires and rising reinsurance and home reconstruction costs.

https://www.latimes.com/business/story/2024-07-11/allstate-seeking-34-rate-increase-for-california-homeowners-insurance

[jimfields33]

1. Florida residents feel your pain.

[Envirogal]

2. So they get to raise rates

On existing policy holders but not going to write any new policies? How does the state benefit from that cherry picking and exploitation? These companies are using this crisis to hold states hostage because it’s getting harder to get insurance. State Farm and Allstate have already pretty much pulled out of California home insurance other than the existing customers they have. So why do they get to boost their profits when they’ve already taken a huge chunk of risk off their books by not writing new policies?

You’re an insurance company and you want California business and all the so-called “lucrative” areas like car insurance, then you need to be a comprehensive company and cover all services. If not, nationalize insurance in the wake of climate change with a “public option”. Because the government already comes in for disasters so they should be able to sell policies proactive policies, too.