“Mansion Global” host Katrina Campins breaks down the housing market amid growing concerns about rising home prices on “The Big Money Show.”
Allstate, one of California’s largest insurers, wants to raise homeowners premiums by an average of 34%, which could be the biggest increase this year.
If approved by the state Insurance Department, the rate increases would affect more than 350,000 policyholders. Los Angeles Times.
Last year, the insurer applied for a 39.6 percent rate increase and successfully revised its request to 34.1 percent in January, the media outlet quoted the state Insurance Department as saying.
State Farm seeks big premium hikes as California’s insurance crisis deepens
An image of an Allstate Insurance sign taken on March 16, 2020 in Melville, New York. (Photo: Bruce Bennett/Getty Images)
Consumer advocacy group Consumer Watchdog has called on Allstate to provide homeowners with more data on why the big rate increases are necessary.
“Allstate uses secret algorithms to determine whether homeowners are at risk from wildfires and how much they should pay. We call on the company to explain its pricing and disclose to consumers exactly why their premium increases are happening,” Consumer Watchdog president Carmen Balber told the outlet.
A sign hangs at the entrance to an Allstate brokerage office in Chicago, Illinois, on February 7, 2024. Allstate Corp. today reported fourth-quarter earnings that beat Wall Street expectations. (Photo by Scott Olson/Getty Images) (Scott Olson/Getty Images/Getty Images)
Allstate’s rate increase request would exceed the 30% increase requested by State Farm last month.
Home insurance premiums have risen nearly 40% since 2019, with the fastest increases in these states:
Stocks featured in this article:
State Farm, California’s largest home insurer, said in March that it would not renew 72,000 property owners’ policies.
Their refusal to report joins that of Farmers and other local businesses.
California Insurance Commissioner Ricardo Lara is aiming to implement reforms to California’s insurance regulations by the end of the year. (Don Bartoletti/Los Angeles Times via Getty Images/Getty Images)
Many insurers are warning that they will leave California unless California Insurance Commissioner Ricardo Lara implements a survival strategy for the insurance industry.
Click here to get FOX Business on the go
Lara is looking at ways to reform insurance policies in the wildfire-prone state and hopes to have them in place by the end of the year to lure insurers back.
Fox News Digital has reached out to the state’s insurance commissioner and Allstate for comment.
