"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," Allstate spokesperson Michael Passman said in an emailed response to questions.
"The rate hike, which will take effect from November, will impact about 350,000 policyholders across California. 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.
The decision on Allstate follows a series of rate hikes for other insurers, including State Farm, which is seeking to raise its rates by an additional 30% after already securing a 20% increase earlier this year.
The rising premiums and reduced coverage are worsening the affordability crisis in California's housing market and driving more homeowners to turn to the state's FAIR plan, the last-resort insurer.
[
Collection
]
[
|
...
]