"The insurer announced this month that it will eliminate the monthly 9,500 policy limit, while asking for state approval to raise home insurance rates by an average of 6.99%. It's the latest move by a major provider to reverse a retreat from the fire-ravaged state in response to regulatory changes demanded by the insurance industry. While regulators say the updates will alleviate California's insurance crisis,"
"Farmers enacted the cap on new homeowner policies in 2023, initially at 7,500 a month. That same year, State Farm and Allstate paused writing new home coverage anywhere in California. Providers said the state's insurance regulations had kept rates artificially low, making it untenable to take on new customers amid more destructive fire seasons and rising construction costs. After state regulators began phasing in new rules late last year to make it easier for insurers to raise rates,"
Farmers Insurance plans to eliminate its monthly cap of 9,500 new homeowner policies in California while seeking statewide home rate increases averaging 6.99%. The company first imposed a cap in 2023 amid industry pullbacks by major insurers facing mounting wildfire losses and rising construction costs. California regulators have enacted the Sustainable Insurance Strategy to ease insurer rate approvals and restore market participation. Several insurers including Farmers, Allstate, Mercury, USAA and CSAA have committed to expand coverage. Consumer advocates warn the reforms may not adequately protect homeowners most at risk of losing coverage despite regulatory changes.
Read at The Mercury News
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