"Farmers Insurance Group, California's second-largest home insurance company, is seeking a rate hike amid plans to lift a cap on the number of new homeowner polices it writes each month in the state. 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%."
"While regulators say the updates will alleviate California's insurance crisis, consumer advocates maintain the reforms will do little to help those most at risk of losing coverage. Farmers is doubling down on its commitment to California homeowners, expanding choice and availability for consumers across the state, Behram Dinshaw, Farmers' president of personal lines, which provide coverage of individuals and families, said in a statement."
Farmers Insurance Group will remove its monthly 9,500 cap on new California homeowner policies and has requested an average 6.99% statewide rate increase. The company first enacted a lower cap in 2023 as insurers retreated amid worsening wildfire seasons and rising construction costs. State regulators implemented the Sustainable Insurance Strategy to allow insurers greater ability to raise rates, prompting Farmers, Allstate and others to commit to expand writing policies. Consumer advocates caution that the reforms may not adequately protect households most at risk of losing coverage. State Insurance Commissioner Ricardo Lara characterized the shift as a major turning point.
Read at www.mercurynews.com
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