Austin KlarVanguard Properties · Lawyer Turned Real Estate Agent

Another Insurance Company Increases Policy Premiums in California

Name: Another Insurance Company Increases Policy Premiums in California
Uploaded: 2024-09-11T23:00:29+00:00
Duration: 53 s
Channel: Austin Klar
Description: In this YouTube monologue, Austin Klar reports that California's Department of Insurance has approved Allstate's request to increase homeowners insurance…

11 Sept 2024 · 1 min

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In this YouTube monologue, Austin Klar reports that California's Department of Insurance has approved Allstate's request to increase homeowners insurance premiums for about 350,000 existing policyholders, with an average hike of 34% and extremes ranging from a 650% increase to a 57% decrease. The insurer cites rising home values, higher repair costs, and more severe weather as justification. The changes will take effect in November. Allstate is not issuing new policies in California; it will only resume writing new business if the state adopts certain insurance reforms later in the year. Klar emphasizes that while rates are rising, coverage will remain available for current customers and promises to keep viewers updated on housing market developments.

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As if owning a home in California wasn't already expensive enough, it's about to become more expensive for hundreds of thousands of homeowners. The Department of Insurance has just signed off on a request by Allstate to raise insurance rates for 350,000 existing customers by an average of 34%, citing higher home values, higher repair costs, and severe weather as the reasons. Some owners are gonna have their rates increased by as much as 650%, while others are actually gonna see a decrease of about 57%. The changes are slated to go effect in November. And remember, Allstate isn't writing new policies in the state. This is just for existing customers. So at least it isn't mass canceling these policies. It's just that these rates are going up. So at least these people will still have insurance available. Allstate indicated it will only restart writing new policies in the state if certain reforms are adopted, which the insurance commissioner has indicated could happen later this year. We'll see. As always, I'll keep you updated. So follow me for more housing market updates.