Allstate receives approval for 34% increase in homeowners insurance rates

Charred mailboxes remain standing along Pentz Road in Paradise, a community that was almost completely destroyed by the Camp fire in 2018. Allstate has received approval to raise its California homeowners insurance premiums by an average of 34% starting in November — the largest rate increase this year amid the state’s insurance crisis. The sixth-largest homeowners insurer in the state, Allstate first filed for a 39.6% rate increase last year and in January amended its request to 34.1%, according to the state Department of Insurance. “This home insurance rate approval allows us to continue protecting our existing customers as we work with the California Department of Insurance to improve coverage availability and create a more viable and sustainable homeowners insurance market for consumers in the state,” Allstate said in a statement that cited higher home values and repair costs and more severe weather as causes of the rate increase. The decision by State Farm to not renew the policies despite receiving its 20% rate increase was a key factor in prompting Consumer Watchdog to seek a moratorium on nonrenewals from Allstate, Balber said.