Mercury Insurance Wants 6.9% Rate Increase in California — Follows Verisk Wildfire Catastrophe Model

Mercury Insurance has asked the California Department of Insurance for a rate increase of 6.9%. The company said pressure from inflation and more exposure to wildfire risks are the reason for the high request. The request is based on the Verisk Wildfire Catastrophe model presented to the department a month or so ago.

How much rates are raised depend on where a home is in the state. Areas with lower risks could see rates drop rather than go up. Homes in high-risk areas are likely to see even higher rates.

Mercury says people can offset an increase if they take proactive steps to reduce wildfire risk to their home. That means clearing vegetation, doing an upgrade of vents leading into the house and using fire-resistant building materials on their homes.

Communities pushing risk-reduction measures could also see a reduction in the rate hikes. For both individuals and communities, rates could reduce premiums by a third.

Source link: Insurance Business America — https://bit.ly/45MPFOX

Source link: Insurance Journal — https://bit.ly/4oGUdio