Rate Hikes Coming in California — Are Homeowners Prepared?

Reality is hitting home again in California. Homeowners insurance rates are going to rise — and rise significantly.

Here’s an example of why.

State Farm — who left the state’s homeowners market — says it will return but wants a 30% rate increase for homeowners, a 52% increases for renters. That’s on top of 20% given to the company in December of last year.

Plus, some areas around San Francisco will get no coverage at all.

State Farm spokesman Garrett Goo said who gets coverage or not depends on the area. "It's not necessarily across the board. If you're in a higher risk area, you may see a higher percentage,” he said.

Allstate just got approval from the California Department of Insurance for a 34% hike. Other insurers are also seeking rate hikes that — actuarily — cover losses.

How much each will get depends but Californians can look for reality to hit — and hit hard — in the very near future.

Source link: Insurance Business America — https://bit.ly/4gcmrx7