If State Farm’s recent homeowners insurance rate hike is any indication, homeowners insurance rates in California will be going up significantly in 2024.
As you know, State Farm isn’t going to be writing any new homeowners policies in the Golden State in the future. However, the company still has clients it will continue to serve.
Considering the now approved 20% rate hike, how long is anybody’s guess.
An unnamed spokesperson for State Farm said the 20% average, department of insurance approved rate “adjustment” will start on March 15th. The increase is necessary because State Farm recorded an 84% homeowners loss ratio in the first nine months of 2023.
“These rate changes are driven by increased costs and risk, and are necessary for State Farm Mutual Automobile Insurance Company and State Farm General Insurance Company to deliver on the promises the companies make,” the spokesperson said.
Look for increases greater than 20% in higher risk areas.
Critics are saying some of those areas might see as much as a 50% jump in their homeowners insurance rate. Consumer Watchdog head, Harvey Rosenfield said State Farm also raised renters rates 11% on average.
Meanwhile, in spite of approving the increase, the California Department of Insurance affirmed Insurance Commissioner Ricardo Lara’s stance that the department will be “protecting consumers and using every tool at the Department’s disposal to make sure policyholders do not pay more than they are required.”
State Farm is California’s largest homeowners insurance insurer. It owns 8.7% of the state’s homeowners business.
Source link: Insurance Business America — https://bit.ly/3vs0uax