California Homeowners Facing Major Increases in Insurance Rates
California’s Department of Insurance approved Allstate’s request to raise rates by an average of 34 percent, the largest rate increase in the past three years.
Allstate is about to hike home insurance prices in California, with rate increases depending on where in the state the homeowner lives.
California’s Department of Insurance approved Allstate’s request to raise rates by an average of 34 percent, the largest rate increase in the past three years. The company cited the cost of insuring the homes as the reason for the rate hike.
Allstate is not the only company asking for a major rate hike. State Farm is also seeking the department’s approval for a 30 percent rate increase.
Much of the area expecting rate hikes is in the state’s central valley as well as along the coastline. Although the rate increase is sizable, average payments in California still trail behind states like Texas and Florida, or states along the Mississippi.
According to BankRate, Californians pay an average of about $1,500 a year for home insurance. In Florida, homeowners pay an average $5,500 a year and Texas homeowners pay about $4,000 annually.