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Allstate seeks to restart California homeowners policy sales after freeze
The request is linked to a 1.4% statewide rate increase, with regulators to decide how many customers see lower versus higher premiums.
Allstate has asked California regulators for approval to resume writing new homeowners insurance policies in the state after a freeze that has kept many customers from buying coverage from one of the largest carriers since November 2022, according to Insurance Business.
The filing submitted to the California Department of Insurance on Monday would tie the company’s return to new business to an overall 1.4% rate increase covering both new and existing homeowners customers. The insurer said roughly two-thirds of policyholders would see premiums fall, about 30% would face increases of up to 55%, and fewer than 4% would see rates rise between 55% and 185%, though the department can still adjust those figures before signing off.
If regulators approve, Allstate would be required to write a minimum of 2,064 new home insurance policies by July 2029, a small increase of about 0.6% relative to its current California book of just under 350,000 homes. A company spokesperson said Allstate is working with the Department of Insurance to create a plan that would expand homeowners insurance options for residents.
Insurance Business added that Allstate exited new California homeowners business in late 2022, citing worsening wildfire losses, higher construction costs and steeper reinsurance pricing. The article also noted Allstate secured an average roughly 34% rate increase for its California book in 2024, and that the insurer’s share of homeowners premium slipped from 6.07% in 2022 to 5.77% last year, according to state data.