Two large California home insurers will be raising rates for by an average of 6.9% this year, filings with the California Department of Insurance show.
CSAA will begin rate increases for nearly 481,800 homeowners starting in March. Mercury Insurance is expected to begin the rate hikes in July for more than 650,000 homeowners. Both companies are working with the California Department of Insurance to expand coverage in wildfire-prone regions of the state.
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The rate increases were approved under the Sustainable Insurance Strategy, which is intended to keep carriers from continuing to withdraw from the wildfire-prone state. In return for expedited rate filings, carriers agreed to write insurance in areas of the state that were shunned due to higher wildfire hazards.
Farmers Insurance in late November announced it would eliminate a cap on the number of homeowners insurance policies it offers in California. Thee cap removal was made in anticipation of an improved homeowners insurance market in California, according to the carrier. Farmers homeowners offerings had been capped at 9,500 new policies per month.
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Farmers said the improved conditions are due to the adoption of the state’s Sustainable Insurance Strategy.
Both Mercury and CSAA are offering discounts for homeowners who take measures to protect their homes from wildfires. Mercury offers discounts that can reduce wildfire premiums by up to a third.
Topics California Carriers Numbers Homeowners
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