Starting in November, Allstate will raise home insurance premiums for California policyholders by an average of 34.1%, marking what is being described as the largest rate increase by a major insurer in the state in the past three years.

The approved rates will affect about 350,000 insureds across California, where there is already a property insurance crisis, Bloomberg reported. Documents filed by Allstate indicate that premium changes will vary widely, with some seeing sharp increases of up to 650%, while others could see drops of up to 57%.

In California, major insurers like State Farm and Farmers Insurance have scaled back operations, citing growing financial pressures from wildfires and long-standing regulatory restrictions that have limited their ability to raise rates.

Meanwhile, Allstate has stopped issuing new homeowners insurance policies in the state in 2022, citing increased financial risks in the market.

“Rising home values ​​and repair costs coupled with more frequent and severe weather are leading to higher payments to help customers recover, so we need to adjust rates to better reflect the cost of protecting our customers,” company spokesman Michael Passman said in a statement.

The San Francisco Chronicle, which first covered the upcoming change, highlighted that the last significant increase was in 2021 when Homesite Insurance was approved for a 38.2% increase. Fresno, Madera and Mariposa counties will see the biggest jumps, according to the publication.

Allstate’s move follows a series of similar changes by other insurers. State Farm, for example, is now seeking an additional 30% increase after already getting a 20% increase earlier this year.

The California Department of Insurance is still evaluating State Farm’s latest application, with Insurance Commissioner Ricardo Lara raising concerns about the company’s financial health.

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