California residents can expect sharp increases in their condo, renter, and home insurance rates in the coming months.
State Farm recently requested permission from state regulators to raise rates by 30% for homeowners, 52% for renters, and 36% for condo owners. Allstate Insurance just received approval to raise rates by an average of 34%. The increase is hitting some residents hard.
“Because of the fires around here, they say my home is in the fire zone. So they added $1,200 to it. So now, instead of $900 a month, it's $2,100. How do I pay that?” a homeowner, who asked not to be identified, asked CBS News.
While many are frustrated by the rate increases, some residents may lose their coverage entirely. State Farm, the largest insurance provider in California, disclosed its plans to drop coverage for 72,000 houses and apartments and will not issue new policies in the state. However, not all residents will be impacted.
“It’s not necessarily across the board. If you’re in a higher risk area, you may see a higher percentage,” Garrett Goo, who works for a State Farm Insurance branch, explained to CBS News.
California resident Glen Starkey has seen minimal increases in his rates by working to maintain his property and minimize risks. He’s never filed a claim and told CBS News, “I play ball with them. I won’t suffer like some of the other people who have been dropped and don't have the income.”
