ASI Policyholders Face Steep 30% Homeowners Rate Increase in 2025

Insurer also plans to drop over 5,000 policies due to wildfire risks.

Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

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Chris Schafer
Edited byChris Schafer
Chris Schafer
Chris SchaferSenior Editor
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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John Leach
Reviewed byJohn Leach
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John LeachSenior Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 8+ years editing experience

John leads Insurify’s copy desk, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

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Published December 8, 2024 at 4:00 PM PST | Reading time: 2 minutes

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California homeowners with ASI Select insurance policies could see their premiums jump by 30% when their policies come up for renewal in 2025. On Nov. 26, the California Department of Insurance (CDI) approved ASI’s request for the double-digit rate increase that will affect more than 36,000 homeowners in the Golden State.

The rate hike will increase annual premiums for ASI customers by $339 to $882. ASI’s average annual premium will go from $1,907 to $2,480, according to the insurer’s filings with the CDI.

Additionally, ASI plans to non-renew 5,484 policies in areas with high wildfire risks.

Homeowners facing the biggest increases

While most affected policyholders will see rate increases of 30%, some will face significantly higher hikes. For 524 policyholders, rates will increase more than 30%, with 45 homeowners facing rate increases of 35% to 38%.

Policyholders in Playa del Rey, a neighborhood of Los Angeles, will experience the largest premium increases under ASI’s approved rate change. They could see their policy costs increase by as much as $3,154 — reaching an annual premium of $11,655.

Beverly Hills residents face the second-highest average increase, at $2,544.

What’s next: Rates will continue to rise

Climate catastrophes and inflation are pushing home insurance rates higher across the country. In California, the average annual cost of homeowners insurance was $1,782 in 2023, according to a report by Insurify. And Insurify data analysts predict rates will rise 8% in California through 2024.

California’s insurance market has been in crisis for years, with high construction and materials costs and escalating risks from severe weather and wildfire prompting some insurers to cut back on how much business they do in the state. Other insurers left California altogether. Insurers that have stayed have begun seeking — and obtaining — double-digit rate increases.

California Insurance Commissioner Ricardo Lara launched the state’s Sustainable Insurance Strategy in 2023 in an effort to stabilize the state’s insurance market.

Under the plan, regulators granted insurers approval to use predictive modeling — computerized processes that simulate thousands of possible natural catastrophes — to help set rates. In exchange, insurers must commit to writing at least 85% of their business in areas state regulators classify as “distressed” due to a high number of properties covered by the state’s insurer of last resort, high wildfire risks, and other factors.

Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content

Evelyn Pimplaskar is Insurify’s director of content. With 30-plus years in content creation – including 10 years specializing in personal finance – Evelyn’s done everything from covering volatile local elections as a beat reporter to building fintech content libraries from the ground up.

Before joining Insurify, she was editor-in-chief at Credible, where she launched and developed the lending marketplace’s media partnership’s content initiative and managed the restructuring of the editorial team to enhance content production efficiency. Formerly, as tax editor for Credit Karma, Evelyn built a library of more than 300 educational articles on federal and state taxes, achieving triple-digit year-over-year growth in e-files from organic search.

Her early career included work as a content marketer, vice president and managing officer of a boutique public relations agency, chief copy editor for 14 weekly Forbes publications, reporting for large and mid-sized daily newspapers, and freelancing for the Associated Press.

Evelyn is passionate about creating personal finance content that distills complex topics into relatable, easy-to-understand stories. She believes great content helps empower readers with the information they need to make important personal finance decisions.

Chris Schafer
Edited byChris SchaferSenior Editor
Chris Schafer
Chris SchaferSenior Editor
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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John Leach
Reviewed byJohn LeachSenior Insurance Copy Editor
Photo of an Insurify author
John LeachSenior Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 8+ years editing experience

John leads Insurify’s copy desk, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

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