USAA Home Insurance Rates Climbing for 265,000 California Homeowners

The agreement ends the class action lawsuit, but more legal issues remain for the automakers.

Chris Schafer
Written 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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Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
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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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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 November 18, 2024 at 4:00 PM PST | Reading time: 2 minutes

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Home insurance rates are about to increase dramatically for hundreds of thousands of California policyholders. State insurance regulators recently approved rate increases for two of USAA’s largest subsidiaries. USAA is the sixth-largest home insurer in California.

Rates will increase for home and condo policyholders

The California Department of Insurance approved USAA’s request for a 16% increase to homeowners policy rates and a 31% increase to condo owners insurance policies. Those rate increases should begin to appear in February, according to the filing.

The department also approved a request from its subsidiary, USAA Casualty Insurance Company, for rate increases of 25% and 40% for homeowners and condo owners insurance policies, respectively. Those new rates will appear in customers’ December renewal notices.

About 5.61% of Californians get their coverage from USAA or one of its subsidiaries. The rate increases will affect more than 234,000 home insurance policyholders and 31,000 condo policyholders.

Addressing ‘rate inadequacy’ and wildfire risk

While USAA serves a sizable portion of the California market, its growth has stagnated in recent years because of concerns surrounding the financial feasibility of expansion. USAA Casualty Insurance Company ceased writing new policies in California in April 2023 due to concerns surrounding “rate inadequacy,” according to its filing.

USAA also noted it’s still writing new policies but won’t write coverage for homes with a wildfire risk score greater than 1 (on its 32-point scale, with 32 having the highest risk).

USAA hasn’t said if it will increase the amount of business it does in California after receiving approval for these rate increases.

What’s Next? Reversing a continuing trend

USAA’s upcoming rate increases are just the latest development in a turbulent California insurance market.

In August, the CDI approved a 34% rate increase for Allstate home insurance policies, affecting 354,034 policyholders. Residents in Valyermo and other select areas saw their rates climb by $5,000 or more with that rate adjustment.

They’re not alone.

Rates across the state climbed 8% between 2023 and 2024, with the median home insurance rate now $1,921 per year, according to Insurify data.

The increases in home insurance rates aren’t exclusive to California either. Home insurance rates in Louisiana have climbed 23% this year, and Illinois, North Carolina, South Carolina, Montana, Utah, Michigan, and Maine have all seen double-digit rate increases in 2024.

Chris Schafer
Chris SchaferSenior Editor

Chris is Insurify’s Senior Editor for home insurance. He’s a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more. He is passionate about breaking down complex subject material to make important information accessible to everyone. 

Chris began his career as a journalist, managing two weekly newspapers, then moving into marketing and content marketing roles. Before joining Insurify, Chris served as the content strategy manager at Siteimprove and as the content manager at Brandpoint, where he managed a team of content creators. 

Away from work, Chris is an active hockey player and proud father of two rambunctious little girls. Chris holds a Bachelor’s degree in English with a minor in mass communications from the University of Minnesota. 

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