Allstate Gets OK for 34% Home Insurance Hike in California

More than 350K homeowners could see steep premium increases in next 12 months.

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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MacKenzie Korris
Reviewed byMacKenzie Korris
MacKenzie Korris
MacKenzie KorrisInsurance Copy Editor

MacKenzie Korris is an insurance copy editor with years of experience in print and digital media. He strives to craft actionable, inclusive copy that fosters smart decision-making through reader autonomy. He has a journalism degree from Saint Louis University.

Published September 11, 2024 at 5:00 PM PDT | Reading time: 2 minutes

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Allstate customers in California will see their home insurance premiums rise when their policies next come up for renewal, under a rate increase the state Department of Insurance approved in August.

The approval, for a 34% increase in Allstate’s home insurance rates, will affect 354,034 policies, according to documents the insurer filed with state regulators. Policyholders will begin to see increased rates with their next renewal notice.

With wildfire-related losses straining many California insurers’ profitability, Allstate is also launching more than a dozen discounts for homeowners who make home improvements and take actions that can reduce their wildfire risks.

Annual premium increase of over $5,000 for some

While the average approved rate increase is 34%, many policyholders will see larger increases, depending on where they live, Allstate’s filing documents show.

Residents of Valyermo (ZIP code 93563) with Deluxe and Select Value policies will see the largest annual dollar jump: $5,130, on average. Homeowners in Hornitos (ZIP code 95325) with the same type of policies face the highest average percentage increase, at 405%. Residents in ZIP code 95441 (Geyserville, Jimtown, Mercuryville, Nervo, and Las Lomas) will face the greatest dollar increase among Allstate customers with Deluxe Plus policies. They’ll see an average annual hike of $5,051.

Wildfire mitigation discounts available

Policyholders may be able to reduce their premium increases by taking advantage of the insurer’s new Wildfire Mitigation Discounts program. Allstate will offer community- and property-level discounts for property owners who take steps to mitigate wildfire risks, including:

  • Clearing under decks

  • Clearing vegetation from within 5 feet of structures

  • Using non-combustible building materials

  • Building or refurbishing with fire-resistant roofing materials and vents

The majority of the properties most affected by Allstate’s rate increase are in areas with high to severe fire risks.

What’s next?

Allstate’s rate-filing application requested an effective date of April 1, 2024, so affected homeowners will likely see increases the next time their home insurance policy comes up for renewal.

That said, California is far from the only state facing escalating home insurance costs. The national average annual cost of home insurance increased nearly 20% since 2021, Insurify data shows. Insurify’s data scientists predict a 6% national increase in 2024.

Some states, though, may face very steep increases, according to Insurify’s Insuring the American Homeowner report. Louisiana faces the highest potential increase: 23%. Illinois, North Carolina, South Carolina, Montana, Utah, Michigan, and Maine also face double-digit increases, ranging from 10% to 14%, Insurify predicts.

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.

Featured in

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MacKenzie Korris
Reviewed byMacKenzie KorrisInsurance Copy Editor
MacKenzie Korris
MacKenzie KorrisInsurance Copy Editor

MacKenzie Korris is an insurance copy editor with years of experience in print and digital media. He strives to craft actionable, inclusive copy that fosters smart decision-making through reader autonomy. He has a journalism degree from Saint Louis University.