USAA Seeking Another 7% Home Insurance Increase in California

USAA, the seventh-largest home insurer in California, is seeking to raise rates by 7.3% for 2026, according to a recent filing with the California Department of Insurance (CDI). If approved, the rate increase would take effect next spring, affecting all USAA policies signed or renewed after April 30, 2026.

The increase would impact 350,000 California customers.

Insurer says it’s trying to keep pace with rising costs

“California’s insurance market continues to face pressure from rising home values, repair costs, and severe weather,” a spokesperson for USAA told the San Francisco Chronicle in response to the rate filing. “Despite these challenges, USAA has expanded its presence in California.”

Last month, Gov. Gavin Newsom identified USAA and four other insurers as having recommitted to the state.

The average USAA home insurance policyholder pays $2,428 per year for coverage in California, according to the filing. A 7% increase would add an additional $170 to that home insurance bill.

But rates could climb higher for more expensive homes or those in wildfire risk areas.

Customers in Malibu, for example, would pay $732 more per year, and some could pay as much as $4,800 more per year. Rates in Orinda would rise around $384 per year, with the largest rate increases resulting in a $1,700 annual increase.

What’s next? Latest in string of increases for USAA

This latest rate increase request marks the fourth by a unit of USAA this year in California. All have come since CDI reforms that allow insurers to use forward-looking catastrophe models to predict future risk.

USAA subsidiary Garrison Property and Casualty Insurance Company increased its home insurance rates by 26.8% and condo insurance rates by 25.4% in the first quarter of the year. The subsidiary insures 49,616 policies in California.

USAA Casualty Insurance, the company’s largest subsidiary with 116,312 policies in California, raised home insurance rates by 25% and condo insurance rates by 40% earlier this year. Meanwhile, USAA, the company’s second-largest subsidiary in California, brought rates up by 16% for homeowners and 31% for condo owners.

Finally, USAA General Indemnity saw the highest average annual rate increase this year, with home insurance rates climbing 30% and condo insurance rates climbing 60%. The company has 69,394 policyholders in California.

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