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The Actual News

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Nearly 1 Million Californians Face Home Insurance Spike in Coming Months

Nearly 1 Million Californians Face Home Insurance Spike in Coming Months

Summary

California homeowners insured by Farmers Insurance will see an average 1.5% increase in their home insurance premiums starting after September 15. The state insurance department approved the increase as part of a new pricing plan that also offers more discounts and incentives for wildfire safety measures.

Key Facts

  • Nearly 915,000 California homeowners with Farmers Insurance are affected.
  • The average premium rise approved is 1.5%, lower than the 6.99% Farmers originally requested.
  • Premium changes may vary depending on discounts and wildfire risk efforts.
  • The increase follows California’s Sustainable Insurance Strategy to help insurers handle wildfire risks and costs.
  • Farmers had limited issuing new policies in early 2023 but lifted those restrictions after reforms.
  • New discounts include raising the home-and-auto insurance bundling discount from 15% to 22%.
  • Homeowners taking steps to reduce wildfire risks can get additional incentives.
  • California’s insurance market faces challenges from wildfires, rebuilding costs, and reinsurance expenses.
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