The insurer and the state commissioner have agreed to reduce the rates for homeowners coverage.
Dave Jones, the California Insurance Commissioner, has now come to an agreement with Allstate Insurance Company and Allstate Indemnity Insurance in order to decrease the rates being paid by home insurance customers in the state.
In fact, the homeowners insurance rates for California Allstate customers will drop by an average of 12.6 percent.
For Californians who have home insurance through Allstate, this decision represents a decrease of an average of $230, each. The reduction in the rates will be applied retroactively, back to February 1, 2016. Also looking to benefit from this decrease in premiums will be the insurance company’s auto and other property and casualty policyholders. Allstate was required to file for permission from the state’s commissioner before it was able to lower its rates. This is the case for all insurers in the state who wish to raise or lower the amount paid by their customers.
The commissioner has now given his approval for the reduction in Allstate’s home insurance rates.
The nod was given after an assessment was made that determined that, despite the double-digit percentage decreases in homeowners insurance rates being requested by Allstate, it would still be capable of covering administrative expenses and expected claims, and would still provide the insurer with a return that is within reason. It is within the commissioner’s power to reject changes in rates that are considered to be excessive by that office.
The specific amount that will be taken off the premiums of a given Allstate customer in California will be determined by several different factors. These include the location of the property that is being covered by the policy, in addition to several other coverage features and individual risk characteristics.
Beyond that change in home insurance rates, the Commissioner Jones also gave its approval to Allstate for adding a new coverage option that will allow the insurer’s customers to choose a separate higher deductible for protection from wildfires, and/or a lower deductible for certain other types of risks, such as fire that is not linked to a wildfire situation, as well as burglary or water damage. That new option is meant to provide customers with greater control over the premiums they pay.