It did so in 1994, after the Northridge earthquake. It’s not the first time Allstate limited the sale of new homeowner insurance policies in California. In the statement, Allstate cited other factors in pausing new policies in California, including state regulations and inflation, which has led to higher costs for rebuilding. In Florida, most large insurance companies have pulled out of the state, with homeowners relying on smaller private companies, whose resources are being stretched, to protect their homes in the face of severe storms that have become typical. The news was earlier reported by The San Francisco Chronicle and in industry publications.Īllstate’s decision in California follows a pattern seen across the United States in which insurance companies are raising rates, restricting coverage or ending business altogether in areas vulnerable to climate change and natural disasters.
“The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes and higher reinsurance premiums.” “We paused new homeowners, condo and commercial insurance policies in California last year so we can continue to protect current customers,” the Allstate statement said. It is the latest insurance giant to say it will no longer offer coverage, citing worsening climate and higher building costs that have made it harder to do business in the nation’s most-populous state.Ĭalifornia’s largest homeowner insurance provider, State Farm, made a similar decision last week, pointing to “rapidly growing catastrophe exposure.” Allstate stopped accepting new policies in the state last year, according to the statement. California property owners hoping to open new insurance policies are no longer able to do so with one of the nation’s largest homeowner insurance companies.Īllstate, the state’s fourth-largest property and casualty insurance provider, has stopped selling new home, condominium or commercial insurance policies in California, the company said in an emailed statement.
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