Another insurance company is dropping property insurance in California. Allstate says it’s too expensive to insure new home customers in California. The company blames wildfires, higher costs to repair homes, and higher reinsurance premiums. State Farm made a similar announcement last month. According to Cal Fire, seven-thousand-490 wildfires burned in California in 2022, damaging or destroying 876 structures. Last year, the California Insurance Commissioner submitted new regulations, requiring insurance companies to provide discounts to consumers and other protections, including larger payouts and less red tape. Insurers say the new rules make it more challenging to quickly adjust prices during high inflation.
KSRO’s Michelle Marques spoke with State Senator Bill Dodd, member of the California Senate Committee on Insurance, regarding this move by Allstate.