Another major insurer, Allstate, says it will no longer issue new home or property insurance policies in California.
The move follows State Farm’s announcement month that it would no longer offer new property insurance in California, citing the state’s wildfire risk and construction costs outpacing inflation.
Those who go to Allstate’s website and enter a California ZIP code are told the company does not offer property insurance there
Last year, California Insurance Commissioner Ricardo Lara submitted new insurance pricing regulations requiring insurance companies to provide discounts to consumers and other certain protections. Among them, insurance companies face a mandatory one-year moratorium on canceling or not renewing residential insurance policies in certain areas.
The protections also promised larger payouts for some consumer claims, less red tape from insurance companies, and more help for people under evacuation orders.
“My department is laser-focused on doing everything we can to protect consumers and hold insurance companies accountable,” Lara said last year. “My groundbreaking regulation will help more Californians find insurance they can afford. It aligns insurance discounts with fire safety actions being expedited by our state emergency leaders and local governments. And, most importantly, it will save lives by helping California become safer from wildfires.”
(Photo Getty Images)
Photo: Getty Images