Allstate looking to raise California homeowners insurance premiums by average of 34%

LOS ANGELES (KABC) -- Allstate is looking to raise its California homeowners insurance premiums by an average of 34%, which would make it the largest rate hike of the year.

According to the state's Department of Insurance, Allstate filed for a 39.6 % increase last year before amending the request to 34.1% in January.

The insurer cited higher repair costs, frequent severe weather events and legal system abuse for the increase. The rate hike has the potential to affect more than 350,000 policyholders.

Allstate stopped writing new California homeowner insurance policies in November 2022, and last year, the company received approval for a 4% rate hike.

Consumer Watchdog President Carmen Balber is challenging Allstate's move.

"To be frank, it has been very difficult to get full disclosure from the company about the secret black box model that it uses to determine wildfire risk," she said.

Residents feel impact of skyrocketing rates

Hari and Diana Barnes, who live in Tujunga, said they've seen their home insurance premium cost go up over the last five years.

"Ours went from $1,000 a year to $10,000 a year," said Diana.

"We have shopped around. It's not for the best rate, it's for anyone who will insure us."

But Balber suggests those who are shopping for home insurance to consider the following:

"What kind of discount might I qualify for if I do things like replacing my roof, or clearing the brush and the trees around my home, can that reduce my insurance rate?"

Allstate's request remains under review.