Allstate Is No Longer Offering New Policies in California
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.
Allstate, 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. 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.
California’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.
“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. “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.”
Source: The New York Times
