Calif. insurers get rate-hike approval as state tries to keep insurers from leaving

by LaDonna Azagra

California has recently approved significant rate hikes for several major insurers, with increases up to 26.9% for the General Insurance Company and up to 20% for State Farm and the Interinsurance Exchange of the Automobile Club. These approvals are part of the state's strategy to retain insurers amidst rising risks from natural disasters and economic pressures. Over the past six months, the California Department of Insurance has reviewed 20 rate hike requests, approving 10 to ensure homeowners can maintain essential coverage required for their mortgages.

For homeowners, these rate increases mean higher premiums, impacting monthly budgets but ensuring continued coverage. To navigate these changes, homeowners should review their policies, shop around for competitive rates, mitigate home risks, and consult with insurance experts. While challenging, these measures are vital for stabilizing the insurance market and maintaining necessary protection for homes and financial security in California's evolving landscape.