A second major insurance brand has said they will stop issuing new home insurance policies in California. Like State Farm recently announced, Allstate has said it will no longer insure California homeowners due to environmental concerns and rising costs.
“We paused new homeowners, condo and commercial insurance policies in California last year so we can continue to protect current customers,” a statement from Allstate read. “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.”
The company originally made the announcement during its 2022 third quarter earnings report, though it went largely unnoticed among the financial details.
Allstate was the fourth-largest insurer in California, earning $4.3 billion in premiums in 2021 and incurred $2.6 billion in losses.