According to California Department of Insurance (CDI) filings, Farmers Insurance and 21st Century Insurance have requested premium hikes averaging 6.9 percent for their property policies. Farmers Insurance and 21st Century Insurance have requested increases, which could raise individual homeowner rates as much as 15 percent.
The companies are attributing the hike request to higher repair costs and the fact that claim costs reflect the rising cost of building and fixing homes.
Farmers Insurance executive Jerry Carnahan explained to the Los Angeles Times that the issue is not an increase in claims, but that individual claims are more expensive. The rates are expected to rise most significantly in Orange and San Diego counties where the cost of repairs are especially high.
State regulators must still approve the increase.
Topics Trends Pricing Trends Agribusiness
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