2 insurance companies received approval to raise rates
State regulators have given two insurance companies the approval to raise rates for thousands of customers across California.
Beginning in late March, homeowners, condo owners and dwelling rental policyholders with Mercury General, the fifth-largest home insurer in the state, will see rates raised by 12% on average.
About 579,300 customers will be impacted.
California Insurance Commissioner meets with State Farm regarding rate hike request
Additionally, customers who have home insurance with Safeco, a subsidiary of the fourth-largest insurer Liberty Mutual, will see rates rise by an average of 7.2% in May. About 86,700 customers are affected.
Liberty Mutual's rate hike won't impact condo owners or renters since the company announced last year plans to exit the condo and renters' insurance markets in 2026 as it seeks 'a sustainable business path forward in California.'
Customers at either insurer can expect the rate hike to impact their individual premiums on their next renewal following the rate's effective date.
Can California's broken homeowners insurance system be fixed?
According to filings with the California Department of Insurance, both companies also submitted rate hike requests in June, months before the recent deadly and destructive wildfires in Southern California.
According to the Department of Insurance, insurers, including the FAIR Plan, had paid $6.9 billion in wildfire claims as of Feb. 5.
The FAIR Plan is California's plan that provides insurance to homeowners who can't get private coverage.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a day ago
- Yahoo
California Regional MLS Launches Property Guardian InsurAble to Help Agents Address Wildfire-Related Insurance Challenges
CHINO HILLS, Calif., June 9, 2025 /PRNewswire/ -- California Regional MLS (CRMLS), the most recognized multiple listing service in the nation, announced today the launch of Property Guardian InsurAble, a wildfire risk and insurance assessment tool, for all CRMLS users. In California's high-risk wildfire zones, insurance uncertainty is derailing real estate transactions. Buyers often discover too late that a property is uninsurable or prohibitively expensive to cover, causing deals to stall or fall apart. Property Guardian InsurAble empowers agents and buyers with the clarity they need before an offer is made to help keep transactions on track. "Wildfires have become an increasingly frequent and devastating threat across California, which means matters of insurance only get more complicated," said Art Carter, CEO of CRMLS. "Property Guardian's InsurAble tool helps CRMLS users have smarter conversations, protect their clients, and close with more certainty." Key capabilities include: Insurance availability at a glance – Understand how insurable a property is across admitted, excess & surplus, and FAIR Plan markets, with premium estimates and risk drivers. Customized mitigation guidance – Property-specific recommendations based on IBHS standards to reduce risk and potentially lower insurance costs. In-depth wildfire risk insights – Layered analysis of a property's wildfire vulnerability including structure, parcel, community, and regional factors, plus ember reach and historical wildfire footprints. Insurance support – Optional referral to a licensed insurance broker for quote assistance and expanded market access. "InsurAble is not just about identifying wildfire risk; it's about helping agents guide their clients through it," said Pat Blandford, Founder and CEO of Property Guardian. "By showing insurance availability upfront and connecting buyers to real broker support, agents can keep deals moving and help clients make smarter, more confident decisions." Built by wildfire mitigation experts, insurance underwriters, data scientists, and NFPA-certified firefighters, Property Guardian brings together advanced analytics with boots-on-the-ground expertise. Trusted by carriers, the tool now equips real estate professionals to be local experts on insurability and resilience. CRMLS users can access discounted Property Guardian InsurAble assessments now through the CRMLS Marketplace. About California Regional Multiple Listing Service (CRMLS)California Regional MLS is the nation's most recognized subscriber-based MLS, dedicated to servicing more than 100,000 real estate professionals from dozens of Associations, Boards, and MLS organizations. CRMLS is the industry powerhouse and thrives on providing the most relevant products and services to its subscribers. For more information on CRMLS, visit About Property Guardian Powered by Green Shield Risk Solutions, Property Guardian helps make the world more insurable through advanced technology, expert insights, and strategic partnerships. We deliver wildfire risk assessments, safety recommendations, and insurance solutions tailored to each property. Learn more at Media Contact: Art Carter, art@ View original content to download multimedia: SOURCE California Regional MLS Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Epoch Times
a day ago
- Epoch Times
California Legislation Would Allow Bonds and Loans to Support Struggling Insurer
A California bill would allow the state-mandated FAIR Plan to request bonds and loans so that the insurer can cover damages amid the growing wildfire risk in the state.
Miami Herald
4 days ago
- Miami Herald
Los Angeles County fire victims sue AAA and USAA, alleging insurance fraud
Los Angeles County fire victims have filed lawsuits against three large home insurers alleging they were systematically underinsured, leaving them without enough money to replace or rebuild their homes after the Jan. 7 blazes. The twin lawsuits, filed Wednesday in Los Angeles County Superior Court, allege that USAA, a Texas-based insurer that serves the military community, and two insurers affiliated with AAA for years underestimated the replacement cost of the homes, lulling the policyholders into buying inadequate coverage. "These families paid their premiums, trusted their insurers, and did everything right," attorney Gregory L. Bentley said in a statement. "But when disaster struck, they learned their coverage was little more than an illusion. These companies promised peace of mind, but instead left their members stranded, homeless, and hopeless." The lawsuits allege fraud, negligence, breach of contract and other causes of action, and seek damages and reform of the insurers' practices. Bekah Nelson, lead communications director for USAA, said that the company was reviewing the lawsuit and could not comment on specifics, but said "USAA's dedication to outstanding member service is widely recognized." "When wildfires struck Southern California, our teams were on the ground within days, working to support our members in their time of need. To date, we have paid nearly $1.4 billion to help members recover from their losses," she said, adding the company has made payments on more than 90% of homeowner claims. A spokesperson for CSAA Insurance Exchange, which primarily serves AAA members in Northern California, said it does not comment on pending litigation. A spokesperson for the Interinsurance Exchange of the Automobile Club, which serves AAA members in Southern California, also declined comment. The lawsuits open a new front in the litigation that has been spawned by the catastrophic fires, which caused at least 29 deaths and damaged or destroyed more than 16,000 homes and businesses in Altadena, Pacific Palisades and other communities. Several lawsuits have been filed against the California Fair Plan Assn., the state's insurer of last resort, alleging that it is not adequately handling smoke-damage claims arising out of the fires. More than 100 of the state's licensed home insurers, including the CSAA, USAA and the Interinsurance Exchange, are defendants in an April lawsuit accusing the companies of colluding to drop policyholders and force them onto the FAIR Plan in order to reduce their claims exposure. The plan's policies typically cost more and offer less coverage than traditional commercial insurance. The lawsuits filed Wednesday, which are virtually identical except for details pertaining to the different defendants, allege that the problem of underinsurance is "pervasive" and stems from "cost estimator software many insurers use to recommend coverage limits to insureds," as well as "poor design choices, perverse profit and commission incentives, volume business, and other shortcomings." The lead plaintiffs in the lawsuit filed against the two AAA insurers, James and Lisa Fulker, bought a three-bedroom, two-bathroom, 1,872-square-foot home on Kingsport Drive in Malibu in 2020, according to the lawsuit. The newly renovated home - which featured a kitchen with a center island, quartz countertops, high ceilings, a fireplace, an entertainment patio and a master suite with a walk-in closet and spa-like bath - had $713,000 in primary dwelling coverage and 125% extended replacement cost coverage, the lawsuit states. After the fires, however, the couple found their coverage was inadequate as they received estimates of at least $800 per square foot or more to rebuild, far exceeding the $380-per-square-foot calculations of their insurer, the lawsuit states. The lead plaintiffs in the USAA lawsuit, Ethan and Marijana Alexander, had a 2,135-square-foot, four-bedroom, three-bathroom, near-custom home on Bienveneda Avenue in Pacific Palisades that they bought in 2018, according to the lawsuit. The home had $584,000 in dwelling coverage and a 25% home protection endorsement of $146,000, the lawsuit states. Even with the additional coverage, the complaint alleges the couple don't have adequate insurance to rebuild, with USAA calculating the cost at $342 per square foot and the couple receiving estimates at more than $850 to $1,000 per square foot, the lawsuit states. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
