Home insurance rates are set to rise significantly for many California residents. The California Department of Insurance has approved substantial rate increases for two subsidiaries of USAA, the sixth-largest home insurer in the state.
The approved adjustments include a 16% increase in homeowners policy rates and a 31% hike in condo owners insurance policies, effective February. Additionally, USAA Casualty Insurance Company will implement a 25% increase for homeowners and a 40% increase for condo owners’ insurance policies. These changes will be reflected in December renewal notices.
USAA provides coverage to about 5.61% of Californians, impacting over 234,000 home insurance policyholders and 31,000 condo policyholders with these new rates.
The company has halted issuing new policies since April 2023 due to “rate inadequacy” concerns but continues offering new coverage under specific conditions. Homes with wildfire risk scores above one on their scale will not receive new coverage.
These rate hikes reflect broader trends in the state’s volatile insurance market. In August, Allstate received approval for a 34% rate increase affecting over 354,000 policyholders. This is part of an ongoing pattern where rates across California rose by an average of 8% from 2023 to 2024.
Similar trends are occurring nationwide, with significant rate increases noted in states like Louisiana and others experiencing double-digit rises this year.
