Allstate must trim its homeowners insurance rates for California residents by more than a quarter after Insurance Commissioner Steve Poizner signed an order this week.
The cut in rates will mean an annual savings of approximately $250 per customer. Allstate, California's third largest home insurer, currently has about 850,000 customers in the state.
In a company release, Allstate noted, “While we are disappointed in this order, we respect the authority of the Department and will comply. We are reviewing the order in detail and communicating with the Department about the process for adjusting the rates of our 850,000 homeowners policyholders in the state. Californians can continue to rely on more than 1,300 Allstate agents to help them with insurance and retirement needs.”
Allstate had sought a 9.3 percent jump in rates prior to learning it would instead be giving back money to customers. The new rates go into effect on July 28.