2017-2018 Rate Updates for Nationwide, Allied, and The Hartford Insurance Company in California

There were five notable homeowners insurance rate changes filed for consideration in California. The companies involved multiple sister companies: Property and Casualty Insurance Company of Hartford, Trumball Insurance, Allied Property and Casualty, and AMCO. Nationwide has also filed for a rate change. None of the rate filings have been approved so far.

The Hartford Insurance Company

Both Property and Casualty Insurance Company of Hartford and Trumball have filed for rate changes. The companies say they have requested the changes due in part to their recent growth. The Hartford also states, "there was a significant mix shift in our book at the implementation of our Home Advantage class plan in April of 2012."

The proposed changes for the Property and Casualty Insurance Company of Hartford would increase premiums by an average of 6.9% for 80,692 homeowners who hold policies with the company. Trumball insurance customers experience a 6.9% increase on average, and 28,136 policyholders would be affected.

However, some policyholders with the Property and Casualty Insurance Company of Hartford could face increases of up to 91.3%. However, other customers by contrast, will have decreases of 29.2%. Overall average increases for Trumball policyholders will be similar to that for Property and Casualty of Hartford. That said, some policyholders could have an increase of 75.5% and, others a possible decrease of 28.8%.

If the filing is approved by the state, Property and Casualty Insurance Company of Hartford policyholders would have an average increase of $67 in their premiums. Trumball Insurance policyholders would have a higher average increase of around $83.

Nationwide Insurance Company

Nationwide has a pending rate filing with the state of California. Its rate filing states that the increases will be 6.5% on average, and that the change will affect 52,196 policyholders. In terms of pricing, the filing would result in policies that increase, on average, by approximately $43.

The increases will be spread unevenly, however; some policyholders may experience increases of up to 48.7%, while others will enjoy decreases of 27.6%.

Allied Insurance

Allied Property and Casualty and AMCO are sister companies in the Nationwide family. Both companies have filed for rate changes.

Allied Property and Casualty's, if approved, requested changes will increase premiums for its home insurance customers by an average of 6.4%. That hike translates into a mean price increase of around $66, affecting 68,134 customers.

AMCO's average increase would be 7.2% for 175,412 homeowners who hold policies with the company. Not all policies will be affected equally; some policies may see an increase in premiums of up to 47.5%, while others will see their bills decline, with the largest decrease being around 24%.

California Home Insurance

So far this year, out of the 12 largest homeowners insurance carriers in the state, only four have been approved for rate changes. Of those changes, one sought a decrease in premiums. The average increase across the 12 companies is a slender 0.3% as of October 2017. The average cost of home insurance in California is $992.

Nationwide is one of the top insurers for California. In 2016, it directly wrote $328 million worth of premiums. Among the largest companies in the state, it had the highest approved rate change so far this year with premiums rising by 4.9%. Despite the rate increases, California remains an affordable state for homeowners insurance when compared to the rest of the country.

Comments and Questions