If you’re a homeowner in California who is shopping around for a new policy, you may have noticed one big insurance player is no longer in the game. Allstate dropped Temecula, CA, and is no longer offering new insurance policies to homeowners and business owners in the state of California.
Claiming High Costs
It’s no secret that the past couple of years have been rough on California buildings. A spike in wildfires caused a considerable amount of damage to homes and businesses in certain parts of the state. Allstate is using the increase in damage alongside the high cost of rebuilding as a reason for why they are no longer offering new insurance policies for homes, condominiums, and businesses.
Additionally, state regulations that protect consumers and inflation are being blamed for why Allstate dropped Temecula, CA.
An Alarming Pattern
Despite being a billion-dollar industry, insurance companies across the United States are pulling out of states that are more prone to natural disasters such as hurricanes and fires, leaving millions without options for home insurance.
It’s not surprising that Allstate has abandoned customers after a natural disaster. After the Northridge earthquake in 1994, Allstate also pulled out of insuring California homeowners. Although they eventually returned, they paused coverage again in 2007 and didn’t return for 10 years.
Smaller Insurance Companies Pick Up the Slack
With big insurance companies backing out of protecting Californian homes and businesses, smaller insurance companies are benefiting. Small companies based in California are showing their dedication to sticking with California residents and providing coverage.
Old Harbor Insurance has stepped up since Allstate dropped Temecula, CA. They offer personal and commercial insurance coverage, including home and auto insurance.
