The Insurance Journal reported yesterday that Allstate Insurance Co. will be reducing the price of renters insurance coverage 19.6 percent across the state of California. In addition, condo policies in the Golden State will be reduced by 6 percent. The rate changes are effective immediately.
Allstate said that the rate cuts were sparked by favorable condo and renters insurance loss trends, and the company’s desire to pass that savings along to policyholders.
According to a study facilitated by Allstate two years ago, five million Californians rent their homes, and fewer than 40 percent of them have renters insurance. The study also showed that even though more than half of Californians estimated the value of their possessions at more than $10,000 and nearly a third give their possessions a value over $20,000.
Allstate representatives say that most renters assume that their belongings are covered by their landlord’s insurance on the property, when, actually, its the renter’s responsibility to cover their possessions, as the landlord’s insurance usually covers only the structure of the building.
Yumi Sam, a San Francisco-based Allstate agency owner says, “Allstate is committed to delivering the right products at the right price. Right now that means reducing renter’s insurance rates at a time when many California renters are leaving themselves uninsured.”