Allstate Cuts California Renter’s Rates 19.6%

Allstate Insurance Co. announced it is dropping the price California consumers pay for renter’s insurance coverage 19.6 percent statewide. The company is also cutting condo insurance rates in California 6 percent. Rate changes are effective now.

The company said favorable renter’s and condo insurance loss trends in California have created the opportunity to pass savings on to consumers.

According to a 2008 Allstate study, more than 5 million Californians rent and fewer than 40 percent have renters insurance. The study showed that more than half of Californians surveyed value their possessions at more than $10,000. Nearly one third estimate the value of their possessions at more than $20,000. According to Allstate, one of the biggest mistakes renters make is presuming their belongings are covered by whatever insurance their landlord has on the property. Generally, Allstate said, it’s up to the renter to get coverage for their possessions. In most cases, the landlord’s insurance only covers the structure and not the tenant’s possessions.

“Allstate is committed to delivering the right products at the right price,” says Yumi Sam, an Allstate agency owner in San Francisco. “Right now that means reducing renter’s insurance rates at a time when many California renters are leaving themselves uninsured.”

Topics California