Condo insurance rates will increase an average of 15% next month for more than 34,000 Liberty Mutual policyholders. On Sept. 3, the California Department of Insurance approved the company’s request for a rate hike that will see some policyholders’ annual premiums soar by more than $1,000.
The hike is just the latest request from a California insurer as companies seek to recoup past losses.
Losses drive increase
Liberty Mutual is the seventh-largest insurance company in California and accounts for nearly 7% of California’s home insurance market, according to DOI data. The insurer reported losses of more than $612 million for its home insurance lines of business in 2023.
The company said in its rate request filing that the requested increase reflects the losses it has experienced in California.
Impact on condo owners
The rate increases will affect 34,343 condo insurance policies across the state. On average, policyholders will see their annual premiums increase by $146. But 156 policyholders in San Francisco will face premium increases that could be as high as $1,256 annually.
Policyholders in three other ZIP codes could also face increases that top $1,000 per year.
What’s next
The national average cost of condo insurance is $1,782 per year for $200,000 in dwelling coverage, according to Insurify data. Multiple rating factors affect the cost of condo insurance, including location, coverages, and insurer. Condo owners facing significant rate increases may be able to find cheaper options by comparison shopping.
The increases for Liberty Mutual condo insurance policies take effect Oct. 12.
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