Mercury Insurance has announced a new rate filing for California homeowners under the state’s Sustainable Insurance Strategy. This move utilizes the recently reviewed Verisk Wildfire catastrophe model to estimate potential future wildfire impacts and adjust coverage pricing accordingly.
According to Mercury Insurance, the proposed rate change suggests an average 6.9% increase due to inflation and exposure to catastrophic events such as wildfires. Rate adjustments will vary by location, with higher-risk areas potentially facing larger increases while lower-risk areas may see decreases. Discounts will be available for homeowners who take measures to mitigate wildfire risks, such as clearing vegetation, upgrading vents, or using fire-resistant materials. Additional discounts are offered for residents in communities that implement collective wildfire-prevention strategies. The FAIR Plan policyholders will have expanded coverage options for events including water damage, personal liability, and theft.
“Commissioner Lara’s Sustainable Insurance Strategy (SIS) will help stabilize the California homeowner’s insurance market,” said Gabriel Tirador, Mercury’s CEO. Tirador added that their filing is a step toward expanding insurance options for California homeowners and emphasizes Mercury’s long-standing commitment to its customers and agents in the state.
A report by Policygenius indicates that homeowners in Los Angeles pay an average of $1,566 annually for insurance, which is about 13% above the California state average but roughly 11% below the national average.
Founded in 1961 and based in Brea, California, Mercury Insurance provides coverage across multiple sectors including auto, home, condo, renters, business insurance, and mechanical protection. The company operates through 6,340 independent agents and 15 offices across 11 states. It focuses on offering affordable rates with comprehensive coverage supported by local agents. Additionally, Mercury runs a Special Investigations Unit to combat insurance fraud and offers guaranteed vehicle repairs through authorized auto shops to ensure smooth claims resolution for policyholders. The company holds over $8.3 billion in assets and employs more than 4,200 people.
