Mercury files to expand California homeowners coverage with 6.9% rate increase

Mercury Insurance  has filed for a 6.9% average rate increase on its California Homeowners program, marking the first filing under the state’s Sustainable Insurance Strategy and the first to use Verisk’s updated wildfire catastrophe model.

The new rating plan will allow Mercury to expand into higher wildfire risk areas, offering an alternative to the limited California FAIR Plan. Discounts will be provided to policyholders who take steps to harden their homes or live in fire-prepared communities, with potential savings of up to one-third on the wildfire portion of premiums.

While homeowners in high-risk areas could see larger rate increases, those in lower-risk areas may see decreases. Mercury said the filing is aimed at strengthening its ability to provide coverage in distressed regions, offering FAIR Plan policyholders more complete options beyond wildfire-only coverage.

“Commissioner Lara’s Sustainable Insurance Strategy (SIS) will help stabilize the California homeowner’s insurance market. Our filing is the first step toward Mercury’s goal of expanding insurance options for California homeowners and underscores our 60-year commitment to California customers and agents. As other companies scaled back their California operations, Mercury stepped up to provide more options for our agents and customers, and we are committed to continuing our efforts to help protect our California neighbors well into the future.” – Mercury’s CEO, Gabriel Tirador.