New rule will allow some California home insurance rates to increase; officials say it will stabilize market [Video]

LOS ANGELES (KABC) — Many Californians are dealing with home insurance price hikes and cancellations because of wildfire risk.

More than 350,000 Allstate home insurance policyholders will see a big increase in cost. The California Department of Insurance is allowing the company to raise rates an average of 34%.

“Under Prop 103, which is the consumer protection law passed more than 30 years ago by voters, insurance companies are free to choose where they write policies, and they can choose their rates,” Department of Insurance spokesperson Michael Soller said. “They can file for rates at any level with no requirement that they write more policies.”

Related story: Californians finding it hard to keep their homes insured amid skyrocketing rates, canceled policies

Mark Slater is feeling the insurance crisis. After 20 years with Allstate – and without a claim – he received a letter saying his home insurance is not being renewed.

“I’ve paid my fair share into the insurance company,” Slater said. “Now, they’re just throwing me, …