Chubb Sets 18.4% Calif. Home Rate Cut

The Warren, N.J.-based Chubb Group of Insurance Companies said it will lower its homeowners insurance rates in California by an average of 18.4 percent.

Chubb announced its rate reduction at a California Department of Insurance press conference in Redwood City, Calif., attended by State Insurance Commissioner Steve Poizner and executives from Chubb's Northern California branches and New Jersey home office.

James Fiske, vice president, Chubb & Son, and national marketing manager, Chubb Personal Insurance, said the reductions will be even higher for customers who take additional measures to protect their property or chose higher deductibles.

Mr. Fiske said policyholders with deductibles of $5,000 or more will benefit from larger credits on their policies than in the past. Chubb, he said, has also introduced a 10 percent credit in the state for customers who buy both homeowners and automobile insurance policies from Chubb.

The company noted that the home rate reduction comes nearly one year after Chubb lowered its automobile insurance rates in California.

Chubb said the homeowners' rate reduction will occur in two phases. Effective Sept. 20, all new and renewing policies will experience a 14 percent average rate decrease. The remainder of the reduction will occur in December. Current customers will see the rate reduction upon renewal of their policies.

"Our ability to lower rates is based on our loss experience in the state," said Mr. Fiske. "This places us in a position to further grow our California homeowners business. When viewed along with our broad coverage and reputation for extraordinary claim service, Chubb is significantly more competitive in the luxury, custom and historic home markets."

Chubb, Mr. Fiske noted, has grown its California homeowners business during the past five years, while other insurers have reduced their writings or depth of coverage in the state.

Besides offering broad homeowners coverage--with an extended replacement cap of 200 percent--earthquake, high-limit personal excess liability and automobile insurance, Chubb offers a full range of lifestyle risk management products and services.