Allstate’s catastrophe losses jumped. Its California reopening is still pending

By Daniel Masarsky, CA Lic. 0D87510

Updated November 6, 2026. Allstate reported higher national homeowners catastrophe losses for the third quarter of 2026, and its filing to resume writing new California homeowners policies is still under review at the Department of Insurance. State Farm’s filing is still under review too. Neither company is open for new California homeowners business yet. Here is what the earnings numbers actually say, what they do not say about California wildfire, and why shopping through an independent broker still matters while those reopenings wait.

What Allstate’s Q3 numbers show

Homeowners catastrophe losses rose sharply. Insurance Journal, covering Allstate’s third-quarter results, reported homeowners catastrophe losses of about $1.3 billion in Q3 2026, versus $479 million in the same quarter a year earlier. Insurance Business put the same figure at $1.33 billion.
Those losses are national, not a California wildfire breakout. Insurance Business described the catastrophe losses as primarily from storms. They are company-wide homeowners results, not a California-only number.
The homeowners combined ratio worsened. Insurance Journal reported Allstate’s homeowners combined ratio at 89.5 in Q3 2026, compared with 71.5 in Q3 2025. Underwriting income in homeowners fell 59% to $452 million.
The book still grew. Policies in force in homeowners rose 3.3% versus Q3 2025, new business rose 10.2%, and net premiums written in homeowners rose 7.4% to nearly $5 billion, according to Insurance Journal.
Company net income was lower year over year. Insurance Journal reported net income of about $2 billion in Q3 2026 versus about $3.7 billion in Q3 2025. Insurance Business reported $2.1 billion versus $3.7 billion and noted the year-ago comparison also lacked a prior-year gain from a group-health business sale.

What that means for California homeowners

On September 18, 2026, the California Department of Insurance said Allstate had filed under the Sustainable Insurance Strategy on August 31, signaling intent to begin writing new residential policies in California for the first time since 2022. Insurance Business later reported that filing is tied to a 1.4% average rate increase. The same Department alert said State Farm General filed to resume new homeowners applications for the first time since May 2023, for homes meeting IBHS Wildfire Prepared Home standards.

The Department’s own words still apply: those companies are not open for new business yet, and consumers should not wait on an approval to shop. As of this writing (November 6, 2026), we have seen no public notice that either filing has been approved or that either carrier is taking new California homeowners applications.

Separately, FAIR Plan growth from July through September stayed at about 2,200 policies, the slowest since 2022. We covered what that does and does not mean for your renewal in our November 2 post.

Why we became independent brokers

Many years ago we were Allstate agents. We learned a lot there, and we still respect the company. What we did not want was to be locked to a single carrier when the insurance cycle turned hard and that carrier stopped writing the homes our clients needed. That is why we became independent brokers. As brokers, we can shop the admitted and surplus markets available in California and bring clients the best options we can find, whether a big national carrier is open, closed, or waiting on a filing.

That is not a knock on Allstate. If and when its California filing is approved, it may again be one of the markets we can check for the right risk. The point is the structure: a captive or exclusive agency relationship ties you to one company’s appetite. An independent brokerage can move with the market.

Broker groups are watching the unfinished commissioner race for the same reason. Insurance Business reported that Jane Kim holds an early lead over Ben Allen and that the Independent Insurance Agents & Brokers of California warned a sharp change in regulatory direction could delay carriers’ return. Nothing in that story changes a renewal that is due next month: shop the markets that are writing now, and revisit big-carrier reopenings when the Department says they are actually open.

What to do while Allstate and State Farm remain closed

Do not wait on a pending filing. The Department has said not to wait for Allstate or State Farm approval before you shop. A filing is a starting point, not coverage.
Start 60 to 90 days before renewal. That window gives a broker time to check admitted markets, surplus lines, and, if needed, the FAIR Plan plus a difference-in-conditions (DIC) policy.
Document your property and mitigation. Roof age and material, recent updates, photos, and Safer from Wildfires steps (Class A roof, ember-resistant vents, cleared 5-foot zone, defensible space) help every market. See our wildfire mitigation discounts guide.
Compare a full homeowners quote with FAIR Plan plus DIC. FAIR Plan covers fire and a few other named perils; theft, water damage, and liability usually need a separate DIC. Add both premiums before you decide. Our FAIR Plan and DIC guide explains the gaps.
Ask an independent broker to shop both admitted and surplus lines. Surplus lines can fill gaps, but they are not backed by California’s insurance guarantee fund. Ask what that means for your property. More on high-fire-risk home insurance.
Keep current coverage until the new policy is bound. Never cancel first. Line up effective dates so there is no gap, especially if you have a mortgage. If you received a nonrenewal notice, see our SB 1301 nonrenewal guide.

More reading: our California FAIR Plan guide, home insurance, personal insurance, and which insurers are writing again.

FAQ: Allstate, California, and independent brokers

Is Allstate writing new California homeowners policies now?

No. The Department of Insurance said in September that Allstate’s Sustainable Insurance Strategy filing was under review and that the company was not open for new business yet. We have seen no public notice changing that as of November 6, 2026.

Do Allstate’s Q3 catastrophe losses mean California rates are going up again?

Not from those numbers alone. The catastrophe losses reported for Q3 are national homeowners results, described as driven primarily by storms. Separate California rate filings go through the Department under Proposition 103.

Should I wait for Allstate or State Farm before I renew?

No. Shop markets that can bind coverage now. You can always ask again after a reopening is approved.

Why use an independent broker instead of one carrier’s agent?

A single-carrier agent can only offer what that company is writing. An independent broker can compare options across carriers that are open for your risk, including when one national carrier is closed or waiting on a filing.

If Allstate reopens, will ESI place business there?

When a carrier is appointed, open, and a fit for the risk, we can check it along with other markets. The advantage of being independent is that we are not limited to one company’s appetite.

Need a California homeowners quote? Let ESI shop it

ESI Insurance Brokers (Express Service Insurance Agency, Inc. dba ESI Insurance Brokers) is an independent California broker at 2085 Van Ness Avenue, San Francisco, CA 94109. We quote admitted and surplus lines carriers and can compare private options with FAIR Plan and DIC before your renewal.

Get a California insurance quote → On the quote page, click the Homeowners Insurance option.

Or call (415) 440-5136 · CA LIC# 0G83954 · broker@insurance415.com

Sources

This article is general information, not legal advice or a coverage determination. Your policy terms control, and carrier availability and eligibility rules change often. Ask your broker how this applies to your property.