Big news for condo owners in California. Starting this October, Liberty Mutual is implementing a 15% rate hike on condo insurance policies. That’s a significant jump for more than 34,000 policyholders. And here’s the kicker—it’s happening as the company gears up to exit this line of business entirely by 2026.
San Francisco Takes the Biggest Hit
San Francisco condo owners are bracing for impact. For 156 policyholders, annual premiums are set to skyrocket by as much as $1,256. It’s not just the Bay Area feeling the heat, though. Other ZIP codes across California are also seeing jaw-dropping increases.
Other High-Impact Areas
Here’s a quick look at some of the hardest-hit locations:
- Pacific Palisades: Average increase of $316, with some premiums maxing out at $1,105.
- Newport Beach: Average hike of $238, reaching up to $1,074 for certain policyholders.
- Los Angeles: Average bump of $286, with a maximum increase of $1,038.
Statewide, the average increase is $146 annually. But for those in these high-impact areas? It’s a much steeper climb.
What’s Going On?
Liberty Mutual isn’t shy about its plans. They’ve made it clear. Come 2026, they’re walking away from offering condo and renters insurance in California. Why? They say the risks and volatility in the market are too much to handle.
Still, this October shake-up raises eyebrows. Why the rate increase now if they’re planning to bow out soon? It’s a question many policyholders are asking—and it doesn’t have an easy answer.
Could They Stay?
Some might wonder, could Commissioner Ricardo Lara’s new Sustainable Insurance Strategy change Liberty Mutual’s mind? It’s designed to tackle California’s tumultuous insurance market. The plan lets companies use catastrophe models, factor in reinsurance costs, and have more wiggle room in rate-setting. It’s a big shift aimed at turning the market around.
But honestly? Most experts say Liberty Mutual isn’t likely to change course. Not anytime soon.
Why Not?
Liberty Mutual seems pretty set on its strategy. They’re “simplifying” operations and focusing on core products. Translation? Condo and renters insurance aren’t part of the future plan. The company isn’t just reacting to California’s current issues; they’re making a long-term pivot.
Back in 2024, they stopped accepting new condo and renters insurance policies. And now? They plan to start not renewing existing ones in 2026. That’s a clear timeline. No room for second-guessing.
Focused on What Works
Don’t get it twisted—Liberty Mutual isn’t ditching California altogether. They’re staying in the game with homeowners insurance and other Safeco products. The exit from condos and renters? It’s a surgical shift, not a retreat.
The Bigger Picture
Commissioner Lara’s strategy could help some insurers. Maybe bring back a few that left. But for Liberty Mutual? The math just doesn’t add up. The risks, the volatility—they see this segment as a losing bet, even with new rules in play.
For now, all we know is this. Come October, condo owners will feel the sting of a 15% hike. And by 2026, the line goes dark.
Change happening fast. Stability? Not so much.
What’s Next for Condo Owners?
The new rates take effect on October 12. For condo owners in areas like San Francisco, Pacific Palisades, and Newport Beach, the financial strain will be real. Some may consider shopping around for better rates, but with the national average for condo insurance sitting at $1,782 annually, options might be limited.
Feeling the Pinch?
You’re not alone. California’s condo owners are facing a tough reality, with rising premiums adding to the cost of living. For those in the hardest-hit ZIP codes, it’s time to weigh options and prepare for the financial impact.

Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.