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California renters with policies through American Modern Home Insurance (AMH) will see their renters insurance premiums climb $60–$136 per year, starting in April 2025. This is due to the California Department of Insurance approving American Modern Home’s request for a 42.2% rate increase in November.

Under the approved increase, the average premium for AMH’s property and liability renters policies will go from $197.69 per year to $280.69, according to the insurance company’s rate filing. For liability-only renters policies, the annual average will climb from $84.23 to $130.80.

The insurer cited significant losses and changes in its book of business when requesting the rate increase. The new rates will take effect for renewals and new policies beginning April 14, 2025.

Where rate increases will hit hardest

Approximately 200 policyholders in San Jose could see their renters insurance premiums rise by $136 next year, the insurer’s rate filing shows. The majority of affected policyholders — 38,340 throughout the state — could face maximum increases of $123 per year.

Costa Mesa in Orange County has the most affected policyholders. More than 870 policyholders in the city will see their premiums increase as much as $123 in April 2025. Santa Clara, in Santa Clara County, has the second-highest number of affected policyholders facing a $123 increase — 771 tenants will be affected.

What’s next: Rising renters insurance costs

Although states don’t typically require tenants to carry renters insurance, many landlords do. And even if a landlord doesn’t require it, renters insurance is still a good idea since a landlord’s insurance only covers the building — not the tenants or their property.

The median rental price in California is $1,992 per month, according to U.S. Census Bureau data. The average cost of renters insurance in the Golden State is $19 per month, or $228 per year. With next year’s premium increase, California tenants with American Modern Home insurance will pay around $52 above average per year.

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