Insurer Seeks Rate Rise in Riot-Affected Areas
Crusader Insurance Co., a Woodland Hills-based firm that says it was hit with $21 million in riot-related claims last spring, has asked the state Insurance Department to approve a 25% to 30% rate increase for small businesses in rioted-affected areas.
Cary Cheldin, executive vice president at Crusader and its parent firm, Unico American Corp., said if the request is denied the insurer may have to drop 1,200 policyholders in South-Central and nearby areas.
Cheldin said Crusader wants to increase the average annual premium for liability and property coverage to about $2,600 a year, from $2,000. “Since we’re losing money there today, we either have to stop doing business or raise our rate,” he said. The Insurance Department is expected to make a decision on the rate request by year-end.
Crusader insures about 2,000 liquor stores, mini-marts and other small businesses in the central city. The company has about 8,000 policyholders in Southern California.
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