The state Insurance Department cites increased losses in approving the change.

California
Insurance Commissioner Steve Poizner has granted a request from
Allstate Insurance for a 6.9% increase in its rates for homeowner
coverage, according to the state Department of Insurance.

The
hike followed by five months an agreement between Allstate,
California’s third-biggest home insurer, and the commissioner to cut
average rates by 28.5%.

"Allstate’s losses have increased from prior years, and a new rate was warranted," said department spokesman Darrel Ng.

The
rate-increase proposal, which was not subject to a public hearing
because it was below a 7% legal threshold, was approved after Poizner
allegedly "weakened" rate-setting regulations last spring, charged
Douglas Heller, executive director of Consumer Watchdog, a Santa Monica
advocacy group.