The rate reduction will occur in two phases, according to the insurer: Effective Sept. 20, all new and renewing policies will be cut by an average of 14 percent, with the remainder of the reduction occurring in December. Reduction in rates for current customers will occur upon renewal of their policies.
In addition, customers who select deductibles of $5,000 or more will benefit form larger credits on their policies than in the past, said James Fiske, national marketing manager of Chubb Personal Insurance.
"Our ability to lower rates is based on our loss experience in the state," Fiske said in a news release. "This places us in a position to further grow our California homeowners business."
California Insurance Commissioner Steve Poizner, who was at Friday's press conference, said the rate reduction will save Californians about $14.5 million annually.
Chubb, based in Warren, N.J., has more than 18,000 policyholders in the state.