How much did State Farm raise California home insurance rates in 2025?

State Farm received emergency approval from the California Department of Insurance to raise homeowner premiums by an average of 17% starting June 1, 2025. Rental dwelling policies saw increases of up to 38%.

Is Farmers Insurance raising rates in California in 2026?

Yes. Farmers Insurance received approval for a 1.5% rate increase effective September 15, 2026: far below the 6.99% the company originally requested. Farmers also raised its home-plus-auto bundling discount from 15% to 22%, so customers who bundle may actually pay less overall.

What is the California FAIR Plan?

The California FAIR Plan is the state's insurer of last resort for homeowners who cannot get coverage in the private market. Enrollment grew 43% in 15 months as private carriers pulled back, and the plan has requested a 36% rate increase. FAIR Plan policies do not include personal property, liability, or temporary living expenses, so most homeowners need a supplemental wraparound policy.

Why are California home insurance rates going up so fast?

The January 2025 Los Angeles wildfires destroyed more than 12,000 homes and triggered over $40 billion in insured losses: the largest wildfire disaster in California history. Insurers cite depleted reserves, higher rebuild costs (up roughly 44% over five years), and continued wildfire risk as the main drivers.

What can California homeowners do to lower their insurance bill?

Shop for new quotes at least 60 days before renewal, ask your insurer about wildfire-mitigation discounts (defensible space, Class A roofing, ember-resistant vents), bundle home and auto where possible, and confirm your coverage limit matches today's rebuild costs rather than your purchase price.

Does the State Farm 17% increase apply to Fresno and Clovis homeowners?

Yes. The State Farm rate increase applies to single-family homeowner policies statewide, including Fresno, Clovis, Madera, and the rest of the Central Valley. The March 2026 settlement provided partial refunds only for condo and rental policyholders.

California Home Insurance Rates Are Rising in 2026: What Every Homeowner Needs to Know

By Aradhana Bhandary, REALTOR® (About Aradhana: /about-aradhana). State Farm raised California homeowner rates 17% in June 2025, Farmers added 1.5% effective September 2026, and FAIR Plan enrollment surged 43%. A Fresno Realtor breaks down what it means for your budget.

California Homeowner Alert | May 2026 | By Aradhana Bhandary, Realtor: Fresno & Clovis, CA

The Short Version

State Farm raised homeowner rates 17% starting June 2025. Farmers Insurance approved a 1.5% increase effective September 2026, but bundlers pay less. The FAIR Plan, California's last-resort insurer, grew 43% in just 15 months. You have options. Keep reading.

Why California Home Insurance Costs Are Rising

If your home insurance bill looks nothing like it did two years ago, you are not alone. California is in the middle of a serious insurance crisis, and it accelerated sharply after the January 2025 Los Angeles wildfires destroyed more than 12,000 homes and triggered over $40 billion in insured losses: the largest wildfire disaster in California history.

About the author

Aradhana Bhandary is a REALTOR® (California DRE #02121126) with Aluisi Real Estate, working as Selling Central California and serving buyers, sellers, and relocating clients throughout Fresno, Clovis, Madera, Fresno County, and the greater Central Valley. She is a Seniors Real Estate Specialist (SRES®) and a physician relocation specialist. Read her full profile at /about-aradhana or get in touch at /#contact.

Frequently Asked Questions

How much did State Farm raise California home insurance rates in 2025?: State Farm received emergency approval from the California Department of Insurance to raise homeowner premiums by an average of 17% starting June 1, 2025. Rental dwelling policies saw increases of up to 38%.
Is Farmers Insurance raising rates in California in 2026?: Yes. Farmers Insurance received approval for a 1.5% rate increase effective September 15, 2026: far below the 6.99% the company originally requested. Farmers also raised its home-plus-auto bundling discount from 15% to 22%, so customers who bundle may actually pay less overall.
What is the California FAIR Plan?: The California FAIR Plan is the state's insurer of last resort for homeowners who cannot get coverage in the private market. Enrollment grew 43% in 15 months as private carriers pulled back, and the plan has requested a 36% rate increase. FAIR Plan policies do not include personal property, liability, or temporary living expenses, so most homeowners need a supplemental wraparound policy.
Why are California home insurance rates going up so fast?: The January 2025 Los Angeles wildfires destroyed more than 12,000 homes and triggered over $40 billion in insured losses: the largest wildfire disaster in California history. Insurers cite depleted reserves, higher rebuild costs (up roughly 44% over five years), and continued wildfire risk as the main drivers.
What can California homeowners do to lower their insurance bill?: Shop for new quotes at least 60 days before renewal, ask your insurer about wildfire-mitigation discounts (defensible space, Class A roofing, ember-resistant vents), bundle home and auto where possible, and confirm your coverage limit matches today's rebuild costs rather than your purchase price.
Does the State Farm 17% increase apply to Fresno and Clovis homeowners?: Yes. The State Farm rate increase applies to single-family homeowner policies statewide, including Fresno, Clovis, Madera, and the rest of the Central Valley. The March 2026 settlement provided partial refunds only for condo and rental policyholders.

Explore

This site works best with JavaScript enabled. You're viewing the accessible text version. Contact Aradhana Bhandary, Fresno Realtor, at (559) 320-5525 or aradhana@aluisi.com.