California’s second-largest home insurer to raise rates this fall

Farmers Insurance Group, the second-largest home insurer in California, is set to raise overall policy rates for homeowners by 1.5% this fall.

Its rate hike, approved Monday, will take effect for the insurers’ nearly 915,000 homeowners at their next renewal date following Sept. 15, 2026, according to a filing with the California Department of Insurance. While increases across the state will average out to 1.5%, Individual customers could see their rates rise by much more than 1.5% or may see their premiums decrease. Data on the exact range of rate changes or which areas may see the largest hikes wasn’t available on Monday.

Farmers covers approximately 11% of all insured homes in California, second only to State Farm General. As part of its filing, the insurer said it will up its home and auto bundling discount from 15% to 22% and increase the discounts homeowners can get for reducing their wildfire risk.

This is Farmers’ first filing under the Sustainable Insurance Strategy, a set of regulatory reforms finalized last year that altered the way insurance companies price wildfire risk. The request was first submitted last November for a 6.99% increase but was approved by regulators at just 1.5%…(more)