Approved with changesFinal order California
California approves 17.0% homeowners rate increase for State Farm General
State Farm General Insurance Company asked California regulators on June 27, 2024 to raise rates on its non-tenant homeowners (HO-3) policies by 30.0% on average. California's Insurance Commissioner approved a 17.0% increase, first as an emergency interim rate effective June 1, 2025, then as the final rate in an order dated July 23, 2026.
By C. Zakarian, editor. Published
Approved 13.0 points below the request. Overall average increases; individual premiums vary.
Who it affects
The rate applies to State Farm General's non-tenant homeowners policies in California, the HO-3 form, for new and renewing policies from June 1, 2025. The filing documents we reviewed do not state how many policies are affected. The same proceeding also covered State Farm General's renters, condominium, and rental dwelling filings, which are not part of this report.
The 17.0% is an overall average. Individual policyholders' changes can be larger or smaller.
Why did State Farm General ask for an increase?
- State Farm General asked to raise its maximum permitted earned premium under California's solvency variance, saying the increase was needed to protect its solvency.
- After the Palisades and Eaton fires began in Los Angeles on Jan. 7, 2025, the company asked the Commissioner on Feb. 3, 2025 for an emergency interim rate while its full rate case was pending.
- The final order found that State Farm General's policyholder surplus had been deteriorating since 2017.
- Under the settlement, State Farm General's plan to restore its financial condition includes a $400 million surplus note issued to its parent, State Farm Mutual Automobile Insurance Company.
How this compares
This is the first State Farm General filing that FiledRates has tracked. Across California, CDI's list of filings closed from Jan. 2 to Sept. 30, 2026 includes 19 personal homeowners company filings approved with a non-zero overall change, all of them increases, with a median of 6.9%. State Farm General's 17.0% ranks fifth of the 19. Of the 9 approved below the request, only one was cut by more than this filing's 13.0 points. The California page has these figures and every California filing FiledRates reports.
As of Oct. 6, 2026, among the five filings FiledRates has published across Florida, Texas, and California, this filing has both the largest requested change (+30.0%) and the largest approved change (+17.0%). The 13.0-point gap between what was requested and what was approved is also the largest of the five. The Florida Citizens filings were set 3.3 and 6.9 points below their requests, and the two Texas FAIR Plan filings were approved as filed.
| Filing | Requested | Approved |
|---|---|---|
| State Farm General, California (this filing) | +30.0% | +17.0% |
| Texas FAIR Plan, 2025 filing | +10.8% | +10.8% |
| Citizens, Florida, 2024 filing | +13.5% | +6.6% |
| Texas FAIR Plan, 2026 filing | −2.6% | −2.6% |
| Citizens, Florida, 2025 filing | −5.5% | −8.8% |
These filings come from different states, insurers, and years, so the ranking shows scale rather than a like-for-like comparison.
What happens next
The Commissioner's July 23, 2026 order is the final decision on this application. Because the final rate equals the interim rate that took effect June 1, 2025, the settlement provides that no refunds are owed on this form. As part of the settlement, State Farm General agreed to refrain from new block non-renewals of the homeowners forms covered during 2026.
California reviews homeowners rates under prior approval: under Proposition 103, the Commissioner must approve a rate before an insurer uses it. Any member of the public can request a hearing within 45 days after a filing is publicly noticed. More on the process is on our California page.
Timeline
- State Farm General files for a 30.0% increase (file no. 24-1271).
- The Department of Insurance gives public notice of the application.
- Consumer Watchdog petitions to intervene and requests a hearing.
- State Farm General requests an emergency interim increase of 22% for this line.
- The Commissioner adopts a 17% interim increase, effective June 1, 2025, subject to refund if later found excessive.
- The department, State Farm General, and Consumer Watchdog file a settlement agreeing to a final 17% for this form.
- The Commissioner adopts the decision approving the settlement; 17% becomes the final rate.
Source documents
- Stipulation and Request for Proposed Decision, State Farm General rate applications (March 6, 2026)
- Order Adopting Proposed Decision Approving Stipulation (July 23, 2026)
- Rate Filing Closed and Approved Filings, year to date through Sept. 30, 2026 (spreadsheet)
- Commissioner Lara adopts judge's ruling on State Farm emergency rates (May 13, 2025)