Farmers Insurance, the largest property casualty insurer headquartered in California, has decided to eliminate the cap on the number of homeowners insurance policies it offers in the state, including Farmers Smart Plan Home, Farmers Smart Plan Condominium, and Farmers Smart Plan Renters policies, effective immediately.
Farmers had continuously offered homeowners insurance to consumers in the state, which had been capped at 9,500 new policies per month.
Additionally, Farmers has filed a new rating plan aligning with key elements of the Sustainable Insurance Strategy and is expected to add at least several thousand new policies in areas identified as distressed by the California Department of Insurance.
To ensure a successful follow-through of the plan, Farmers will begin marketing directly to approximately 300,000 consumers in the distressed areas in early 2026, and provide local Farmers agency owners with resources to conduct additional marketing outreach.
The filing requests a 6.99% average statewide rate increase and proposes an updated discount for customers who choose to bundle their Home and Auto insurance with Farmers, offering a significantly improved 22% Home/Auto discount, rising from 15%.
Behram Dinshaw, President, Personal Lines, Farmers Insurance, commented, “By removing the cap on offering new homeowners policies, Farmers is doubling down on its commitment to California homeowners, expanding choice and availability for consumers across the state.
“We are also reaffirming our commitment to serving the needs of residents by submitting a new Sustainable Insurance Strategy-inspired rating plan, which is designed to expand our offerings to more homeowners across California.”
“Farmers has a long and proud history in serving the insurance needs of Californians and with today’s announcement, we want to send a strong signal that we remain committed to doing our part to continue improving the insurance marketplace in the state,” added Dinshaw.
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