Farmers Insurance Group, the second-largest home insurer in California, plans to increase homeowners insurance rates this fall after receiving approval from state regulators. The company will raise overall policy rates by an average of 1.5 percent beginning after September 15, when affected customers renew their policies. The increase will impact nearly 915,000 homeowners across the state. While the statewide average increase is relatively modest, individual policyholders could experience significantly larger hikes depending on their location, property risk, and coverage levels. Some customers, however, may actually see their premiums decrease. Farmers currently insures about 11 percent of California homes, making it the state’s second-largest homeowners insurer behind State Farm. The approved rate adjustment comes as insurers across California continue responding to mounting financial pressures tied to inflation, rebuilding costs, and increasing wildfire risks that have reshaped the state’s insurance market in recent years. Industry analysts expect additional insurers to seek increases.
