Farmers had previously limited new home, condo and renters policies to 9,500 per month. (Credit: Unwind/Adobe Stock)
Farmers Insurance is eliminating the cap on the number of homeowners insurance policies it offers in California, starting immediately.
The move affects Farmers’ home, condo and renters insurance offerings in the state, which were previously capped at 9,500 policies per month.
The company said it was encouraged by the state’s new Sustainable Insurance Strategy, which allows insurers to use catastrophe models for rate making in exchange for writing coverage in high-risk areas.
“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,” said Behram Dinshaw, president of personal lines for Farmers Insurance, in a statement. “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.”
The new rating plan seeks a 6.99% average statewide rate increase. It also offers an updated bundling discount for consumers: 22% for customers who get home and auto from Farmers, up from 15%.
Farmers said it expects to add thousands of new policies in areas identified as distressed by the California Department of Insurance. To reach more customers, the company will launch a marketing campaign targeted to roughly 300,000 consumers in distressed areas in early 2026. Farmers agency owners will also receive resources to conduct marketing outreach.
However, Consumer Watchdog issued a statement calling the Farmers filing a “poster child for the loopholes” in the Sustainable Insurance Strategy.
The organization says that the filing would allow Farmers to raise rates on some customers by up to 65%, primarily for higher risk properties. While the filing says it will increase policies in distressed areas by 5,596, Farmers has shed 15,225 policies in distressed areas since 2023, when the Sustainable Insurance Strategy was announced.
“Farmers is able to raise rates for its highest risk policyholders by up to 65% in exchange for selling 59,000 less policies in the state than when Lara announced the deal,” said Jamie Court, president of Consumer Watchdog, in a statement. “Hundreds of thousands of policyholders have been dumped and forced onto the FAIR plan over the last two years since Lara’s strategy was announced. These filings will not reverse that trend.”
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