State Farm homeowners insurance

Overview

State Farm is the largest home insurer in the United States by a wide margin. Its NAIC group ranked #1 among U.S. homeowners insurance groups by 2025 direct premiums written, with $35.27 billion, or 18.67% of the national market, according to NAIC market share data. That is roughly twice the premium of the next group, Allstate. In 2025 State Farm was the largest homeowners writer in 41 states, including Texas ($4.03 billion, 19.66%), California ($3.30 billion, 18.62%) and its home state of Illinois, where it held 33.68% of the market. In Florida it ranked 4th.

The group is a mutual: State Farm Mutual Automobile Insurance Company is owned by its policyholders rather than shareholders, and it owns the property companies that write home insurance. Which one issues your policy depends on where you live: State Farm Fire and Casualty Company in most states, State Farm General Insurance Company in California, State Farm Florida Insurance Company in Florida and State Farm Lloyds in Texas. That detail matters, because those companies carry very different financial strength ratings.

State Farm sells through exclusive agents, independent contractors who represent only State Farm. The company says more than 19,000 agents serve over 96 million policies and accounts (July 2026). Jon Farney has been chief executive since June 1, 2024.

History

George J. Mecherle, a farmer turned insurance salesman, founded State Farm in Bloomington in 1922 as an auto insurer for farmers. The company added life insurance in 1929 and launched its fire insurance company, the forerunner of today's home insurance business, in 1935. It describes itself as the country's top auto insurer since the 1940s and now insures more homes and autos than anyone else.

Its recent history is shaped by catastrophe-exposed states. In 2009 State Farm Florida filed to leave the Florida property market after regulators refused a large rate increase. A December 2009 consent order kept it in the state but let it nonrenew up to 125,000 of its roughly 810,000 residential policies and raise rates 14.8%. In California, State Farm General stopped accepting new property applications on May 27, 2023, then announced in March 2024 that it would nonrenew about 30,000 homeowners and other property policies plus all 42,000 commercial apartment policies. The January 2025 Los Angeles wildfires followed, along with an emergency rate case described below.

Homeowners coverage

State Farm writes on its own homeowners forms rather than ISO's HO 00 03 (its Texas homeowners form, FP-7955, was approved in 2002), so wording can differ from the standard policy. A standard policy includes Coverage A (dwelling), personal property, loss of use and liability, plus additional coverages for items such as debris removal, power interruption, temporary repairs, and trees and shrubs. Inflation coverage, which adjusts limits as building costs change, is built in. The company also sells condo unitowners, renters, manufactured home, rental dwelling and farm and ranch policies.

Optional coverages confirmed on State Farm's site include:

• Back-up of Sewer or Drain endorsement. Without it, water that enters through a sewer, drain or sump pump is excluded, and State Farm's claims page lists it as typically not covered.
• Identity restoration and fraud loss. This costs $25 a year on home, renters and condo policies, with a $50,000 annual limit and a $500 deductible. It is not available in every state.
• Earthquake coverage. Sold as an endorsement or a separate policy.
• Personal Articles Policy. A separate policy for scheduled jewelry, art and other valuables.

Flood is excluded. State Farm directs customers to the National Flood Insurance Program, written through NFIP Direct. Coverage details and limits vary by state, so the declarations page and your state's endorsements control.

Discounts and savings

State Farm's discount page lists:

• a multi-line discount when home and auto are bundled
• a home security discount for qualifying fire, smoke and burglar alarms (State Farm no longer offers its former ADT monitoring discount)
• a roofing discount for certain impact-resistant (Class 4) shingles, offered only in 26 states, mostly across the Plains, Midwest and South
• wind mitigation credits based on IBHS FORTIFIED designations, Florida Building Code features or opening protection
• wildfire mitigation discounts in California, Colorado and Oregon
• a claims-free discount

In Colorado, the wildfire credit is 2% to 5% of the wildfire portion of the premium for homes in Firewise USA communities, or 4% to 18% for homes with IBHS Wildfire Prepared Home designations. Before you replace a roof expecting the discount, ask your agent which shingles qualify. State Farm requires a certification form.

Where it sells and recent market moves

State Farm writes homeowners insurance through agents in nearly every state. It is not among the 10 largest home insurers in Massachusetts or Rhode Island. In Massachusetts it writes only on an accommodation basis for existing customers who move there, about 10,000 homeowners policies as of September 2025, and it has said it plans to enter that market in early 2027.

California is the main exception. State Farm General has been closed to new homeowners applications since May 2023. In May 2025 the commissioner granted it an emergency interim 17% homeowners rate increase, effective June 1, 2025. The conditions were a $400 million capital infusion from the parent and no new block nonrenewals through 2025. A March 6, 2026 settlement kept the homeowners increase at 17%, cut the rental dwelling and condo increases, and extended the nonrenewal moratorium. On September 16, 2026, State Farm General filed guidelines to accept new applications from homes with IBHS Wildfire Prepared Home designations: "Enhanced" homes statewide, "Essential" homes only in low or moderate fire hazard areas. In a September 18, 2026 alert, the California Department of Insurance said State Farm was not yet open for new business. State Farm also adds a temporary fee of 1.13% of premium for two renewals starting December 1, 2025, to recoup its share of the FAIR Plan assessment.

Illinois is the other flashpoint. State Farm raised homeowners rates there by an average 27.2% in 2025. It then filed a further increase of nearly 8% that took effect for new policies on October 1, 2026, and applies to renewals from December. It says it paid $1.22 in claims and expenses for every $1 of Illinois premium over the past three years. A 2026 state law gives the Illinois Department of Insurance power to review homeowners rates starting July 1, 2027.

Across all states, State Farm's homeowners, commercial multi-peril and other property lines lost $3.1 billion on underwriting in 2025, after a $3.6 billion loss in 2024.

Claims

You can report a home claim 24/7 at 800-732-5246 (800-SF-CLAIM), online or in the State Farm app. State Farm assigns a claim handler, and you can message that handler and track the claim online. Eligible repairs can go through its Select Service contractor program, though you may choose your own contractor.

Its handling of the 2025 Los Angeles wildfire claims is under formal challenge. On May 4, 2026, the California Department of Insurance filed an accusation against State Farm General. A market conduct exam had found 398 violations in 114 of 220 sampled claims, including missed investigation and payment deadlines, underpayment, repeated adjuster reassignments and smoke-damage testing denials. The department also cited 34 violations from consumer complaints. State Farm rejected the allegations. Los Angeles County sued the company over the same claims on August 31, 2026. State Farm says it has paid more than $6.2 billion on those wildfire claims.

Ratings and reputation

On November 14, 2025, AM Best downgraded State Farm Mutual, State Farm Fire and Casualty and State Farm County Mutual of Texas to A+ (Superior) from A++, with a stable outlook. It cited five straight years of underwriting losses, while still rating the group's balance sheet at its strongest level. The same review affirmed:

• State Farm Lloyds at A (Excellent)
• State Farm Florida at A- (Excellent)
• State Farm General at B (Fair)

S&P lowered State Farm General to A- in August 2025, according to State Farm.

In J.D. Power's 2026 U.S. Home Insurance Study (September 2026), State Farm ranked first among renters insurers with 702 points. It was not among the top three homeowners insurers named in the release.

Who it suits

State Farm suits homeowners who want an agent in town, one company for home, auto and umbrella, and the claims capacity of the country's largest property insurer. It suits Californians poorly for now, and it is worth comparing prices in Illinois after two large increases. In Florida, Texas and California, check which State Farm company is on your declarations page: its rating may differ from the group's.

• Strengths: largest home insurer in 41 states; A+ (Superior) group rating with the strongest balance sheet assessment; agents in nearly every state; wind, roof and wildfire mitigation discounts.
• Weaknesses: no new California homeowners business since May 2023, and State Farm General is rated B (Fair); a pending California enforcement action and Los Angeles County lawsuit over wildfire claims; Illinois rates up 27.2% in 2025 with a further increase in 2026; sold only through State Farm agents, so you cannot compare other carriers through the same agent.

How to contact State Farm