Farmers Insurance Removes Policy Cap in California
Farmers Insurance is making a significant change to enhance the homeowners insurance landscape in California. Anticipating a positive shift in the state’s insurance market amidst the adoption of the Sustainable Insurance Strategy, Farmers has decided to lift the limits on new homeowners insurance policies immediately. This exciting development allows for the inclusion of Farmers Smart Plan Home, Farmers Smart Plan Condominium, and Farmers Smart Plan Renters insurance, which previously faced a cap of 9,500 new policies each month.
New Rating Plan to Support Policy Expansion
Along with this policy cap removal, Farmers Insurance has submitted a comprehensive new rating plan that integrates essential aspects of the Sustainable Insurance Strategy. This plan is expected to facilitate the issuance of several thousand new homeowners policies targeting areas recognized as distressed by the California Department of Insurance. In 2026, Farmers will proactively reach out to around 300,000 consumers living in these areas, providing local agency owners with necessary marketing tools for enhanced outreach.
Improved Discounts and Commitment to Service
The new filing also anticipates an average statewide rate increase of 6.99%, but it brings good news for customers opting to bundle their home and auto insurance. Farmers is raising the discount for this bundle from 15% to an impressive 22%, enhancing savings for policyholders. “By removing the cap, Farmers demonstrates its commitment to expanding choices and availability for homeowners throughout California,” expressed Behram Dinshaw, the president of personal lines for Farmers Insurance.
Farmers Insurance’s Ongoing Support for Californians
Despite longstanding challenges in the California homeowners insurance market, Farmers Insurance remains the state’s largest property casualty insurer. It has continuously worked to promote an open and accessible insurance marketplace. Farmers is also focused on creating a sustainable property insurance environment and recently announced its intention to resume coverage offerings across various lines, including Farmers Condominium insurance and Farmers Renters insurance.
Furthermore, Farmers has resumed accepting applications for Business Insurance, catering to diverse industries, and revitalized various manufactured home coverage options through their Foremost Insurance offerings. Dinshaw emphasized, “With today’s announcement, we want to convey our dedication to improving the insurance market in California.”
New customers looking to take advantage of these offerings must meet applicable underwriting guidelines. For any inquiries, it is encouraged for consumers to reach out to their local Farmers agency for guidance.
About Farmers Insurance
Farmers Insurance operates as a collection of insurers providing an array of insurance products covering automobiles, homes, small businesses, and a wide range of financial services. Farmers Insurance Exchange is recognized as one of the largest companies in the United States and is featured in the 2025 Fortune 500 list, reflecting its reliability and extensive reach in the insurance sector. To learn more about Farmers Insurance, visit Farmers.com.
Frequently Asked Questions
What is the reason behind Farmers Insurance removing the cap?
Farmers Insurance is aiming to enhance the accessibility and availability of homeowners insurance policies in California amidst positive market trends.
How does the new rating plan impact policyholders?
The new rating plan will potentially allow for thousands of new policies, providing greater options for customers in distressed areas.
What new discounts are being offered?
Farmers Insurance is raising the discount for bundling home and auto insurance from 15% to 22%.
What types of insurance are being resumed?
Farmers is resuming coverage for condominiums, renters, and business insurance among others.
How can consumers get more information?
Consumers with questions are encouraged to contact their local Farmers agency for assistance.
