Farmers gets approval for new California homeowners rating plan

Farmers received approval from the California Department of Insurance for a new homeowners rating plan tied to Insurance Commissioner Ricardo Lara’s Sustainable Insurance Strategy. Effective September 15, 2026, the plan increases the home and auto bundling discount from 15% to 22% and offers wildfire mitigation discounts for Smart Plan Home and Next Generation Home policyholders.

The filing includes an average statewide rate increase of 1.5%, though bundled customers are generally expected to see lower rates. Farmers said the plan could add several thousand new policies in distressed areas over the next two years.

“We continue to see encouraging signs that the California insurance marketplace is strengthening and we want to be well-positioned to grow and provide improved coverage offerings to California consumers. Together, our new homeowners and auto rating plans provide consumers with multiple opportunities to save, especially through increased discounts for bundling policies. Farmers is proud to be one of the few home insurers that never stopped offering new home policies in the state and we remain committed to the California marketplace. It’s also important to note that we have been able to stay in the market and continue to serve our customers because key stakeholders, including the California Department of Insurance, have remained steadfast in working toward meaningful solutions to reinvigorate the state’s insurance marketplace.” – Behram Dinshaw, president of personal lines for Farmers Insurance.