Illinois Homeowners Face State Farm 7.9% Rate Hike as Storm Losses Mount
Illinois homeowners got a pointed reminder of the state's worsening storm risk on Oct. 5, when State Farm filed for a 7.9% average rate increase covering more than 1.4 million policies statewide. That filing, tracked under number SFMA-135045614 with the Illinois Department of Insurance, is the latest pressure point in a market that has seen...
Published: Oct 7, 2026
Illinois homeowners got a pointed reminder of the state's worsening storm risk on Oct. 5, when State Farm filed for a 7.9% average rate increase covering more than 1.4 million policies statewide.
That filing, tracked under number SFMA-135045614 with the Illinois Department of Insurance, is the latest pressure point in a market that has seen back-to-back double-digit increases. As Insurance Business reported, State Farm's own actuaries calculated the program needed rates 12.5% higher, the company settled on 7.9% in its actual request. The Save Max Quote Index, drawn from 3.3 million+ real quote requests, confirms that Illinois homeowners shopping for alternatives are already seeing elevated starting premiums across competing carriers. If you are an Illinois homeowner, the short answer is: expect roughly $10 more per month on your renewal, with the biggest changes tied to your roof type.
State Farm Files 7.9% Illinois Homeowners Rate Hike, Here's What's in the Filing
State Farm Fire and Casualty Co. submitted its rate filing to the Illinois Department of Insurance on Oct. 5, according to Insurance Business. The department logged the filing status as "Filed", not "Approved." Illinois remains a use-and-file state, which means carriers can put new rates into effect before regulators sign off on them.
The timeline matters for policyholders. New business written on or after Oct. 1 already falls under the new rates. Renewals follow starting Dec. 1. That narrow window means Illinois homeowners whose policies renew this winter could see changes on their very next bill.
The scope of the filing is significant. It covers 1,483,264 policies and is projected to add $190.3 million in written premium statewide. Spread across those policies, that averages to roughly $128 per year per policyholder, which State Farm has characterized as approximately $10 a month more for the average customer.
That average, however, masks real variation depending on what type of property you insure. Standard homeowners, renters, and condo owners are all moving in different directions under this single filing.
Why Catastrophe Losses Are Driving the Numbers
State Farm does not hide its reasoning in the filing. The company's actuaries point directly at catastrophe losses as the engine behind the rate need.
For standard homeowners policies, expected catastrophe losses account for 55.2% of premium. All other losses combined account for 27.9%. The filing states the rate need is "primarily driven by expected catastrophe losses." In a September response to Illinois regulators, State Farm defined a catastrophe as any event producing at least 500 claims and $500,000 in losses.
The company's own Illinois track record supports the request. State Farm posted a combined ratio of 130.7% in 2023, 126.6% in 2024, and 109.1% in 2025. A combined ratio above 100% means the company is paying out more in losses and expenses than it collects in premium.
Zoom out further and the picture is even starker. Over the 15 years from 2011 through 2025, State Farm's Illinois homeowners book produced an underwriting profit in only two years: 2021 and 2022. The 15-year combined ratio landed at 114.6%.
Recent storms are intensifying the pressure, even though this year's events are not yet in the filing's data. State Farm has said it paid more than $799 million for Illinois storm losses through July alone. A derecho in August pushed U.S. severe convective storm losses for the year past $35 billion, with Illinois identified as the hardest-hit state.
This filing also arrives on top of two consecutive large increases. State Farm raised Illinois homeowners rates 12.5% in 2024, followed by a 27.2% increase last summer, the latter of which also introduced a minimum 1% wind and hail deductible. Before 2024, the company's Illinois homeowners rate changes had not exceeded 4.4% in any single filing since at least 2015.
According to BestLink data cited in the source reporting, State Farm wrote 33.68% of Illinois homeowners premium in 2025, more than Allstate and Country Financial, the next two largest writers, combined.
How Much Each Policy Type Will Change
The 7.9% overall average covers three product lines moving in opposite directions. The table below breaks down the direction of change and the actuarial indication behind each:
| Standard Homeowners | +8.5% | +13.1% |
| Renters | +5.8% | Not specified in filing |
| Condominium Unitowners | -3.0% | Not specified in filing |
Standard homeowners policyholders carry the heaviest load, with an 8.5% increase against an indicated need of 13.1%. The 4.6-point gap between what actuaries said was needed and what State Farm actually filed suggests the company may face continued pressure to return for additional increases. State Farm has not publicly announced any future filings.
Renters see a more modest 5.8% increase. Condo unit owners are the exception, receiving a 3% reduction under this filing. Across all three product lines combined, the changes add $190.3 million in written premium when applied to the 1,483,264 affected policies.
For Illinois consumers exploring their options, the Illinois auto insurance market is experiencing parallel upward pressure, and understanding how carriers price risk in the state can help you negotiate more effectively at renewal.
Roof Age and Material Now Play a Bigger Pricing Role
Beyond the headline rate change, this filing rewrites how individual Illinois homes are priced, and roofs are the focal point.
Homes covered with basic 3-tab asphalt shingles will now pay a new 5% surcharge on the wind and hail portion of their premium. State Farm says the surcharge is based on a loss ratio analysis comparing shingle types.
On the other end of the spectrum, discounts for impact-resistant roofs remain generous, but they now erode as the roof ages. A new roof in the highest-rated impact-resistant class earns a 50% discount on the hail portion of the premium. By the time that same roof reaches 15 years old, the discount shrinks to 34%. Roofs in the next class down start at a 42% discount and fall to 24% as they age.
"For agents and brokers, the most visible effect at renewal will be on roofs. Homes with older or basic shingle roofs will see the largest changes, and the difference in price between a new impact-resistant roof and an aging one is now larger."
The practical implication is that a roof upgrade is no longer just a home improvement decision, it is a direct premium lever. The financial case for replacing an aging basic shingle roof with an impact-resistant alternative is now measurably stronger under this pricing structure.
State Farm is also updating how it prices individual policyholders through its Customer Rating Index. The company is adding external auto data, public records, and additional consumer credit information to that model. The Illinois Department of Insurance sent letters on Sept. 3 and Sept. 21 questioning specific elements of the model, including an "Insight Score." State Farm filed its answers as confidential.
New State Laws Will Tighten Rate Review Starting in 2027
Illinois policyholders will gain new protections, but not until mid-2027. Governor JB Pritzker signed two bills on Aug. 4 that will reshape how the Department of Insurance reviews rate filings.
House Bill 4273 covers homeowners insurance. Senate Bill 714 covers auto insurance. Together, they give the Department of Insurance authority to challenge rates it finds "excessive, inadequate or unfairly discriminatory" and to order rebates if those standards are violated.
A separate provision in HB 4273 requires homeowners insurers to give policyholders 60 days' notice before raising a renewal premium by more than 10%. Under the current use-and-file system, consumers often learn about large increases only when their renewal arrives.
"If you're telling your customers that rate hikes are necessary, you should be able to prove why," Pritzker said when he signed the bills.
Both laws take effect July 1, 2027. State Farm and the main industry trade groups opposed the legislation, arguing the laws do not address the underlying drivers of rate increases, rising repair costs and more severe weather.
Neighboring states are watching similar dynamics unfold. Indiana homeowners facing rate questions can track how Indiana auto insurance pricing trends compare, while Missouri policyholders can benchmark against Missouri car insurance market conditions to see how regional catastrophe exposure is being priced differently across state lines.
The SMQI shows that consumers in catastrophe-exposed Midwest markets are increasingly cross-shopping at renewal rather than accepting automatic increases from their current carrier.
What this means for you
Check your policy's effective date now, if your homeowners renewal falls after Dec. 1, budget for the higher premium and pull competing quotes before that date arrives. Evaluate your roof: if you have aging 3-tab shingles, get a professional assessment of the cost difference between basic replacement and an impact-resistant upgrade, since the pricing gap under this new filing makes that calculation more consequential than it was a year ago. Track the SERFF filing directly through the Illinois Department of Insurance public portal using tracking number SFMA-135045614 to monitor any regulatory responses. Finally, compare quotes from other Illinois homeowners carriers, State Farm holds 33.68% of the state market, which means significant capacity exists elsewhere.
FAQ
When do State Farm's new Illinois homeowners rates take effect?
New business written on or after Oct. 1 is already subject to the new rates. Renewal policies move to the new rates starting Dec. 1. The filing was submitted to the Illinois Department of Insurance on Oct. 5.
Why is State Farm raising homeowners rates in Illinois?
State Farm's actuaries project that expected catastrophe losses account for 55.2% of premium for standard homeowners policies. The company's Illinois combined ratio exceeded 100% in 2023, 2024, and 2025, and the 15-year combined ratio from 2011 through 2025 was 114.6%, meaning the book was unprofitable in 13 of those 15 years.
Will my rate go up by the same amount as the 7.9% average?
Not necessarily. The 7.9% is a weighted average across three product lines. Standard homeowners rates rise 8.5%, renters rates rise 5.8%, and condo unitowners actually receive a 3% reduction. Your individual change will also depend on roof type, age, and updates to the Customer Rating Index.
What is Illinois doing to protect homeowners from large rate increases?
Governor JB Pritzker signed HB 4273 and SB 714 on Aug. 4. Starting July 1, 2027, the Department of Insurance can challenge excessive rates and order rebates. Homeowners insurers must also give 60 days' notice before raising renewal premiums by more than 10%.
Can I review the State Farm filing myself?
Yes. The filing is publicly available through the Illinois Department of Insurance's SERFF filing portal. The tracking number is SFMA-135045614. Consumers and agents can use that number to follow any regulatory correspondence or changes to the filing.
About Taleah McGuire
Taleah McGuire is a Regional Analyst at Save Max Auto with 11+ years of insurance experience including senior roles at Kentucky Farm Bureau. She covers regulatory news, state-specific reform legislation, and traditional carrier coverage. Read more from Taleah McGuire →
Edited by Aaren Ramon.
Methodology
This article is grounded in the source linked above. Save Max Auto data points referenced here are drawn from the Save Max Quote Index (SMQI), a proprietary instrument reflecting 3,364,317 real consumer quote requests submitted to savemaxauto.com. State and carrier rankings reflect the lifetime dataset; year-over-year shifts reflect a rolling 12-month window. The index is refreshed monthly. External authority figures referenced (NAIC, NHTSA, state regulators) reflect the most recent public data releases available at time of writing.
Sources
- Primary source: Insurance Business, "State Farm set to raise rates by almost 8%"