State Farm is raising Illinois homeowners insurance rates by 8%, and customers already on a policy will see it when they renew on or after December 1. The increase follows a 27% rise in 2025. State Farm told WGLT it has paid out $1.22 in claims and expenses for every $1 in premium it collected in Illinois over the past three years.
Prices for new State Farm policies in Illinois changed on October 1. People who are already insured keep their current rate until their renewal date comes up.
State Farm’s reasons and the numbers
The company’s statement to the public radio station, reported by WGLT and NPR Illinois on October 7, says the increases are needed to keep paying future claims. State Farm pointed to “the effects of severe weather trends that are more frequent and severe” and to rising repair costs. “Homeowners rates reflect current expectations for repair and rebuilding costs, severe weather, labor, materials and other state-specific conditions,” the statement said…