State Farm Raises Illinois Homeowners Insurance Rates 8%, Adding $10 Monthly to Average Bill

State Farm is raising homeowners insurance rates in Illinois by nearly 8%, effective October 1, 2026, for new policies and December 2026 for existing customers, according to a state filing. The increase adds about $10 per month to the average bill. The Bloomington-based insurer, which covers roughly 1.49 million Illinois homeowners, cited catastrophic weather losses. State Farm said it paid $1.22 in claims and expenses for every $1 in premiums collected in Illinois over the past three years. The move follows a 27.2% increase last year and a new 1% minimum deductible on wind and hail claims, which drew criticism from consumer groups and Gov. JB Pritzker. In August, Pritzker signed legislation empowering the Illinois Department of Insurance to review and challenge rate increases deemed excessive. Nationally, U.S. home insurance rates rose 46.8% from 2020 to 2025, with Illinois ranking seventh at 68%, according to LendingTree.