State Farm Raises Illinois Home Insurance Rates 8%, Affecting 1.5 Million Homeowners

State Farm will raise homeowners insurance rates in Illinois by 8% this fall, following last year's 27% increase driven by extreme weather. The new rates took effect for new policies on Oct. 1, while existing customers will see higher bills in December. The increase adds roughly $10 per month to the average Illinois homeowners insurance bill for the company's 1.5 million policyholders in the state. A State Farm spokesperson attributed the hike to catastrophic weather damage driving up repair costs. The company said it has paid out $1.22 in claims for every $1 in premiums. Last year's 27% increase drew pushback from residents and Gov. JB Pritzker, who in August signed legislation allowing the Illinois Department of Insurance to dispute excessive rate increases. Insurers must now give customers 60-day notice for increases above 10%. Nationally, home insurance rates across all providers rose 47% from 2020 to 2025, per LendingTree.