State Farm is raising homeowners insurance rates in Illinois by 8% this fall, WGLT reported Oct. 7. The new rates took effect Oct. 1 for new policies, and existing customers will see the increase when their policies renew, starting Dec. 1.
The increase comes on top of a 27% Illinois homeowners rate hike the Bloomington, Illinois-based insurer put in place in 2025.
State Farm, in a statement to the station, pointed to "the effects of severe weather trends that are more frequent and severe" and rising "related repair costs," which it said are squeezing insurance profitability. The company said it has "paid out $1.22 in claims and expenses for every $1 in premium collected the past three years in Illinois," and that the changes are needed so it can keep paying claims.
State Farm said it reviews rates on a regular basis, and that homeowners rates are built on its current projections for rebuilding and repair costs, weather, labor, materials and conditions specific to each state. It added that an earlier improvement in one of those factors does not settle what Illinois claims are expected to cost now.
"We know insurance is an important part of every family's budget, and we understand that any change in cost matters," the company said.