Farmers Ends Cap on New Home Policies in California | Insurify

Farmers Insurance has officially ended its cap on new home insurance policies in California, the insurer announced on Nov. 21, 2025. Previously, the company limited the number of new home insurance policies it issued in the state to 9,500 per month. Farmers is one of the state's largest property insurers.

Ending the cap will open up coverage availability for California homeowners, condo owners, and renters, Farmers said.

"By removing the cap on offering new homeowners policies, Farmers is doubling down on its commitment to California homeowners, expanding choice and availability for consumers across the state," Behram Dinshaw, the insurer's president of personal lines, said in an announcement on the company's website.

In June 2023, Farmers initially set its cap at a monthly maximum of 7,000 new home insurance policies to mitigate its loss risks in the state. It then increased that number to 9,500 in December 2024.

Farmers said it's making this change in anticipation of further improvement in California's home insurance market, largely due to new guidelines and efforts from the California Department of Insurance (CDI), according to a company press release.

"We are also reaffirming our commitment to serving the needs of residents by submitting a new Sustainable Insurance Strategy-inspired rating plan, which is designed to expand our offerings to more homeowners across California," Dinshaw said.

What's in Farmers' new rating plan?

Farmers' new rating plan, influenced by California's Sustainable Insurance Strategy, includes a few key changes to coverage for homeowners in the state.

The filing features requests for an average statewide rate increase of 6.99% and an improved home and auto bundling discount of 22% (up from 15%).

It also includes a commitment to try to increase the number of policies in locations the CDI designates as "wildfire-distressed" by a minimum of 5% throughout a period of two years.

The Sustainable Insurance Strategy, initially announced by Insurance Commissioner Ricardo Lara in 2023, aims to stabilize and improve the state's insurance market, increase coverage availability, and address consumer needs.

The plan requires insurers to increase their policy numbers in high-risk areas impacted by wildfires to help prevent the continued growth of California's insurer of last resort, the FAIR Plan.

Starting in 2026, Farmers plans to launch direct marketing efforts to reach around 300,000 potential consumers. It will also provide its insurance agents with information to help identify and serve new customers.

What's next? Waiting for plan approval

Farmers estimates the new plan, if approved, will add more than 5,500 new policies in wildfire-distressed areas.

Before Farmers can implement the changes outlined in its rate filing, the California Department of Insurance will need to approve the request.

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