Is State Farm Increasing Insurance Rates for Texas Homeowners?
Yes — and the timing is significant. State Farm filed for a 4% statewide homeowners rate increase on July 29, 2026, even as TDI was announcing that rates were trending downward for many Texans. Here is the complete picture.
The Filing: 751,000 Texas Policies Facing Higher Rates
State Farm Lloyds, Texas’s largest homeowners insurer, filed a 4% statewide homeowners rate increase that would affect an estimated 751,000 of its roughly 987,000 Texas homeowners policies — while 234,000 policies would actually see decreases. By State Farm’s own estimate, it will raise rates on more homeowners policies than the 700,000 policyholders TDI said are getting cuts across all companies. The rate increase is targeted at renewals beginning November 1, 2026.
Houston Is Bearing the Brunt
The geographic distribution of the State Farm increases hits the Houston metro especially hard. In the Houston area, State Farm’s filing shows Harris County rates increasing by an average of 3.6%, Fort Bend County 5.3%, and Montgomery County 5.8%. These increases come on top of years of prior hikes — the average Texas homeowners premium rose from around $1,500 per policy in 2020 to roughly $2,460 in 2025 — about 63% higher.
TDI Is Questioning the Increase Given State Farm’s Profits
The Texas Department of Insurance has pushed back on the filing in an unusually direct way. TDI sent State Farm a letter asking the company to explain its “higher rate need given assumed favorable industry and company results in 2025.” That question is pointed — State Farm’s Texas homeowners business recorded a net underwriting profit of about $541 million in 2025, according to TDI’s annual market report. State Farm responded by citing poor liability loss experience, severe storms in Texas, and rising insured home values as factors putting upward pressure on rates despite favorable 2025 results.
Other Carriers Are Also Filing Increases
State Farm is not the only carrier raising homeowners rates. Besides State Farm, Amica Mutual filed a 4% increase, and AIG Property Casualty filed a 15.2% increase. The divergence between carriers filing decreases and carriers filing increases underscores that the Texas insurance market is not moving uniformly in any single direction.
What Texas State Farm Policyholders Should Do
TDI has not yet completed its review of State Farm’s filing — meaning the increase is not yet finalized. Insurance Commissioner Amanda Crawford has encouraged insurance companies to look at their data to determine if they can support and adopt lower rates. Texas homeowners should shop competing carriers immediately using the competitive window before State Farm’s renewal increases take effect. Visit tdi.texas.gov to check rate filings for your specific carrier and contact the TDI Help Line at 800-252-3439 with any questions.
