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Farmers Ends Cap on New Home Policies in California

Insurer credits regulatory reforms in decision to lift ban on selling over 9,500 new policies per month.

Katie Powers
Written byKatie Powers
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Katie PowersSenior Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

  • NPN: 20564519

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Chris Schafer
Edited byChris Schafer
Chris Schafer
Chris SchaferDeputy Managing Editor, News and Marketing Content
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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John Leach
Reviewed byJohn Leach
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John LeachSenior Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 8+ years editing experience

  • NPN: 20461358

John leads Insurify’s copy desk, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

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Published | Reading time: 2 minutes

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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.

Katie Powers
Katie PowersSenior Editor

Katie Powers is a Senior Editor at Insurify with a producer’s license for property and casualty insurance in New York and expertise in personal finance and auto insurance topics. She strives to help consumers make better financial decisions. Prior to joining Insurify, she completed her undergraduate and graduate degrees at Emerson College. Her work has been published in St. Louis Magazine, the Boston Globe, and elsewhere. Connect with Katie on LinkedIn.

Chris Schafer
Edited byChris SchaferDeputy Managing Editor, News and Marketing Content
Chris Schafer
Chris SchaferDeputy Managing Editor, News and Marketing Content
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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John Leach
Reviewed byJohn LeachSenior Insurance Copy Editor
Photo of an Insurify author
John LeachSenior Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 8+ years editing experience

  • NPN: 20461358

John leads Insurify’s copy desk, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

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