State Farm raises Illinois home premiums by 8%

Illinois homeowners insured by State Farm face an average premium increase of 8%. New policies began using the higher rates October 1, 2026, while the change reaches current customers through renewals effective December 1. State Farm puts the typical added cost near $10 monthly, or about $120 per year. Each household’s bill will vary with its coverage and existing price.

Storm expenses and pricier home repairs are behind the adjustment, according to the insurer. During 2026, Illinois homes and vehicles generated 96,000 claims tied to catastrophic weather. Residential catastrophe claims were also 50% higher than the average across the prior 10 years. The increase follows State Farm’s average statewide jump of 27.2% in 2025, so many customers are absorbing another rise on top of last year’s change.

Some renewing policies are also subject to a minimum wind-and-hail deductible of 1%. That percentage generally applies to the home’s insured amount, rather than the repair invoice. With $300,000 of applicable dwelling coverage, for example, the homeowner’s share could be $3,000 before covered storm damage is paid. Higher premiums may also flow into mortgage escrow payments after a lender’s analysis. Illinois has approved stronger state review of home and auto insurance pricing, but those provisions do not erase this increase.