State Farm defends Illinois home insurance price hike, blames severe weather events for 'unsustainable' losses
Share this @internewscast.com

CHICAGO (WLS) — The largest home insurer in Illinois is defending the looming rate hike that will impact 1.5 million State Farm customers.

ABC7 Chicago is now streaming 24/7. Click here to watch

State Farm is set to raise home insurance rates by 27% beginning August 15, 2025.

The Bloomington-based insurer said the price increase comes as it anticipates more extreme weather, plus the rising repair costs from inflation.

Last year, for every dollar in premiums collected, State Farm paid out $1.26 in total costs.

The company informed ABC7 that their homeowners’ insurance sector in Illinois has been experiencing “unsustainable” financial losses for 13 of the past 15 years, necessitating a rate increase to ensure financial health.

“Last year alone in Illinois, we settled over $638 million in claims related to hail damage,” explained State Farm representative Gina Morss-Fischer. “This amount was second only to that of Texas, leading us to implement changes starting today for new policies and for existing policies by August 15th.”

Governor JB Pritzker said he wants the Illinois Department of Insurance to take all possible actions to combat this.

The governor called on the general assembly to pass a bill during veto session.

State Farm issued the following statement:

“Illinois residents deserve transparent discussions about insurance economics instead of political talk. Governor Pritzker’s remarks are factually inaccurate. State Farm does not transfer costs between states, and we have provided evidence to the Illinois Department of Insurance to support this. Our Illinois rates are based on claims and risks specific to Illinois.

The facts are simple: State Farm’s Illinois homeowners business has lost money in 13 of the past 15 years, including paying out $1.26 for every dollar collected in 2024. These losses are driven in part by severe weather damaging communities across the state. No company can absorb such losses forever and still be there for customers when disaster strikes.

State Farm has called Illinois home for more than a century. More than 21,000 people in Illinois proudly serve customers as State Farm agents, agent team members and State Farm employees. Our commitment is to keep rates competitive while staying financially strong-so we can deliver on our promises when people need us most.

We value our partnerships with state leaders and continue to work together toward finding solutions that allow us to continue serving customers and promote a healthy and competitive insurance market.”

Copyright © 2025 WLS-TV. All Rights Reserved.

Share this @internewscast.com
You May Also Like
FBI Director Kash Patel plans travel to China in fentanyl crackdown effort

FBI Director Kash Patel to Visit China in Strategic Move to Combat Fentanyl Crisis

FBI Director Kash Patel is scheduled to travel to China next month,…
Danny Masterson’s ex-wife files to change their daughter’s last name

Danny Masterson’s Former Spouse Seeks Last Name Change for Their Daughter

Bijou Phillips, the ex-wife of Danny Masterson, is reportedly seeking a court’s…
Freed Gaza Prisoner Reveals “Hell Beneath the Ground”

Inside Gaza’s Underground Nightmare: A Former Detainee’s Harrowing Tale

A recently freed Palestinian detainee has delivered devastating testimony detailing what he…
Serbian foreign minister proposes hosting Ukraine-Russia peace negotiations amid ongoing conflict

Serbia Offers Neutral Ground for Ukraine-Russia Peace Talks: A Diplomatic Step Towards Resolution

EXCLUSIVE: Marko Djuric, the Foreign Minister of Serbia, revealed to Fox News…

Ex-LAPD Officer Faces Murder Charges in Shocking 2015 Unarmed Homeless Man Shooting

In a significant legal development, a grand jury indictment was revealed on…
Trump’s $230M DOJ settlement bid likely has few legal backstops

Trump’s $230M DOJ Settlement Proposal Faces Legal Hurdles, Experts Say

Former President Donald Trump is pursuing a substantial compensation claim, potentially amounting…
Rubio says commitment to Taiwan won't change amid trade talks with China

Rubio Affirms Unwavering Support for Taiwan Despite Ongoing China Trade Discussions

On Sunday, Secretary of State Marco Rubio reaffirmed the United States’ enduring…
Experts slam UN court ruling on Israel, warn opinion is also 'a real danger to the US'

Experts Criticize UN Court Decision on Israel, Caution of Potential Risks to the US

In a controversial development, experts on international law and the United Nations…
Rubio, Huckabee meet with families of US citizens whose remains are being held hostage in Gaza

Rubio and Huckabee Engage with Families of Americans Held in Gaza

In a significant diplomatic effort, Secretary of State Marco Rubio, alongside U.S.…
Chicago immigration activity: Federal agents detain worker in Old Irving Park, appear to use tear gas; fear disrupts local parade

Federal Agents Detain Worker in Old Irving Park, Tear Gas Suspected; Local Parade Plunged into Chaos in Chicago

CHICAGO (WLS) — On Saturday, federal agents were once again active on…
'I am not done': Kamala Harris hints at another White House bid

Kamala Harris Teases 2024 White House Run: ‘I Am Not Done’ Signals Potential Presidential Campaign

In a recent interview with the BBC, former Vice President Kamala Harris…
Dems Cry ‘Voter Intimidation’ as DOJ Deploys Election Monitors to CA, NJ

DOJ Sends Election Monitors to California and New Jersey Amidst Voter Intimidation Concerns

The Department of Justice revealed on Friday its plan to deploy election…