Governor Pritzker Slams State Farm’s 27% Homeowners Insurance Rate Hike
Governor JB Pritzker is calling out State Farm for what he sees as an unfair rate increase on Illinois homeowners. According to Insurance Business Journal, the insurer recently filed a 27.2% rate hike that will affect nearly 1.5 million policyholders in the state. Some homeowners could see increases as high as 39.9%.
Pritzker believes the hike is unjustified and says it shifts the burden of disaster-related costs from other states onto Illinois residents. “Hard-working Illinoisans should not be paying more to protect beach houses in Florida,” he said. He’s urging the Illinois Department of Insurance and lawmakers to step in and consider legislation to give the state more authority in reviewing insurance rates.
Currently, Illinois is one of the few states where insurance companies can implement rate changes without regulatory approval. That’s something Pritzker wants to change. He’s pushing for reforms that would require insurance carriers to submit rate justifications and give the Department of Insurance the power to approve or deny them before they take effect.
State Farm, on the other hand, argues the increase is tied directly to growing losses in Illinois. In a statement quoted by Insurance Business Journal, the company said it paid out $1.26 in claims for every $1 collected in premiums. They also noted Illinois was second only to Texas in hail-related losses, with more than $638 million in damage reported in 2023 alone.
In addition to raising rates, State Farm is rolling out new minimum wind and hail deductibles and limiting claim payouts for certain roof and siding repairs. Per the Insurance Business Journal, Pritzker says these changes will cost families hundreds more each year without providing added protection.
The broader conversation now centers on whether Illinois should follow the lead of other states in tightening oversight of the property insurance market. As homeowners across the state brace for higher bills, it’s a debate that isn’t going away anytime soon.
Source:
“JB Pritzker challenges State Farm’s homeowners rate hike in Illinois,” Insurance Business Journal, July 2025.
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