State Farm wildfire insurance review
The largest U.S. home insurer — but pulled back hard in California.
Founded
1922
Headquarters
Bloomington, Illinois
Financial strength
A++ (Superior)
Channel
National admitted carrier
The largest U.S. homeowners insurer by market share — and the company at the center of California’s insurance crisis.
FireRisk.ai rating
Our editorial scores for a wildfire-exposed home — appetite weighted heaviest. Not a financial rating; not carrier-supplied. See how all carriers rank →
Wildfire appetite & overview
State Farm is the biggest homeowners insurer in the country and still the default in much of the interior West. But it became the face of California’s crisis: it paused new homeowner applications statewide in 2023 and filed large non-renewal batches in high-hazard ZIPs, then sought emergency rate increases after the January 2025 Los Angeles firestorm. In high-risk California areas you often cannot get a new State Farm policy at all; elsewhere it remains competitive, especially bundled.
Claims & customer satisfaction
Massive scale and a deep local-agent network, but State Farm did not place in the top tier of J.D. Power’s 2025 U.S. Home Insurance Study (led by Amica, Chubb and Erie). It paid roughly $6.2 billion in claims in 2025, largely tied to the LA wildfires.
Strengths
- +Top-tier financial strength (A++)
- +Huge local-agent network for in-person help
- +Strong auto + home bundle discounts
- +Wildfire-mitigation discounts in several states
Watch-outs
- –New homeowner business paused in California since 2023
- –Non-renewals concentrated in high-hazard ZIPs
- –Appetite for WUI homes has narrowed sharply
- –Raised California homeowner rates 17% in 2025
What it costs
California regulators approved a 17% emergency homeowners rate increase effective June 1, 2025 (cut down from the 21.8% State Farm requested). A March 2026 settlement with the Department of Insurance and Consumer Watchdog kept that 17% in place.
How to improve your odds of being written
- 1Be in a lower-to-moderate hazard ZIP — appetite is sharply ZIP-driven
- 2Bundle auto + home for the best pricing and acceptance odds
- 3Document a Class-A roof and defensible space for mitigation credit
Recent developments
What’s changed lately — dated so you can judge how current it is.
Paused new homeowner applications across California, citing wildfire exposure and rising costs.
17% emergency homeowners rate increase took effect in California after the January 2025 LA firestorm (42,000+ claims).
Settlement with CA regulators kept the 17% increase and extended a moratorium halting mass non-renewals through 2026.
Best for
Homeowners in lower-to-moderate wildfire ZIPs, or existing customers bundling auto and home.
How to get a quote
Through local State Farm agents — but new high-risk California policies are largely unavailable as of 2026.
Bottom line
A strong, financially rock-solid choice where they’ll still write you. In distressed California WUI markets, treat State Farm as unlikely and line up alternatives.
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State Farm wildfire insurance FAQ
Does State Farm cover homes in high fire-risk areas?
State Farm is the biggest homeowners insurer in the country and still the default in much of the interior West. But it became the face of California’s crisis: it paused new homeowner applications statewide in 2023 and filed large non-renewal batches in high-hazard ZIPs, then sought emergency rate increases after the January 2025 Los Angeles firestorm. In high-risk California areas you often cannot get a new State Farm policy at all; elsewhere it remains competitive, especially bundled.
Is State Farm financially strong enough to pay a wildfire claim?
State Farm carries an AM Best financial-strength rating of A++ (Superior), indicating its assessed ability to meet ongoing insurance obligations. Ratings can change, so confirm the current rating before buying.
Who is State Farm best for?
Homeowners in lower-to-moderate wildfire ZIPs, or existing customers bundling auto and home. A strong, financially rock-solid choice where they’ll still write you. In distressed California WUI markets, treat State Farm as unlikely and line up alternatives.
Disclosure: This is an independent, research-based editorial review. FireRisk.ai is not affiliated with, endorsed by, or acting on behalf of State Farm. The company name and any AM Best rating are used for identification and comparison only. This is not insurance or financial advice, and we are not a licensed insurance agency. Availability, appetite, ratings, and pricing change and vary by ZIP and home — verify everything directly with the carrier before purchasing. We may be compensated when you request quotes through a partner.