Farmers pulled back in California. Then it reversed course.

No. Farmers limited new California homeowners business in 2023 but never stopped writing it, and it removed its cap on new policies in November 2025. One separate company in the group, Farmers Direct, did leave California. Here is the dated sequence.

In 2023, Farmers narrowed what it would write in California. In April 2023, it was reported to have closed several programs to new applications, including its Next Generation Homeowners, renters, and condominium programs. In July 2023, it capped new applications for its main homeowners program, Smart Plan Home, statewide, citing inflation, severe weather, and rising reconstruction costs. Unlike some competitors, it did not stop writing new homeowners business entirely.

Two more changes followed that year. In late 2023, Farmers was reported to have begun non-renewing homeowners policies that did not meet its wildfire eligibility guidelines for new business.

Then in November 2023, a separate company within the Farmers Insurance Group filed to leave California entirely.

That company was Farmers Direct Property and Casualty Insurance Co. That affected more than 100,000 policies, including roughly 20,000 homeowners policies. Most of those customers were offered a transition to another Farmers-affiliated insurer.

The reversal came in stages, each one announced. In December 2024, Farmers announced it would raise the cap from 7,000 to 9,500 new policies for each month.

It also reopened condominium, renters, and personal umbrella coverage, citing an improved state insurance marketplace.

In November 2025, it eliminated the cap entirely and filed a new homeowners rating plan with the state. It also said it would market to roughly 300,000 consumers in areas the state designates as distressed. In May 2026, the California Department of Insurance approved that plan at an average statewide increase of 1.5%, effective September 15, 2026.

If you hold a Farmers homeowners policy today, nothing about this history changes it. Existing policies are serviced normally.

Your price is billed, claims are handled, and coverage continues on its terms. The event that would change things is a non-renewal notice.

If one arrives, California law requires it to be delivered or mailed at least 75 days before your policy expires. That is time enough to search the market properly, if you use it.

The approved rating plan applies from September 15, 2026, to new and existing Smart Plan Home and Next Generation Home customers. The average change is an increase of 1.5% statewide, reduced from the 6.99% Farmers requested.

The plan also raises the home and auto bundling discount from 15% to 22%. It adds savings for wildfire safety work too, so individual bills can move in either direction. Your renewal notice, not the average, tells you your number.

If your policy was with Farmers Direct, that withdrawal ran on the schedule announced in 2023. New business stopped on September 15, 2023, and non-renewal notices began with policies expiring December 17, 2023. Most customers were offered a move to another Farmers-affiliated insurer. Bristol West, 21st Century, and Foremost customers were not affected.

The 2023 headlines may have left you with the wrong idea. Your home did not become uninsurable when one insurer narrowed its rules. It also did not become automatically insured now that the same insurer has widened them. One company's willingness to insure, in either direction, is one company's answer.

The pullback was also never about individual homeowners. Farmers framed its 2023 changes around inflation, severe weather, and rising reconstruction costs, and framed the reversal around an improved state insurance marketplace. Both are statements about the company's economics, not about your roof.

If Farmers turned you away or non-renewed you in 2023 or 2024, that decision came from the rules in place then. Those rules have since moved.

In May 2026, the Department of Insurance counted Farmers among six of the state's ten largest home insurance groups committing to stay and grow under its Sustainable Insurance Strategy. It also called Farmers California's second-largest home insurer.

None of that promises your home a yes. It means the answer is worth asking for again.

If you are shopping, whether after a non-renewal or just after the news, the order of the search matters. Standard insurers come first, and with its cap gone, Farmers is one of them again.

But one insurer is one answer. How much risk they take differs enough that the same home can be turned down at one standard insurer and written at the next. So the search should cover the standard market as a whole.

If the standard market says no, specialty insurers come next. This is the regulated part of the industry built for the homes standard insurers step away from. It wrote more than 300,000 California home policies in 2025, up from about 50,000 in 2023, according to the Surplus Line Association of California. These are real policies, arranged through licensed specialty insurance agents.

The California FAIR Plan, the state's fallback fire insurance program, comes last. It is real coverage, and for some homes it really is the only option.

It also covers less than a standard homeowners policy. It does not cover water damage from a burst pipe, theft, or someone getting hurt on your property. FAIR Plan dwelling rates are 29.1% higher on average for new policies and renewals on or after October 15, 2026, the Plan announced in May 2026. Some homes see more than that, and some see less. It belongs at the end of a search, not the start of one.

What to do depends on which position you are in, but the moves are short.

Whichever list you are on, the rule is the same: check standard and specialty insurers, not just one company's news.

• If you hold a Farmers policy: read your next renewal notice closely. The September 15, 2026 rating plan changes the average by 1.5%. But the bundling discount and the wildfire safety-work savings mean your own change can look different. Compare the yearly price, the rebuild amount, and the deductible together.
• If your renewal looks high: see what standard and specialty insurers would charge before you decide. A renewal is an offer, not an obligation.
• If you receive a non-renewal notice: check the postmark against your expiration date. You are entitled to at least 75 days, and the days are for searching, not waiting.
• If Farmers turned you down in 2023 or 2024: the market has moved since then, at Farmers and elsewhere. A fresh search is a new answer, not a repeat of the old one.
• If you were a Farmers Direct customer: your options were never limited to the transition offer. The same full search applies to you.