League City homeowners with State Farm policies face a 4% rate increase starting Nov. 1, days after state officials declared insurance costs are falling.

State Farm Lloyds, which holds 19% of the Texas homeowners insurance market, filed the increase on July 29 with the Texas Department of Insurance (TDI). The filing estimates 751,000 of the company's roughly 987,000 Texas policyholders will pay more. More than 135,000 policies would rise 10% or more, according to an ABC13 investigation first reported Saturday, Oct. 10.

State Farm alone will raise rates on more policyholders than the 700,000 TDI said are getting cuts across all companies combined.

TDI issued a news release on Thursday, Oct. 8, declaring that homeowners insurance rates are "trending down for many Texans" and citing a 4.3% average decrease in filings over the past 90 days. TDI spokesperson Mistie Hinote confirmed to ABC13 that the figure is a simple average, not weighted by the number of policyholders or premium volume. A small insurer counts the same as the state's largest.

In the Houston area, State Farm's filing projects Harris County rates rising 3.6%, Fort Bend County 5.3% and Montgomery County 5.8%. Galveston County is not broken out separately in the filing. League City residents with State Farm homeowners policies will see the statewide increase, though no county-specific figure is available.

State Farm's own internal analysis showed a rate need of 10.9%, but the company filed for 4%. In its filing, State Farm cited severe storms, rising insured home values and poor liability loss experience as putting "upward pressure" on rates.

TDI has not finished reviewing the filing. Regulators filed a written objection asking State Farm to justify the increase given favorable 2025 industry results and falling reinsurance costs. Under Texas' file-and-use system, insurers can begin charging new rates before the state completes its review. Insurance Commissioner Amanda Crawford estimated on Tuesday, Oct. 6, that about one-third of Texas insurance rates take effect immediately after filing.

State Farm's Texas homeowners business recorded a net underwriting profit of about $541 million in 2025, according to TDI's market report.

The rate increase comes after years of sharp premium growth. TDI data shows weighted average homeowners rate changes of 21.1% in 2023 and 18.7% in 2024 before moderating to 4.3% in 2025. Crawford told the Texas House Insurance Committee on Monday, Oct. 5, that the average Texas homeowners premium rose 79% in six years, from less than $2,000 in 2020 to more than $3,500 in 2026.

"We need to acknowledge that the past few years have been very, very difficult for Texans," Crawford told lawmakers at the hearing, as reported by Community Impact.

State Farm is not the only insurer raising rates. Two Allstate companies filed auto rate increases of 6.9% and 5.5%, both taking effect Thursday, Oct. 15, for renewing policies. State Farm, by contrast, filed a 0.5% auto rate decrease effective Nov. 25.

Many League City homeowners also carry separate wind policies through the Texas Windstorm Insurance Association (TWIA) because Galveston County is one of 14 coastal counties where TWIA provides wind coverage. Those policies are separate from the State Farm filing.

Crawford has suggested the Texas Legislature consider adding a delay between a rate filing and its use in the market. The next regular legislative session begins in mid-January 2027.