Farmers is updating how policyholders pay for homeowners coverage in Texas, introducing higher fees and new installment structures while keeping overall rates unchanged.

The update, effective February 1, 2026 for both new and renewal business, replaces the existing payment plan structure but does not impact base premiums or rating factors. The filing was submitted on November 21, 2025 and approved without additional action on January 15, 2026 under a file-and-use framework.

At its core, this is a billing and fee alignment move. Farmers states it has not materially changed billing practices in over a decade and is now adjusting fees to better reflect processing costs across different payment methods.

The changes include an increase in non-sufficient funds fees to $25 and higher installment fees, with paper billing rising to $7 per installment. The carrier is also introducing new charges tied to payment method: $2 per installment for autopay via bank transfer and $5 per installment for credit card payments.

The structure of payment plans remains largely intact, with options ranging from full pay to multi-installment plans, including flexible schedules and account-level billing for franchise customers. What changes is the cost of using those options, particularly for customers opting into installment or autopay arrangements.