State Farm Homeowners Insurance Review
How We Reviewed State Farm Homeowners Insurance
3 competitors considered
5 features evaluated
6 independent agencies consulted
State Farm Homeowners Insurance Review
State Farm insures almost a fifth of the nation’s homeowners, so it’s clear that the company is doing at least a few things right. Among those wins are State Farm’s outstanding financial strength, its intuitive and helpful online resources, and its extensive network of local agents that make personalized help accessible for customers.
On the other hand, State Farm’s options for customizing its basic homeowners policies are scarce, so it may not be the best choice for homeowners with niche coverage needs. It also limits discounts for customers in Alaska, New York, North Dakota, Pennsylvania, and South Dakota, so folks in those states may see higher rates.
Remember that choosing the best homeowners insurance company is always a matter of comparison. Each home and homeowner is unique, and each insurer has different offerings to fulfill their needs. We’ve done a deep dive into State Farm’s service and coverage to help you determine whether this company should be in the running for you.
|In business since||1922|
|Standout features||Informative online quote tool and resources
Industry-leading financial strength
|A.M. Best financial strength rating||A++|
|Moody's financial strength rating||Aa1|
|S&P Global financial strength rating||AA|
State Farm’s claim to fame is really a hard-and-fast fact: This company is the biggest underwriter of homeowners insurance in the U.S., insuring more than 18% of all the nation’s homeowners combined, according to the National Association of Insurance Commissioners.
Is it true?
The real question here is: Is State Farm’s home insurance the most popular because it’s truly the best?
And of course, the typical insurance-shopping answer applies: That depends on your unique circumstances.
We can tell you that there are obvious perks to working with State Farm. For starters, the company holds some of the highest possible financial ratings in the insurance industry, which means it can absolutely be counted on for its ability to pay claims.
State Farm also fares pretty well when it comes to customer satisfaction. It sits comfortably above average in J.D. Power’s 2018 survey, which polled customers about their experience with insurers’ service, policy offerings, price, and claims. Consumer Reports readers also gave the company high marks for its claims handling, rating the process “very good” from end to end. All of this speaks to State Farm's reliably strong customer experience.
Part of that reliability comes from the fact that State Farm is one of the most accessible insurance companies on the market. With more than 19,000 agents operating in the U.S. — which averages to around 380 per state — it’s easy for customers to find and work with an agent that’s convenient for them.
However, it’s worth noting that State Farm has limited endorsement options. That means it’s not the best if you need specialized protection (like for green buildings or home business owners).
State Farm’s policy options vary by state, too. The types of coverage and discounts available to you will depend on where you live. That means you should compare State Farm with a few other companies in your area — not just to find out which has the best rates, but also to see which offer the coverage options you need and discounts you’ll actually qualify for.
State Farm Homeowners Insurance Pros
✓ Great for convenient online shopping.
✓ Great for basic home insurance coverage.
State Farm Homeowners Insurance Cons
✗ Not the best option for those with homes with specialized needs.
Thorough, accurate online home insurance quotes
We’ve spent many hours exploring home insurance quotes over the years, and State Farm’s online tool holds it down as one of our favorites. The main reason: State Farm’s quote process asks especially thorough questions, which means it’s more likely than others to pin down an accurate price estimate before you ever have to get on the phone with an agent.
For instance, the company will ask about everything from building materials to the percentage of carpeted flooring in your home to the number of corners in its framing. These metrics help narrow down the exact amount it would cost to repair or replace your home after a disaster.
In addition, State Farm has an entire page dedicated to determining the value of your home, which you can reference prior to and during the quote process. Together, these tools help ensure that you’re getting the right amount of coverage — and an accurate quote for that coverage.
Helpful resources for homeowners
One of the highlights of State Farm’s website is its Simple Insights blog. The page hosts helpful articles on all different lines of insurance, as well as general advice about smart financial management.
For homeowners in particular, we found answers to some questions we didn’t even know we had — like what you should consider insurance-wise if you’re throwing a big house party, or how damage from volcanoes can be covered under your homeowners insurance.
State Farm also has a handy home inventory checklist we’d recommend taking a look at. You’ll need to have an inventory of all the items in your home to properly recoup losses if your home is damaged, so it’s a good idea to start building one ASAP after buying your homeowners insurance policy.
Backed by outstanding financial strength
State Farm’s financial strength doesn’t directly correlate to the quality of its home insurance coverage, but it’s still worth mentioning. To give you some background, “financial strength” measures an insurer’s creditworthiness — in other words, the likelihood that it will be able to pay out on any claim at any given point.
State Farm is an industry leader in this regard. Its top-notch ratings from independent agencies A.M. Best, S&P Global, and Moody’s indicate that the company can be counted on to make good on claims of any size at any point — even if a catastrophe means that lots of homeowners in the same area end up filing claims at once.
Lacks specialized coverage
State Farm’s homeowners insurance policies are pretty boilerplate. They include all the standard coverages for your home, other structures, liability, and so on — but options to customize beyond that are minimal. We saw a note about raising coverage limits to meet inflation each year, but little else.
If you need coverage tailored to a unique situation — like a green home, sport vehicles that you keep on the property, or home business coverage, for example — State Farm won’t be your best bet. In those situations, we recommend a company with more robust endorsement options, like Allstate, Nationwide, or Liberty Mutual.
Discounts unavailable in some states
State Farm says directly on its site (well, in the fine print, at least) that “Discount offers [are] not available in Alaska, New York, North Dakota, Pennsylvania, or South Dakota.” While homeowners in these states should still feel free to get a quote, they might see better rates from another insurer with wider-reaching discounts.
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*Progressive and Geico use multiple insurers to underwrite their homeowners insurance. As a result, claims and service ratings vary by state and are not included by J.D. Power or Consumer Reports.
State Farm vs. Progressive
Progressive’s website is quick to tell you that it’s “No. 1 in online home insurance quotes.” State Farm, on the other hand, is a little subtler about pointing out that it’s No. 1 in actually selling homeowners insurance. But does that mean it’s a better choice overall?
Not necessarily. In fact, State Farm and Progressive have pretty similar options for homeowners insurance. Both offer standard HO-3 coverage (the most common type) and a decent range of discounts.
In the end, the choice between the two companies comes down to pricing and the quality of local service. We’d recommend getting a quote from both to see which one can cut you a better rate.
We’d also recommend checking out your local State Farm office and Progressive underwriters to see if one has better customer service. Since a homeowners insurance policy is complicated and requires you to work closely with your agent, this could be a make-or-break.
State Farm vs. Allstate
We mentioned above that State Farm lacks some key policy endorsements, like earthquake coverage and specialized insurance for green homes or new homes. If you’re looking for some of these customizable options, we recommend checking out Allstate instead. It has one of the best coverage lists we’ve seen, including the items listed above as well as coverage for home businesses, identity theft restoration, sports equipment, and more.
If your coverage needs are pretty standard, though, make sure you get a quote from both companies. The one that can offer you a better price for basic homeowners insurance is going to depend on where you live, the construction and value of your home, the discounts you qualify for, and so on.
State Farm vs. Geico
State Farm and Geico offer pretty comparable home insurance policies. They both provide standard HO-3 coverage and a decent range of discounts. Either one is a good option if you’re looking for basic homeowners insurance.
One notable difference, though, is the level of hands-on service you’ll receive with either State Farm or Geico. We mentioned earlier that State Farm maintains a huge network of local agencies across the country — which is great for customers who want to go in, sit face-to-face with an agent, and have their coverage explained in person. Geico, on the other hand, manages most of its business online or over the phone. Most of its agents work in just 17 main offices across the U.S. That means it’s likely not the best choice for folks who prefer IRL interaction, but it could be a good fit for those who favor online shopping anyway.
State Farm Homeowners Insurance FAQ
What does State Farm homeowners insurance cover?
State Farm’s standard homeowners insurance covers the six main areas that should be included on any home insurance policy: your dwelling (meaning the main home), other structures (like detached garages and fences), liability and medical payments (in case someone is injured on your property), “loss of use” (which covers alternate living costs if your home is too damaged to inhabit), and the personal belongings inside your house.
The tricky question is when those coverages actually kick in. With a HO-3 policy (the kind most homeowners have), you’re technically covered in all circumstances except for those that are specifically excluded. So you can tap into your insurance after a tornado, snowstorm, lightning strike, theft, and more — but not if damages are due to flooding, earthquake, sinkhole, or other earth movements. You can learn more about the specifics of homeowners coverage here.
How is State Farm’s home insurance claims process?
State Farm earns a reader score of 82 out of 100 from Consumer Reports, which asks customers to rate their home insurers on the quality of the claims process. A score of 82 means that State Farm was ranked as “very good” across the board, from the speed and politeness of agent responses down to the timeliness and size of payment amounts.
To be fair, a "very good" score does leave State Farm in the middle of the pack compared to other insurers. Big-name companies like Amica, USAA, Nationwide, and Liberty Mutual all ranked higher, and they are a good place to start if you’re looking for comparison quotes. But State Farm’s score, while middling by comparison, is still very strong and no reason to write the company off.
Where can I get a State Farm home insurance quote?
You can get a quote for State Farm home insurance directly on State Farm’s website, or you can head to our homeowners insurance quote comparison tool to begin comparing prices from popular companies in your area.