State Farm Homeowners Insurance Review
State Farm insures almost a fifth of the nation’s homeowners, so they must be doing some things right. The company stands out for Its outstanding financial strength, helpful online resources, and excellent web interface. On the other hand, State Farm’s options for customizing homeowners policies are scarce, so it may not be the best choice if you are looking for special coverage needs. It also limits discounts for customers in Alaska, New York, North Dakota, Pennsylvania, and South Dakota, so homeowners in those states may see higher premiums.
We’ve done some research on this insurance and how it compares with the best homeowners insurance companies to give you a place to start in your search. Take a look at our State Farm home insurance review to see if it matches your needs.
State Farm Overview
- In business since: 1922
- JD Power Score: 831/1000
- AM Best Financial Strength Rating: A++
- States served: 50
State Farm has a positive reputation with its customers. It has a below-average complaint rating at the National Association of Insurance Commissioners and the complaints, generally, are not related to the home insurance business. As a nationwide carrier, agents are available 24/7 for any emergency you have and if you prefer to do everything online, they offer a great web experience.
Keep on reading our State Farm Home Insurance Review for the ins and outs of its coverage and perks. But remember, when looking for homeowners insurance, it’s always best to compare quotes from several companies to make sure you are getting what you need at the best rate.
|Industry-leading financial strength: State Farm home insurance reviews for financial standing on AM Best showcases this insurance company as a strong one with an A++ grade.|
Local agents across the U.S.: To provide the best experience for its customers, this company has over 19,000 agents nationally.
Informative blog and excellent website: Its intuitive website provides easy to use tools to pay your bills, file a claim, and handle maintenance tasks online while giving useful information.
|Limited discounts: State Farm has limited options to lower your bill through discounts and credits.|
Discounts vary per state: Homeowners in states like Alaska, New York, North Dakota, Pennsylvania, and South Dakota are not eligible for some discounts.
State Farm Home Insurance Highlights
State Farm homeowners insurance offers reliable coverage options at a competitive price. The basic coverage’s cost is about average, but when you start adding extra coverages the price tag can be higher than other competitors. Many factors influence your home insurance cost, like location, surrounding structures or spaces, building materials, and your home’s size. Some of these you may be in control of, such as the presence of working smoke detectors or a fire alarm system. At the same time, others will be out of your control, like building materials and the home’s size. It is better to get and compare quotes for an accurate price and make sure you aren’t paying for something you don’t need.
State Farm’s standard homeowners insurance covers the six main areas that should be included in any policy of this type: 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 in case your home is too damaged to live in it and the personal belongings.
The tricky question is when those coverages actually kick in. For our State Farm Home Insurance review, we analyzed a HO-3 policy, the kind most homeowners have. With this policy, 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, among others. Flooding, earthquake, sinkhole, or other earth movements are not usually covered in a HO-3 policy and you’ll need to add them at an additional cost or purchase a separate policy for that specific coverage. You can learn more about the specifics of homeowners coverage here.
When it comes to customer service, State Farm got 878 out of 1,000 points in the 2020 J.D. Power Property Claims survey, which is only 3 points below the industry average. As for overall customer satisfaction, it ranked near the top in J.D. Power’s home insurance study with 4 out 5 stars.
State Farm homeowners insurance reviews show that while filing a claim may not be the smoothest experience, customers are generally satisfied with State Farm’s policies, prices, and agents. The National Association of Insurance Commissioners (NAIC) Complaints Index supports this as it shows that State Farm had far fewer complaints than the industry average. Therefore, whether you prefer one-on-one help or a robust online platform, State Farm can support you.
Deals, Discounts, and Add-ons
State Farm advertises some of the most common discounts like multi-policy and high deductible. You can also save if you have a fire, smoke, or burglar alarm system in your home. In addition, certain impact-resistant roofing materials qualify for a discount. The only downfall is that not all of its discounts are available in every state.
We evaluated the company based on its customer rating and experience, financial stability, and coverage to create our State Farm Homeowners Insurance Review. To compare this company with home insurance companies across the board, we then calculated a Reviews.com score based on the following:
- Customer Ratings: Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage: As there isn’t one company to fit everyone’s needs, we evaluated companies by the number of coverage options and add-ons available.
- Confidence: It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
- Customer Experience: The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
|Company||Reviews.com Score||AM Best Financial Strength Rating||J.D. Power 2019 Score||NAIC Customer Complaints|
|State Farm||3.75||A++||831/1000||Fewer complaints than average|
|Geico||2.75||A++||N/A||More complaints than average|
|Allstate||4||A+||814/1000||Fewer complaints than average|
|Progressive||3.75||A+||809/1000||Fewer complaints than average|
*All information accurate as of 09/14/2020.
State Farm vs Geico
The biggest difference is that State Farm underwrites its own home insurance policies and Geico partners with other companies to provide its homeowners insurance. This gives State Farm more stability in the pricing structure and consistent services nationwide, although some of their discounts vary per state. While both companies provide coverage for the 50 states, State Farm is a top pick on our best homeowners insurance companies.
As for customer experience, State Farm has a lower rate of complaints than Geico.
State Farm vs. Allstate
State Farm and Allstate go head to head in almost every area we evaluated. They both underwrite their home insurance policies, the coverages are competitive and their services are available through local agents across the nation. State Farm and Allstate also fare well with customer service, receiving fewer complaints than the national average, according to the NAIC. If you prefer to manage your home insurance online, State Farm has an excellent web experience. Meanwhile, if you are looking for customization, you will be better off with Allstate.
The Bottom Line
State Farm is a solid option for customers who enjoy managing their insurance online, from quoting to claims and educational content. But if you rather do some of the process face to face, the company has local agents available throughout the U.S. You can also trust that State Farm has the capacity to pay out claims, since it’s financial ratings are top-notch. However, before choosing a homeowners insurance policy, it’s important to compare a few companies side by side; while State Farm is a great option to include on your list, it’s possible that another company could offer you similar coverage at a more affordable price.
State Farm Home Insurance FAQ
State Farm home insurance offers coverage for condominiums, renters, rental properties, manufactured homes, and farms and ranches. You can often save more money if you bundle multiple policies with the same carrier, but check with a local agent to make sure that bundling discounts are available in your area.
When estimating how much coverage you need, look at replacement cost value. This is the amount needed to completely rebuild or replace your home in the aftermath of a catastrophe. That isn’t going to be the same as what you paid for your home, nor the market value if you were to sell it. You will also want to do a personal possessions inventory to determine the cost to replace them if they are damaged. You can read more in our homeowners insurance FAQ.
Coverage is available in all 50 states and Washington, D.C., and there are over 19,000 local agents nationwide.
State Farm homeowners insurance policies are underwritten by State Farm Fire & Casualty Co.
State Farm homeowners insurance is standard and covers dwelling, other structures like detached garages and fences, liability and medical payments, loss of use, and the personal belongings inside your house. Unless you ask to include add-ons on your policy, damages from water seepage, mold issues, and earthquake are not usually covered.
State Farm offers to protect reparations or replace items of value that aren’t permanently attached to your property. The company also insures personal property, items such as jewelry, collectibles, cameras and home appliances.