State Farm Homeowners Insurance Review
State Farm insures almost a fifth of the nation’s homeowners. 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
State Farm has a positive reputation with its customers. It has a lower-than-average complaint rating at the National Association of Insurance Commissioners (NAIC), which means that a below-industry-average number of complaints are filed for the company’s home insurance product. As a nationwide carrier, agents are available 24/7, and if you prefer to do everything online, the company offers a great web experience.
Our State Farm Home Insurance Review digs into the ins and outs of the carrier’s coverage and perks. But remember, when looking for homeowners insurance, comparing quotes from several companies can help you make sure you are getting the coverage you need at the best rate.
- Industry-leading financial strength: State Farm home insurance received an A++ (Superior) financial strength rating from AM Best — the highest designation possible — which means the company is likely to be able to pay out claims.
- Local agents across the U.S.: To provide the best experience for its customers, State Farm has over 19,000 agents nationally.
- Informative blog and excellent website: State Farm’s intuitive website provides easy-to-use tools to pay your bills, file a claim, and handle maintenance tasks online. There is also a blog which provides useful information to policyholders.
- Limited discounts: State Farm has limited options to lower your bill through discounts and credits.
- Discounts vary per state: Homeowners in some states may not be eligible for all of State Farm’s discounts.
State Farm Home Insurance Highlights
State Farm homeowners insurance offers reliable coverage options at a competitive price. Many factors influence your home insurance cost, like location, 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 could be out of your control, like building materials and the home’s size. Getting multiple quotes and comparing coverage and discounts could help you confirm that you aren’t paying more than you need to be.
State Farm’s standard homeowners insurance covers the six main areas that will likely be included in any policy of this type: your dwelling, which is 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 your personal belongings.
For our State Farm Home Insurance review, we analyzed a HO-3 policy, the most common kind of homeowners insurance. With this policy, your home is 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 for other types of damage. Flooding, earthquake, sinkholes, 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.
Your personal property is covered for the types of damage specifically listed in the policy, so anything not listed will not be covered. However, there are multiple types of home insurance coverage forms, so you may be able to tailor your coverage to your needs.
When it comes to customer service, State Farm got 880 out of 1,000 points in the 2021 J.D. Power Property Claims survey, which is only 3 points below the industry average. As for overall customer satisfaction, State Farm ranked near the top in the 2020 J.D. Power Home Insurance Study with a score of 829 out of 1,000.
State Farm homeowners insurance reviews show that customers are generally satisfied with State Farm’s policies, prices, and agents, although its claims service falls below average for satisfaction. The NAIC complaint index score 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 could be a good choice.
State Farm does not offer many discounts on its home insurance policy. You could save by bundling your home and auto insurance, which might earn you a discount on both policies. You could 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 State Farm’s discounts are available in every state.
|Company||Reviews.com Score||AM Best Financial Strength Rating||2020 J.D. Power Score||NAIC Customer Complaints|
|State Farm||3.75||A++||829/1,000||Fewer complaints than average|
|Geico||2.75||A++||N/A||Fewer complaints than average|
|Allstate||4||A+||829/1,000||More complaints than average|
|Progressive||3.75||A+||797/1,000||More complaints than average|
*All information accurate as of 08/26/2021.
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 its discounts vary per state. Both companies provide coverage in most states; State Farm does not offer new home or auto policies in Massachusetts or Rhode Island. However, State Farm earns the higher Reviews.com score, with a rating a full point higher than Geico’s.
As for customer experience, both companies have lower-than-average complaint index scores with the NAIC, meaning that fewer complaints than average are filed against the companies’ home insurance products.
State Farm vs. Allstate
State Farm and Allstate go head to head in almost every area we evaluated. They both underwrite their own home insurance policies, the coverages are competitive, and their services are available through local agents across the nation. Allstate receives more customer complaints about its home insurance than State Farm, 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 could 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 its financial ratings are top-notch. However, before choosing a homeowners insurance policy, you may want to compare a few companies side by side. While State Farm could be a great option to include on your list, another company could offer you similar coverage at a more affordable price.
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.
State Farm Home Insurance FAQ
State Farm 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, you may first want to 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 might also want to do a personal possessions inventory to determine the cost to replace them if they are damaged.
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 covers dwelling, other structures, liability, 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 earthquakes 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 has options to insure higher-value personal property items, such as jewelry, collectibles, cameras and home appliances.