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 some things right. Among them are its outstanding financial strength, helpful online resources, and extensive network of local agents that make personalized help easily 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 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 rates.
We’ve done some research on State Farm and how it compares with other companies to give you a place to start in your search. But remember, it’s always best to compare quotes from several companies when shopping for home insurance; it’s the only way to know which company will offer you the most affordable rate.
- Comprehensive online quote tool
- Industry-leading financial strength
- More than 19,000 local agents across the U.S.
- High customer satisfaction ratings
- Limited discounts in certain states
The Homeowners Insurance Factors We Analyzed
State Farm’s online quote tool asks especially thorough questions, which helps provide a more accurate price estimate, without coverages you don’t need. For instance, it asks 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 a more accurate 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.
Many factors influence the cost of your home insurance. They include things like the location, surrounding structures or spaces, building materials, and size of your home. Some of these you may be in control of (such as the presence of working smoke detectors or a fire alarm system), while others will be out of your control (building materials, size of home, etc.). You can use the tools provided, like the home value tool and home inventory list, to help you get a more accurate price and make sure you aren’t paying for something you don’t need.
When it comes to customer service, State Farm has a fairly strong record. While it does fall below average in the 2019 J.D. Power Property Claims survey, it ranked near the top with a score of four out of five in a separate J.D. Power study measuring satisfaction with homeowners insurance as a whole. This means that while filing a claim with State Farm may not be the smoothest experience, customers are generally satisfied with State Farm’s policies, price, and agents. The National Association of Insurance Commissioners (NAIC) supports this; State Farm had far fewer than the average number of complaints registered with the NAIC in 2018.
With over 19,000 agents in the U.S., finding an agent near you is not a challenge. Whether you prefer one-on-one help or a robust online platform, State Farm can support you.
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.
To determine how much coverage you will need, you’ll have to gather some facts about your house to help determine its value and a detailed list of your belongings. Luckily, State Farm offers online tools to help you with both of these. Once you’ve determined the value of your house and its contents, you can compare policies based on the same dollar amount of coverage.
State Farm’s basic package is comparable to those from competitors like Progressive, Allstate, and Geico, but the benefits vary wildly by carrier. Though State Farm has many agents, you may find better coverage options at Allstate. And if you prefer most of your communication to be electronic, Progressive or Geico might be best for you.
Deals, discounts, and add-ons
State Farm advertises a few of the most common discounts: multi-policy, home alert protection, roofing, 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.
Be sure to consult with an agent before counting on these discounts, as not all of the discounts are available in every state.
State Farm Homeowners Insurance Overview: Financial Strength, Availability, and History
Overall, State Farm has a positive reputation with its customers. It also has an A+ rating from the Better Business Bureau and some of the best financial ratings of any insurance company. As a nationwide carrier, agents are available 24/7 for any emergency you have.
- In business since: 1922
- S&P Global financial strength rating: AA
- Moody’s financial strength rating: Aa1
- AM Best financial strength rating: A++
- States served: 50
All information accurate as of February 3, 2020.
The Bottom Line
State Farm is one of our top picks for the best homeowners insurance companies. We appreciate its helpful website, thorough online quote process, strong financial ratings, and broad customer service network. 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 that list, it’s possible that another company could offer you similar coverage at a more affordable price.
State Farm Homeowners Insurance FAQ
The company offers coverage for condominiums, renters, rental property, 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 determining 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’s standard homeowners insurance covers the dwelling, other structures (like detached garages and fences), liability and medical payments, loss of use, and the personal belongings inside your house. Most policies exclude damages from water seepage and mold issues.