State Farm Renters Insurance Overview
| Easy-to-use online features|
Unique add-ons and customizable policies
|Poor claims service|
State Farm touts itself as being “like a good neighbor” with reputable and customer-centric insurance agents nearby to help you manage the “risks of everyday life.” Its renters insurance policies seem to make good on that promise, offering industry-leading customer satisfaction and competitive quotes despite having a reputation of less-than-average claims service. If you’re looking for renters insurance that covers the basics and offers policy add-ons to sweeten the pot, State Farm may be a winner.
The Renters Insurance Factors We Analyzed
Factors that go into an overall State Farm renters insurance customer experience score include consumer-submitted ratings for claim settlement fairness, the initial claims reporting process, and the estimation and repairs process, among others. According to a 2019 Property Claims Satisfaction Study issued by J.D. Power, customers deemed State Farm’s performance in these categories as average nearly across the board. State Farm received scores of three-out-of-five for claim servicing, estimation, repair processes, and settlements, while also receiving a below-average mark for its initial handling of claims. This resulted in an overall customer satisfaction score of three-out-of-five, placing State Farm toward the bottom of a 23-member field of renters insurance providers.
Apart from its J.D. Power review, we also looked at State Farm’s customer complaints, and website and app ease of use. In about 5-10 minutes, customers can answer a few simple questions to obtain a renters insurance quote using State Farm’s online quote tool. Along those same lines, State Farm’s app allows policyholders to manage insurance accounts and file new claims with nothing more than a few easy screen taps. To top it all off, out of 426 policyholder complaints filed in 2018, less than 3% of these complaints were from renters insurance policyholders. With all that in mind, it seems fair to give State Farm a bit of a customer experience bump for renters insurance, which is why we settled on a score of 3.8 out of 5.
J.D. Power recently assessed 14 different renters insurance providers on the basis of a number of different factors, such as price, interactions with insurance agents and call center reps, the billing process and policy offerings, among others. Based on this assessment, State Farm received a perfect score in nearly every category, with the exception of claims experiences, where it scored a two-out-of five rating. Despite that, State Farm was able to retain a perfect score in overall satisfaction, making it a solid option for renters insurance.
Like many insurance providers, State Farm renters insurance policies cover the basics for policyholders. One way this coverage comes in handy is in covering personal property, such as electronics that are damaged as a result of accidents, weather, or vandalism. These policies also extend liability coverage in cases of bodily injury or property damage and may cover legal defense fees and medical expenses. Finally, policyholders can rest assured knowing their living expenses are covered up to 24 months if their home is damaged beyond use from a covered claim.
Deals, Discounts, and Add-ons
State Farm offers a few add-ons that could be particularly useful to users under certain circumstances. In addition to coverage add-ons for homes and businesses and identity restoration insurance for cases of identity theft, State Farm also offers optional protection against earthquakes. If your residence is damaged beyond use and requires time-consuming repairs, or if some of your personal belongings are damaged in an earthquake, State Farm’s supplemental earthquake insurance will cover your losses.
State Farm also provides optional medical insurance to cover any accidents, injuries or illnesses that your pets may suffer. With this add-on, users simply pay a small monthly premium and are reimbursed for 90% of their pet’s medical bills, minus their deductible. Apart from illnesses and injuries, this coverage includes diagnostic tests, surgeries, medications, and much more.
Financial Strength, Availability, and History
Founded in 1922, State Farm insures nearly 83 million policies and accounts. The renters insurance wing of the Bloomington, Indiana-based coverage provider is among the elite in the sector, having received a perfect 5.0/5.0 score from J.D. Power for overall customer satisfaction as well as an ‘A+’ rating from the Better Business Bureau.
Though these accolades are certainly reasons for prospective customers to get excited, users should exercise caution with State Farm. Within the past three years, State Farm has closed nearly 1,400 Better Business Bureau complaints, 458 of which were filed in the past 12 months. Though this news may be slightly disconcerting, customers can take heart in the fact that State Farm has knowledgeable agents in all 50 states who are more than capable of resolving any concerns you may have.
- In business since: 1922
- S&P Financial Strength Rating: AA
- Moody’s Financial Strength Rating: N/A
- A.M. Best Financial Strength Rating: A++
- States served (availability): 50 & D.C.
The Bottom Line
State Farm’s coverage is a solid option for any renter looking to protect their personal belongings and defend against potential liability charges. Its customer satisfaction scores are among the best in the industry, and have received very few complaints. State Farm’s financial stability is sound. If you’re looking for a great claims experience, you may want to keep looking, as State Farm received below-average marks in that regard, but if you can overlook that rating, State Farm’s coverage, add-ons, and easy-to-use features are a great all-around package.
State Farm FAQ
How much does renters insurance cost from State Farm?
Taking all providers into account, the average renters insurance policy costs $12 per month. Bear in mind though that a number of factors affect the cost of your premiums. These include the deductible you choose to pay (the higher your deductible, the lower your premiums and vice versa), the kind of insurance coverage you need, and the items that you decide to cover.
What is typically covered under State Farm renters insurance?
State Farm renters insurance is made up of three primary components: personal property, liability, and loss of use. Personal property coverage protects you from losses when your valuables are damaged as a result of accidents, weather, or theft. Liability insurance covers you in the event that you are found to be at fault for causing bodily injury or property damage to another party. Finally, loss of use coverage protects you when your home is uninhabitable for an extended period of time due to an insured loss. It covers living expenses for the shortest time needed to repair your place.
Can you cancel State Farm renters insurance?
Yes. You can cancel your State Farm renters insurance policy at any time. To do this, you can either reach out to an agent by phone, by mail, or in person.