State Farm Renters Insurance Review
If you’re in the market for renters insurance, State Farm is one of the best providers. They offer the standard coverages for personal property, liability and loss-of-use. The company also sells add-on policies for enhanced coverage.
State Farm is rated highly for its affordable premiums. In J.D. Power’s 2019 U.S. Renters Insurance Study, the company earned a perfect 5-star rating for price.
However, the company offers fewer discounts than other providers. Because of that, you’ll need to get quotes from multiple providers to determine which company offers the best value.
We also recommend State Farm because of their customer service. Unlike many other insurance companies, State Farm is rated very highly for its customer service. Despite that, the company has poor ratings for its claims handling.
Although no one expects to file an insurance claim, it happens more often than you think, and you want the process to be as easy as possible.
The Renters Insurance Factors We Analyzed
State Farm is well known for offering great customer service—something that can be hard to find in the insurance industry. The company earned a 5-star rating for customer service from J.D. Power, which is considered ‘among the best.’
Their NAIC complaint index is far below average. The only red flag for State Farm’s customer service is their claims handling, which was rated 2 out of 5 stars from J.D. Power.
In terms of customer experience, State Farm offers a number of helpful resources for people who are interested in buying renters insurance. They also have guides for non-insurance related topics, like tips for signing a rental lease. You can also use their rental insurance checklist to make sure you have the necessary information before getting a quote.
With the State Farm mobile app, customers can manage their policy, file a claim, make payments, get virtual ID cards, and more.
State Farm has great financial strength ratings. They have an A++ rating from AM Best, and an AA rating from S&P. When evaluating a renters insurance company, looking at their financial strength is important for a few reasons.
Financially strong insurance companies will be able to reimburse you for any covered claims. A company with poor financial ratings may be less likely to pay you after a loss.
State Farm offers good renters insurance coverage options. Their basic policies include coverage for personal property, liability, medical expenses and loss-of-use.
If you have insurance from State Farm, they will automatically raise your personal property coverage if inflation increases the cost of living.
Their renters insurance policies have coverage limits for things like boats, coins, collections, checks and other valuables.
In addition to the basic coverages, State Farm customers can also choose from a list of add-on coverages for even more protection.
These policies, which come as an added fee, include additional liability coverage, identity restoration, earthquake coverage, additional business property and incidental business liability coverage.
Deals, discounts, and add-ons
According to State Farm’s website, the average monthly premium for $35,000 in renters coverage is $15 per month. But despite their low premiums, the company does not offer many discounts.
The only ways to save more money on your renters insurance through State Farm is to bundle a renters and auto policy, install home safety devices, or raise your deductible. However, many people will be able to claim the smoke detector deduction as part of the home safety discount.
Financial Strength, Availability, and History
State Farm was founded in 1922. Today, the company sells more car and home insurance policies than any other company in the United States. State Farm has very strong financial ratings, and is currently ranked #36 on Fortune 500’s list of the largest companies.
Overall, they have a good reputation among the general public. 50% of people have a positive opinion of the company, compared to 12% of people who have a negative opinion.
- 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
*All information accurate as of April 9, 2020.
The Bottom Line
State Farm is a great renters insurance company across the board. They offer good coverage options and a variety of add-on coverages for even more protection.
We’re also impressed by their exceptional customer service ratings, and their affordable prices. The only negatives to State Farm are the lack of discounts and their poor claims handling reviews.
Based on our research, State Farm would be a good option for nearly any type of renter. However, we recommend it for people who are trying to keep their costs low, and don’t need extensive coverage above and beyond their policy limits. That’s when things start to get pricey, and the lack of discounts could cause your rate to increase significantly.
State Farm FAQ
The average monthly premium for State Farm’s renters insurance is $15 per month, which includes $35,000 in coverage. However, your renters insurance premium is highly individualized based on a number of factors.
State Farm’s basic renters insurance policies include coverage for personal property, liability, medical expenses and loss-of-use. Its renters insurance policies have specific coverage limits for valuables, boats, collections and more.
Yes, you can cancel your State Farm renters insurance policy at any time and with no termination fee. Cancellations are effective immediately, or you schedule your cancellation for a certain date. To cancel, you’ll have to call your agent, submit your request via mail, or speak with an agent in-person.
Most customers can purchase a policy online after getting a quote, so you may be able to get coverage the same day you apply. Working with a live agent could make the process quicker if you need coverage immediately.
State Farm offers renters insurance in all 50 states.