Our verdict: State Farm is a financially sound company that can provide multiple forms of insurance policies to help you secure your family and property. Although its discount options could improve, it’s worth considering.
State Farm is known for its approachability and friendliness with customers. It’s no wonder their services have high satisfaction ratings. Ever since 1922 — when its founder sold his first car insurance policy — State Farm has been helping people manage risks and recover from unexpected adverse events.
Today, the company is an active community member and an environmentally sustainable organization. State Farm home insurance is among the best options on the market due to the diverse choice of policies, nationwide availability, and excellent online tools.
Keep on reading to learn more about State Farm and how it compares to other insurance providers in 2021. This review will present you with all the info you need to decide whether it’s a suitable choice for you.
State Farm Home Insurance Pros and Cons
No insurer is perfect, and there are several things to consider about State Farm.
Pros
- Higher-than-average customer satisfaction rating
- Financial stability
- Wide range of insurance options
- Agents available nationwide
- Home insurance in some states includes flood or earthquake
- Excellent online quoting tool
- Home protection devices discount
- Roofing discount
- Serves all 50 states
Cons
- High prices
- Limited choice of deductibles
- Unavailable online quoting system for mobile or motor homes
State Farm Homeowners Insurance Product Overview
Even though some reviews claim that State Farm’s official website is easy to use, we had trouble finding the exact list of policy coverages. The only thing State Farm explicitly points out is jewelry, home, and garden protection. Yet, there’s nothing else specified for the property insurance.
Based on State Farm’s reviews, the basic home insurance covers replacement value, dwelling, personal property, other structures, guest medical payments, and liability protection.
Additional coverage options include expanded replacement cost, inflation protection, water backup, scheduled personal property, equipment breakdown, loss of use, ID theft, and energy efficiency upgrades.
Features
State Farm home insurance is available for different types of homes and needs.
Homeowners Insurance
Homeowners insurance can help get you back on your feet after unexpected accidents. With State Farm, you’ll enjoy a home policy that covers:
- The physical dwelling structure
- Other structures like a detached garage
- Personal property and the contents of your home
- Loss of use and additional living expenses
- Personal liability
- Medical payments
There are also add-ons available:
- Coverage for sewers and drains
- Limited State Farm mold coverage
- Earthquake coverage
- ID theft and cyber-attack protection
- Liability coverage for those who provide in-home child or adult care
- Liability coverage for personal injury claims
- Coverage for theft or vandalism
- Coverage options for when a new home is under construction
Your eligibility for certain coverages will depend on the state of your home, upgrades, and other factors.
Condo Unitowners
The company’s website provides all the information on what is covered by this State Farm property insurance. If your condo association’s insurance is focused on protecting the common areas, getting personal property coverage is a wise decision.
Condo insurance covers weather-related damage like lighting strikes, freezing of the plumbing system, and anything caused by the weight of ice. It also features non-weather dangers, such as fire, theft, vandalism, smoke, etc.
The condo insurance doesn’t cover damage from natural disasters — flood, settling, or mudslides — and professional services or vehicles. You can purchase all of that as additional policies.
Rental Property
If you own additional property, State Farm’s Second Home insurance is a perfect way to keep it secure. It’s suitable for rental homes, condo units, and apartments, and it covers:
- Accidental and direct physical loss to the dwelling and property
- Loss of rents in case of damage
- Liability
The examples of losses that are not covered include but aren’t limited to damage caused by:
- Continuous water leakage
- Earth movements
- Settling or deterioration
- Birds, rodents, and similar
State Farm vacant home insurance for landlords is a comprehensive customized solution that protects your property and assets. It’s designed specifically for apartment owners and includes:
- Building property
- General liability
- Equipment breakdown
- Tenant move back expenses
- Heating or air conditioning loss
You’ll also have different additional coverage options, so it’s best to consult with your agent to see what offer you can get.
Manufactured Home
State Farm manufactured home insurance covers accidental and direct physical loss and named perils. It further includes dwelling and other structures repairs and replacements, personal property, and loss of use. If you live in a mobile home, this type of insurance might be worth considering.
The Fair Rental Value coverage helps with the lost income when your home is held from renting. It further has additional living expense coverage that pays the necessary increase in costs due to home repairs. There’s also a liability and medical payments coverage included.
Even though this coverage is broad, you won’t receive State Farm reimbursement for damage caused by:
- Water seepage
- Flood
- Wet or dry rot
- Settling, deterioration, or nuclear hazard
- Birds or rodents
- Personal services
Ranch and Farm Insurance
If you own or rent a farm or a ranch, State Farm has the right insurance for you. This policy can be customized precisely to your needs. It protects personal property, such as clothes, furniture, and appliances, as well as farm machinery, livestock, grain, and tools.
Flood Insurance Coverage
State Farm offers homeowners insurance for water damage if your area is part of the National Flood Insurance Program. It requires 30 days to become effective.
As floods occur everywhere in the US, and this insurance takes a while to activate, it’s wise to reach out to an agent and discuss it as an option as soon as possible.
Backyard Structures and Home Insurance
You can include a freestanding garage, pool, or shed in your home insurance policy. However, this coverage varies with every provider. State Farm homeowners insurance may feature a fence as an additional safety measure.
If you own a pool, you should add non-slip surfaces around it to reduce the risk of liability exposure.
Financial Strength
Based on the 2020 State Farm report, the company saw growth in multiple business sectors. Its life insurance companies paid out almost $600 million in dividends to policyholders. The State Farm P-C group of companies earned a premium of $65.1 billion.
As for State Farm home insurance ratings, J.D. Power gave it a score of 829/1,000, placing it seventh in its 2020 National Study. The industry average is 872, so State Farm is performing below the expectations.
On the other side, A.M. Best ranks it with A++, the highest possible rank, and S&P gave it an A. Based on this data, State Farm is a financially strong company, so you won’t have to worry about your claims.
Customer Service
State Farm home insurance customer satisfaction ratings are mixed. Some complaints are due to denied claims, but the predominant customer service reviews are positive. State Farm usually meets expectations, has decent customer support agents, and effectively assists policyholders with their issues.
State Farm’s website has “Help” and “Find an Agent” sections, where you can get more information about the policies and terms and conditions. It also has separate phone lines for the different services and general inquiries.
- Consumer Affairs — 4
- Clearsurance — 4.1
- NerdWallet — 5
- Wallethub — 3.8
- Valuepenguin — 70%
Insurance Cost
Many factors affect the State Farm house insurance quote, and that’s why only an agent can give you a 100% reliable figure.
You can get a personalized quote via the handy online tool. Use your current policy for coverage and deductible references. Know that the quote you receive isn’t legally binding if you don’t sign any papers.
The average prices you see online are for the basic coverage. The more policies you add, the higher your premium would get. Compared to its competitors, State Farm has among the lowest annual fees of about $1,596.
State Farm Home Insurance Discounts
Even though it appears State Farm has fewer discounts than its competition, we found several ways to save, depending on your policies and needs.
Multiple Line
This bundle discount would be effective if you purchase multiple insurance policies with State Farm. For example, you can save over $960 annually by combining auto and home insurance policies. The other combinations include:
- Condo and auto
- Renters and auto
- Life and auto
- Multiple auto insurances
Home Security
You can lower your State Farm home insurance quote by adding monitoring systems to protect you from fire or theft.
Roofing
Particular roofing materials could also get you a discount with State Farm. This option is only available in some states, and you’ll need to fill out a form to check whether you’re eligible.
Higher Deductibles
Paying higher deductibles will lower your monthly premiums.
Other Discounts
There are other deals for customized home policies, such as a model yard or tenure discount. You’ll find them in the dedicated section on the website or by talking to your agent.
State Farm Home Insurance Quote Comparison
Let’s see how State Farm’s rates compare to other insurance companies.
State Farm vs. Liberty Mutual
State Farm has a higher A.M. Best rating than Liberty Mutual. It sells its policies through local agents, and its services are available in all 50 states.
On the other hand, Liberty Mutual sells its policies online and nationwide and has more affordable premiums. Both companies offer standard and specialized services, a variety of optional coverages, and generous discounts.
The final Liberty Mutual and State Farm home insurance rates depend on your location, the state of your home, credit score, and other factors.
State Farm vs. USAA
USAA offers its insurance services in all states but only to active or former military personnel. Its home insurance annual premiums vary between $1,077 and $1,643.
USAA is known for being a reliable and financially stable provider. It has high satisfaction ratings and offers a great variety of policies.
Both State Farm and USAA offer discounts to help you save on your insurance policies.
Overall Competition Comparison
We’ll compare State Farm’s competitors in terms of financial strength, customer satisfaction ratings, and other benefits.
State Farm vs. GEICO Home Insurance
State Farm has excellent ratings for its customer support, and A.M. Best gave it the highest score of A++. The company offers other financial products, like banking or investing options, besides insurance.
With GEICO, your insurance policies come from third parties. That’s why you won’t know which provider you’ll work with until you get a quote.
GEICO is famous for its auto insurance, and if you already have a policy, you might be eligible for a discount for your home insurance. It has superior financial strength rankings by A.M. Best and S&P.
Allstate vs. State Farm Home Insurance
Allstate offers competitive rates, various insurance policies, a great mobile app, and many discounts. With these and its nationwide availability, it’s no wonder it is the second-largest insurer in the US.
A.M. Best ranks it with A+ for its financial strength and customer satisfaction. For customer experience, J.D. Power gave it an 858/1,000 score, and S&P’s rating for financial stability is AA-.
Both companies are financially sound, have high ratings for customer support, and their policyholders are generally satisfied.
State Farm vs. Farmers Home Insurance
Farmers was founded in 1928, and today it serves over ten million households with 19 million policies across all US states. It is the fifth-largest home insurer in the country, providing an array of financial products and insurance policies with great discounts.
Depending on the type of policy and your location, Farmers might give you higher rates than other companies. It has an excellent rank in J.D. Power’s survey, but the customer reviews are mixed.
Farmers also has a user-friendly website on which you’ll find all the information you need. Compared to State Farm, it provides more diversified insurance policies.
Expert Thoughts
State Farm home insurance is a good choice for securing your property. The company is financially stable based on impartial third-party ratings, so you won’t have to worry about your claims.
Besides the standard insurance coverage, you’ll have many options to secure yourself, your family, and your belongings. State Farm offers substantial discounts, although customers find the choice lacking.
While its online quoting tool is helpful, the information about the coverages is not easy to find on the website. Price-wise, State Farm is usually below the national average and can be cheaper than its competitors, depending on your location and home condition.
People Also Ask
Insurance is among the most important investments you can make to secure your property, family, and belongings. There are many well-established providers on the market that offer basic and comprehensive coverage for your home.
If you decide to go with State Farm, besides the essential coverage for the dwelling, repairments, replacements, other damage, or outbuildings, it may provide additional insurance for jewelry or collectibles. There are also specialized policies for condo owners and renters.
State Farm is a well-established US insurance company that also provides various banking and investment products. A.M. Best ranks it with A++ for financial strength, meaning you’ll be able to claim your insurance without issues.
State Farm has a low number of customer complaints and above-average customer satisfaction levels. You’ll enjoy various policies, with numerous coverage options personalized for your needs. There are also additional options like health, life, liability, or disability insurance.
The cost of homeowners insurance depends on many factors. They can be upgraded bathrooms and kitchens, additional rooms, customized windows, any unique features of your home, or location.
Compared to its competitors, State Farm has the lowest rates on the market at the moment. Its average annual premium is $1,596, which is less than the national average of $1,630. However, you need to consult with your State Farm agent to get a precise offer.
You can use its user-friendly online tool on the official website to get a quote. The offers you receive would be available for all states. After checking out the policies, you can reach out to State Farm agents to further discuss your options.
State Farm homeowners insurance is affordable, with lower prices than the national average and its competitors’. You might be eligible for discounts as well, which can help you reduce the premium further.
State Farm helps you get quotes in two ways. You can use its online tool or talk to an agent. The policies and offers might be available in all states but are subject to change since they depend on your location and other factors.
The average annual State Farm premium is $1,596, which translates to about $130 monthly. Talk to a State Farm agent to learn more and find out how much you’ll pay for State Farm home insurance.
