State Farm home insurance review

Overview

State Farm is the largest and most popular insurer in the country, providing policies for homes and other property types in all 50 states. State Farm is successful in large part because of its extensive network of agents, its industry leading financial strength, and its excellent online resources and digital tools for first-time insureds.

When insuring your home with State Farm, you can expect a few things: relative affordability (compared to other standard home insurers), consistency and reliability. State Farm isn’t going to blow you away with multiple policy tiers and coverage add-ons and discounts like other carriers in the industry, but they excel at what a basic provider of homeowners insurance should. Need to make a change to your policy or file a claim? State Farm has over 18,000 agents—there’s probably five or six in your area alone who can assist you. Concerned about what will happen if you lose your home in a disaster? Don’t be, State Farm has an A++ financial rating with A.M. Best (the best rating an insurer can have) and a AA long-term outlook rating with S&P, so rest assured they’ll have your back if something goes awry.

But if you’re looking for something beyond just standard coverage, State Farm may not be for you. If you have a large customized home and multiple expensive assets to protect, you may want to go with a more specialized or premier insurance company.

State Farm by the numbers

Founded: 1922

Market share: 18%

A.M. Best rating: A++

Better Business Bureau rating: A+

Consumer Reports: 85/100

J.D. Power: 3/5

What states is State Farm available in?

State Farm homeowners insurance is available in all 50 states and the District of Columbia.

Policy details

How much does State Farm cost?

Homeowners insurance costs will vary based on where you live, your home type, how much coverage you need, your credit score, and a number of other factors. But all the same, State Farm offers one of the more competitively-priced basic homeowners insurance policies in the country.

Below is a sample quote for an 1,800-square-foot, single-family home in Westchester, New York with a $2,000 policy deductible. The average annual premium came out to around $1,700, or $140 a month. For comparison’s sake, the average home insurance premium in the U.S. is around $1,200 a year.

Standard coverage

• Dwelling coverage - Protects the structure of your home, floors, countertops, and built-in appliances within the home up to the limit specified in your policy. State Farm also includes a 20% extended dwelling option in your policy that automatically increases your dwelling limit 20% if you exceed your coverage limits in a claim
• Dwelling extension - Also known as other structures coverage, State Farm covers detached structures on your property for up to 10% of your policy’s dwelling coverage
• Personal property coverage - State Farm covers your personal property both inside and outside the home for up to 75% of your policy’s dwelling limit
• Loss-of-use coverage - State Farm will pay for hotel expenses, increased costs from eating out, and travel expenses you incur while your home is being repaired or rebuilt after a disaster. Your coverage limit is up to 20% of your dwelling limit
• Personal liability coverage - Covers legal and medical bills if you’re held liable for accidental injury or personal property damage to others. You have the option of anywhere from $100,000-$500,000 in coverage
• Medical payments coverage - If a guest is injured in your home, this covers their medical expenses regardless of who was at fault. State Farm offers anywhere from $1,000-$5,000 in coverage

Additional coverages

• Back-up of sewer or drain coverage - Protects your stuff in the event your sewage goes in the reverse direction of where it’s supposed to go
• Cyber event, identity restoration, and fraud loss coverage - If your identity is stolen or you’re victim to a cyber attack, this coverage reimburses you for expenses you incur while resolving the issue
• Jewelry, furs, silverware, goldware, and firearms - Option of increasing the sublimits or maximum amount you will be paid out on a claim for the aforementioned items
• Business property coverage - Option to increase business property sublimits
• Building ordinance or law coverage - Pays for any increases in construction costs if you need to move, rebuild or repair your home because of a building ordinance
• Fungus coverage - Up to $20,000 in fungus removal and remediation coverage
• Loss assessment coverage - If you live in an HOA, this pays for any amount you’re assessed for HOA repairs or fees
• Home systems protection - Also known as equipment breakdown coverage, it essentially acts as a home warranty and it covers large appliances like a water heater, home entertainment system and central A/C if they break down
• Energy efficiency upgrade - When your home incurs a loss, this coverage will pay for the increased cost of repairing or replacing sections of your home and appliances with green materials and products
• Service line coverage - Repairs or replaces homeowner-owned water and sewer piping, electrical service lines and data lines that fail or are accidentally broken

Here’s how State Farm stacks up against the competition in terms of the most common coverage endorsement offerings:

Discounts

Here are some (but not all) of the discounts offered by State Farm. Keep in mind that some discounts aren’t available in every state.

• Multiple line discount - If you purchase multiple types of insurance with State Farm, you could be eligible for a sizeable discount
• Home alert protection discount - Reduce your homeowners insurance rates when you install a burglar alarm or fire protection device in your home
• Roofing discount - Save money on premiums if you use impact-resistant roofing materials
• Higher deductible discount - If you increase your deductible an extra $500, $1,000, or $5,000, you’ll see lower insurance premiums with State Farm. However, be sure not to increase it for more than you can afford in the event that something bad happens

Company details

Application process

State Farm’s application process is remarkably fast and can be done mostly online. You simply plug in your ZIP code, indicate when you’d like your policy to start, and then you provide basic information about your home. You’ll be given the option to indicate your home’s replacement cost yourself or use State Farm’s estimation tool that guesses its insured value based on home characteristics. Once you’re done, State Farm provides you with a list of local agents to call and make sure everything on your application is correct so you can finalize your policy. The entire process should take around 10 to 15 minutes.

Claims process

State Farm’s website provides a transparent and complete picture of how their claims process works. They list a few different options for filing claims: by contacting your agent directly, calling State Farm’s claims division, logging into the State Farm website and filing a claim, or by using the State Farm mobile app.

Other types of property insurance offered

State Farm offers several types of property insurance. If you’re looking to buy home insurance and you have other coverage needs, consider bundling insurances.

• Car insurance - Protects your whip
• Rental property insurance - Coverage for rental properties, landlords with rental homes with two or more units, and coverage if you’re renting out your condo
• Personal articles insurance - Insures your expensive bling
• Renters insurance - Protection for stuff in your rental unit (and outside your rental unit)
• Condo insurance - Protects your condo's structure, all your stuff inside, and any additional liability coverage you need to supplement your HOA's master policy
• Flood insurance - State Farm offers flood insurance through the NFIP to protect your home and personal property from flood damage
• Umbrella insurance - Increased liability coverage limits for your home and car
• Business insurance - Insurance for your mom n’ pop shop
• Motorcycle insurance - Insurance for your motorized bike
• Motorhome insurance - Protection for your house on wheels
• Boat insurance - Insures your watercrafts
• Off-road vehicles insurance - Coverage for ATVs, camping trailers, snowmobiles, golf carts, trail bikes, dune buggies, minibikes, you name it
• Farm and ranch insurance - Covers everything from your barn to your livestock to farm-related liability

Digital tools

• State Farm mobile app - You can pay your bill, get information about your policy, file claims, and much more
• Extensive web resources and calculators
• Web application
• Web claims

Contact info

Website: www.statefarm.com
Phone: 1-800-782-8332
Headquarters: Bloomington, IL