3.7 / 5

State Farm homeowners insurance review

State Farm is a relatively affordable and popular home insurance company with a wide network of agents, experience, and financial strength to show for it.

Pat Howard 1600Haley Sprankle

By

Pat Howard

Pat Howard

Senior Editor & Licensed Home Insurance Expert

Pat Howard is a senior editor and licensed home insurance agent at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

&Haley Sprankle

Haley Sprankle

Reviews Editor

Haley Sprankle is a former reviews editor at Policygenius who specializes in homeowners and auto insurance. Previously, she was a writer at Wirecutter and The New York Times.

Updated|4 min read

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State Farm

OVERALL

3.7

3.7

THE GOOD

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    Great for first-time homebuyers

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    Strong financial ratings

THE BAD

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    Limited discounts

THE BOTTOM LINE

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.

Price

Average annual premium cost for a medium-sized home.

4.8

Financial confidence

Financial ratings from credit rating agencies.

9.5

Third-party ratings

Satisfaction from consumer sentiment institutions and complaints to state insurance boards.

6.5

Policy options

Both the quality and number of coverage options, like unique homeowners insurance product tiers and availability of certain coverage endorsements.

10.0

Customer experience

Ease of use, convenience, availability, and claims ratings.

7.8

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The details

The good

Great for first-time homebuyers. State Farm has multiple resources and calculators for first-time homeowners who are unfamiliar with insurance jargon and the ins and outs of homeowners insurance.

Strong financial ratings. State Farm holds down high ratings with top rating agency S&P as well as an industry-best A++ rating with A.M. Best.

The bad

Limited discounts. State Farm advertises very few discount opportunities compared to  competitors. It doesn't appear to offer several common discounts like savings if you go an extended period without filing a claim or if you live in a new home.

Price

Average annual premium cost for a medium-sized home.

4.8

With State Farm, you can expect to pay around $1,500 for your average annual premium. That’s about 20% higher than the national average premium of $1,249, according to the National Association of Insurance Commissioners. It’s not too much pricier than other carriers, and with the right discounts, you may be able to get the rate that’s right for your needs.

Discounts

A great way to keep your homeowners insurance costs down is to take advantage of discount opportunities. Here are just some 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 sizable 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 so much that you can't afford to pay it in the event of a claim.

Financial confidence

Financial ratings from credit rating agencies.

9.5

Homeowners insurance protects your most important financial assets, so you'll want to be sure you're insuring your home, personal possessions, and other assets with a company that will be able to pay out your claim in the event of a disaster. State Farm has been around for almost a century, and has excellent financial strength ratings with S&P and A.M. Best.

  • Standard & Poor's rating: AA

  • Moody's rating: N/A

  • A.M. Best rating: A++

A.M. Best is the most reliable credit-rating tool to gauge the financial health of an insurance company. A good score with A.M. Best means a company is more likely to fulfill their financial obligation to you when it comes time to file a claim. With a score of A++ (effective January 28, 2022), State Farm has the highest rating a company can receive with A.M. Best.

Moody's measures what the expected losses would be if a company were to go into default. An AAA rating is the highest possible score you can receive from Moody's. Moody’s does not currently have a rating for State Farm.

Standard & Poor's measures companies' creditworthiness and is also valuable in measuring the long-term financial stability of insurance companies. An AAA rating is the highest issuer credit rating assigned by S&P. State Farm has an AA rating with S&P — the third highest rating a company can receive.

Third-party ratings

Satisfaction from consumer sentiment institutions and complaints to state insurance boards.

6.5

It's important to know what experts think about homeowners insurance companies - but it's also good to know what actual customers and consumer sentiment sites are saying, too. All in all, State Farm has pretty good ratings among the leading consumer review websites.

  • Consumer Affairs: 3.6 / 5

  • Consumers Advocate: 4.6 / 5

  • Trustpilot: 1. 6/ 5

  • NAIC complaint index: 0

Consumer Affairs is a platform that lets consumers directly rate insurance companies. State Farm has a score of 3.6 out of 5, which is only down 0.3 points since our last review of the company. With a company this big, that’s a good sign that customers remain happy.

Consumers Advocate rates companies based on stability, reputation, and policy coverage. State Farm has a score of 4.6 out of 5, which is considered “excellent.”

Trustpilot is another website that allows customers to directly rate companies. State Farm has a score of 1.6, but that's based on State Farm as a whole, not just the homeowners insurance.

The National Association of Insurance Commissioners tracks the number of complaints submitted to state insurance departments with their national complaint index. A score of 1 is the baseline average, and a score of 0 means there weren't enough complaints to count. State Farm's score of 0 means they received fewer complaints than the average company.

Policy options

Both the quality and number of coverage options, like unique homeowners insurance product tiers and availability of certain coverage endorsements.

10.0

State Farm offers three customizable tiers of coverage — Essential, Expanded, and Premium packages. Each tier offers coverage found in  a standard HO-3 policy, as well as a few additional coverages like extended dwelling and jewelry protection. 

Here’s how each tier breaks down specifically.

Essential coverage

The Essential coverage package comes with a 2% deductible and the following protections:

  • Dwelling coverage. Protects the structure of your home, floors, countertops, and built-in appliances up to the limit specified in your policy. 

  • Extended dwelling coverage. State Farm offers up to 20% for extended dwelling coverage, in the case that your home repair or rebuild exceeds its coverage limits.

  • Other structures. State Farm covers detached structures on your property, such as sheds or a detached garage.

  • Personal property coverage. If your personal belongings are damaged during a covered incident, this pays for the repair and replacement of them. Coverage limits are capped at75% of your dwelling coverage.

  • 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 to $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 to $5,000 in coverage.

  • Jewelry and furs. If your jewelry or furs are damaged during a coveraged incident or stolen, you have up to $2,500 to repair or replace them.

  • Silverware and goldware. Similarly, if your silverware and goldware are stolen, you have $2,500 to replace them.

  • Firearms. In the event your firearms are stolen, you would also have $2,500 to replace them.

Expanded coverage

Along with everything included in the Essential tier, you’ll have a reduced 1 % deductible, plus:

  • Water backup coverage. If your sewer or water lines break and/or overflow, this coverage would help cover the repairs to the lines themselves and the damage caused. 

Premium coverage

Along with everything included in the Expanded coverage tier, you’ll also have a reduced 0.5% deductible, plus:

  • 10% in water backup coverage

  • $5,000 each for jewelry and furs coverage, silver and goldware coverage, and firearms coverage

  • $1,000,000 in personal liability coverage

  • 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.

  • Equipment breakdown coverage. If your appliances are damaged or break down, this coverage helps pay to have them repaired or replaced.

  • Service line coverage.  Helps cover the costs to repair and replace power and other service lines around your home that are  damaged or broken.

Note: The information above represents potential policy options and may not be available for every applicant. Speak to a licensed expert for a personalized look at your coverage options.

Customer experience

Ease of use, convenience, availability, and claims ratings.

7.8

State Farm coverage is available everywhere in the country. The company website has impressive resources and digital tools for homeowners, including new contact tools for hearing- and speech-impaired customers.

State availability

State Farm homeowners insurance is available in all 50 states and Washington, D.C.

Digital tools

  • Online quote tool and application 

  • Online and mobile bill pay

  • Online and mobile claims filing

  • FAQ and blog resources

  • Mobile app

  • Electronic policy delivery

  • Hearing- and speech-impaired services

Ease of claims

State Farm earns a spot on our Best Homeowners Insurance Companies list thanks to its easy claims filing process. You have several options for filing claims, including: by contacting your agent directly, calling State Farm’s claims division, logging into the State Farm website, or using the State Farm mobile app. If you’re impacted by a  a catastrophic event, State Farm also has specific catastrophe protocols and resources available to help.

Payment methods

  • Mobile app payments

  • In person payments

  • Phone payments

  • Mail payments

Policygenius offers insurance policies from many of the nation's top insurers, who pay us a commission for our services. However, all editorial choices are made independently.