State Farm offers affordable homeowners insurance that is widely available and ranks well in our customer survey. While new policies aren’t available in California, Rhode Island, or Massachusetts, they are available in the rest of the country.
State Farm ranked second among all carriers in our rating for affordability, with an average monthly premium of $170.89. While the rates are low for companies in our rating, it also offers a few discount opportunities for bundling multiple policies, having protective devices such as a security system or smoke alarm, and remaining claim-free.
State Farm offers a wide range of homeowners insurance coverage, including coverage for your dwelling, accessory structures, personal property, and medical payments for guests and other non-household members who might be injured on your property.
State Farm also allows you to customize your insurance by adding additional coverages, including Identity Restoration coverage (IDR), inflation guard, scheduled personal property, service line, and water backup. There are also options to increase coverage for your dwelling, personal liability, and business property. For a complete list of coverage options, speak with your agent.
You can get a quote online, but to purchase a policy you will need to work with a local agent.
State Farm’s Claims Handling:
With regard to claims handling, State Farm scores 4.2 out of 5, the average score for the sub-rating. Eighty-six percent of the State Farm customers who had filed a claim that responded to our survey reported being satisfied or completely satisfied with how State Farm resolved it.
State Farm’s Customer Service:
The company scores 4.4 out of 5 in this sub-rating, with the average company score being 4.1. Approximately 32% of those in our survey indicated they were satisfied with the customer service provided while another 51% said they were completely satisfied.
State Farm’s Customer Loyalty:
Most existing State Farm customers considered themselves loyal to the carrier, with almost 88% of existing customers likely or very likely to renew their policy. However, a slightly lower amount said they would recommend State Farm to someone looking for homeowners insurance. This placed State Farm in the middle of our customer loyalty rankings, with an aggregate score of 4.2
State Farm’s Value:
State Farm’s average standard monthly rate of $170.89 ranked it second among companies surveyed. However, when customers were asked to compare the overall value, the company earned an aggregate score of 4.2, matching our overall average score among all carriers in our rating. Almost 78% of those in a survey stated they were satisfied or completely satisfied with the value they received from their State Farm home insurance policies.
I’ve had no issues with State Farm as an insurance provider. I found the process of getting a quote and working with a local agent straightforward and simple. I opted to correspond by phone and found it to be just as convenient and quick as it would be trying to get answers via email. I just purchased a home, and in the process, I could bundle it with my auto insurance at a much better rate. State Farm was very responsive to mortgage underwriting and confirming coverage.
State Farm offers optional replacement cost coverage for your home, other structures, and personal property, which replaces damaged items at today’s market value and does not factor in depreciation. Without this endorsement, replacement is calculated on an actual cash value basis with deduction for depreciation.
State Farm also partners with Wildfire Defense Systems to provide free services to policyholders in some states. This includes sending contractors out to homes in danger zones for preventative analysis to help reduce the chance of wildfire damage.
State Farm offers a number of options to customize your policy including:
Ordinance or law: Provides coverage for repairing or rebuilding your home after a covered claim to meet today’s building codes.
Inflation guard: Increases the dwelling coverage automatically each year to account for rises in construction costs.
Cyber Event, Identity Restoration, and Fraud Loss coverage (CEIDR): Reimburses up to $50,000 in expenses for restoration and provides a case-management service if you are the victim of cyber attack and extortion crimes, fraud, or identity theft. This coverage can be added to home insurance policies in all states except North Carolina.
Identity Restoration coverage (IDR): Provides case management services and expense reimbursement for identity theft but does not cover cyber or fraud losses. This coverage is available for policyholders in North Carolina.
Valuable possessions: Insure valuable items like jewelry and fine arts for their appraised value, and have coverage for them everywhere in the world.
Optional homeowners insurance coverages and endorsements can vary by state. Contact a State Farm agent to find out which are available in your state.
State Farm does not include damage from a flood or earthquake with its standard homeowners insurance coverage. Both require additional coverage; however, research your area’s risk level to determine if these coverages are needed.
Similarly, coverage for a failed septic system or sump pump is not included but can be added. Valuable art, jewelry, or collectibles may also require additional coverage, which State Farm provides through its valuable possessions endorsement.
Based on our research, the average monthly cost for State Farm homeowners insurance is $170.89. That ranked it second among the carriers in our survey, behind Amica. The cost of homeowners insurance varies based on a number of factors, such as your age, marital status, credit score, location, and details about your home. We priced out the average cost of homeowners insurance based on a 47-year-old married individual with $300,000 in coverage on a home, $100,000 in liability, and basic home safety equipment.
When we increased the dwelling and liability coverage limits to $500,000 and $300,000, respectively the cost rose to $234 per month.
The price you pay will depend on several factors including the size of your home, its location, and the amount of coverage you purchase, among other things.
State Farm offers a handful of discounts on its homeowners insurance policies, which include:
Multi-policy: If you insure your home and auto with State Farm, you will receive a bundling discount on both policies.
Home security: Home monitoring systems such as fire, smoke, and security alarms may earn you a discount.
Roofing: Installing an impact-resistant roof, such as hail-resistant shingles or class 4 shingles, on your home may qualify you for a discount. Contact State Farm for more information before the installation takes place.
Automatic sprinkler: You may be eligible for a discount if your home has qualifying automatic indoor fire sprinklers.
Claim-free: This discount applies if you have gone several years without filing a homeowners claim.
Utilities rating plan: Check with your State Farm agent to find out if you qualify for a discount after updating your home’s utilities.
Wind Mitigation: In some states, if your residence meets certain building construction standards, such as Institute of Business and Home Safety designations or Florida Building Codes, you may be eligible for a discount.
Available discounts vary by state. Discuss your options with your local State Farm agent.
You can file a homeowners insurance claim online, through the mobile app, or by calling State Farm or your local agent. Contact State Farm as soon as possible and do the following:
Report any claim that involves a crime, such as theft or vandalism, to the police.
Document the incident and any related damage with photos and/or video.
Repair any damage that could further harm your home – such as broken windows or leaking pipes – and keep receipts for all work.
After contacting State Farm, they will review your claim and may follow up with you for further details.
Track your claim’s status online, in the app, or by contacting your agent.
Key Takeaways
State Farm has one of the lowest average monthly premium mounts for our sample archetype.
Coverage is available in all 47 states and Washington, D.C.
The company has average to above-average ratings in our subratings.
Most existing customers plan to renew their State Farm policy, according to our survey.
State Farm offers several property insurance products, including home, renters, condo, rental property, manufactured home, farm, ranch, and personal articles. Additionally, it also has life, health, disability, and liability insurance products available with customizable options for each category. In 2020, State Farm partnered with Trupanion to offer pet insurance policies.
