State Farm Home Insurance Review For 2022

Who Is State Farm?

State Farm has been providing insurance to customers in the U.S. since 1922. Today, it offers over 100 insurance, banking, and investment products. 

The company has over 19,000 independent insurance agents, servicing about 85 million policies and accounts across the U.S.

State Farm offers life, health, and liability insurance, as well as home and property insurance, which is also known as homeowners insurance. 

State Farm also provides insurance for:

• Income property. 

• Renters. 

• Condo owners. 

• Manufactured homes. 

• Farms, ranches. 

• Personal articles. 

• Pets.

State Farm has a large range of insurance products, and has many options that should be considered if you are in the market for home insurance. 

What Are the Pros and Cons of State Farm Home Insurance?

Every insurance company has its advantages and disadvantages. Let’s take a closer look at what these are with State Farm.

Pros

✅ Largest homeowners insurance company in the U.S.

✅ Available across 50 states including Washington D.C.

✅ User-friendly website and app for iPhone and Android.

✅ A++ financial strength rating from AM Best.

✅ Available through more than 19,000 independent insurance agents.

✅ Low number of customer complaints.

Cons

❌ Discounts are limited in some states.

❌ Not available to new clients in Massachusetts, or Rhode Island.

Is State Farm Available in Your State?

State Farm is available in 50 states including Washington D.C. 

How Does State Farm Rank with Leading Credit Rating Agencies?

A rating agency is a company that assesses the financial strength of companies and government entities. 

AM Best is the largest credit rating agency in the world, specializing in the insurance industry. 

Standard and Poor (S&P) is one of the big three credit rating agencies. The big three credit rating agencies also include Moody’s Investors Service and Fitch Ratings.

• AM Best rates State Farm with an A++. This is the highest rating and is based on State Farm’s superior financial performance. 

• Standard and Poor gives State Farm an AA, which is a very high rating. It’s based on State Farm’s' strong claims paying ability.

• Moody’s Investors Service has confirmed State Farm’s financial stability with an Aa1 insurance financial strength (IFS) rating.

• Fitch Ratings has awarded an AA+ rating based on State Farm's stable balance sheet strength, which means that State Farm is a trustworthy company and unlikely to go out of business

What Home Insurance Coverage Is Available Through State Farm Home Insurance?

Each State Farm home insurance policy comes with a standard level of coverage. 

There are also some add-on insurances that you can take out with your standard home insurance policy.

You can decide on which add-ons you would like to include in your home insurance policy through State Farm, but the coverage options below usually come standard:

Dwelling coverage 

Dwelling coverage is an essential part of a home insurance policy. It pays out for repairing or rebuilding the overall structure of your home. 

For example, If your home is burned down by a fire, dwelling coverage will cover you up to the dollar limit of the policy. In other words, the policy will cover you up to the maximum amount your insurer will pay.

Dwelling coverage includes cover for damage as a result of:

• Wind and hail.

• Vandalism.

• Fire, lightning, and smoke.

• Freezing, snow, and ice.

• Volcanic eruption.

Other structures

‘Other structures’ insurance is also known as ‘dwelling extension insurance’ and covers structures that are not attached to your home. 

Similar to dwelling insurance, other structures insurance covers damage from fire, vandalism, wind, hail, and snow.

Other structures insurance covers the following types of structures:

• Fence.

• Detached garage.

• Driveway.

• Shed.

• Gazebo.

• Guesthouse.

Personal property 

Personal property coverage is also known ‘Coverage C’ as it is referred to in many home insurance policies. 

This type of insurance includes the cost to repair or replace personal belongings such as:

• Furniture.

• Clothing.

• Cellphones, tablets, and laptops.

• Crockery and kitchen appliances.

• Jewelry.

• TVs.

Personal property insurance will not cover cars as this is covered separately in State Farm’s auto insurance. 

Loss of use or additional living expenses 

Loss of use insurance, which is also known as ‘additional living expenses insurance’, pays for hotel stays and other costs.

Depending on your policy limits, loss of use insurance can cover your costs until your home is fully repaired.

Loss of use insurance will also pay out if your home isn’t accessible. For example, the police have blocked off your street, there has been a hurricane, or it is not safe to return home.

Loss of use insurance usually covers the following expenses:

• Hotel stays.

• Restaurant meals.

• Apartment or house rentals.

• Groceries.

• Pet boarding.

• Transportation fees.

• Parking fees.

• Laundry expenses.

• Moving and storage costs.

Medical payments

Medical payments insurance helps to pay for minor medical expenses for visitors that accidentally get hurt while being on your property. 

This cover does not include members of your own household. 

It doesn’t matter whose fault the accident is. Medical payments insurance helps cover any small injuries and it may protect you financially in the event that an injured person sues you for medical compensation.

Medical payments coverage includes cover for:

• ER visits.

• Hospital stays.

• Surgeries.

• Physical therapy.

• X-rays.

• Ambulance rides.

• Funeral services.

Home Insurance Add-Ons through State Farm

You can choose to have additional cover added to your home insurance through State Farm. This will help protect you from unforeseen events and most add-on insurance options are affordable.

Here are some of the most common add-ons to home insurance with State Farm:

Water backup coverage

This coverage protects your home and personal property from water damage as a result of sewage or sump pump backups.

Earthquake coverage

This is regarded as essential coverage in some parts of the U.S. and covers you against any losses and damage that earthquakes can cause to your home, belongings, and other structures on your property.

Flood insurance

Flood insurance is not covered by standard home insurance through State Farm. This cover pays you out for any flood damage.

Off-premises structures coverage

This cover allows you to add structures that are not located on your main property and to claim against your policy in the event of any damage to those structures.

Personal injury liability coverage

This insurance helps to pay for any legal costs if someone is injured at your home, and that person sues you. This insurance is different from medical payments coverage, which pays for any medical expenses for a minor injury to anyone visiting your property.

This type of insurance also covers any visitors injured anywhere on your property but not inside your home. \for example, People renting a cottage on their premises, or maintenance workers.

Home systems protection

This helps to pay for the replacement of several types of home systems, including water filtration systems, air conditioning systems, and power generators.

Identity theft coverage

If you have been the victim of identity theft or a cyberattack, this coverage will pay for the legal fees related to reclaiming your financial identity and repairing your credit reports. 

Energy efficient upgrade coverage

This coverage helps you to replace any appliance that has broken, with an energy-efficient version.

Umbrella coverage

This is an extra layer of insurance that protects your assets in a lawsuit. This coverage is very helpful for people who can afford it.

Service lines coverage

This insurance provides financial protection if underground lines that belong to you, need to be repaired or replaced.

Mold coverage

Mold can cause severe health issues. This insurance covers the cost of mold removal in your home.

Insurance Discounts from State Farm

State Farm offers a limited number of insurance discounts. Depending on where you live, you may be able to add these discounts to your insurance policy. 

Speaking to a State Farm insurance representative will help you confirm what discounts you will be eligible for.

Some of these discounts include:

• Multiple product discounts: when you bundle various insurance products such as home insurance, auto insurance, and life insurance, you may be eligible for a discount.

• Protective device discounts: If you install home security systems such as home monitoring and burglar alarms, you may be able to receive a discount. You may also get a discount if you install a fire or smoke alarm.

• Roofing discount: If your roof is made of impact-resistant materials, like hail-resistant shingles, you may be able to get a discount on your home insurance with State Farm.

• Higher deductibles: A deductible is the amount of money that you will need to pay out of your own pocket when you submit an insurance claim. If you opt for a higher deductible and are willing to pay more when it is time to claim, State Farm will lower your insurance premium. 

State Farm Customer Experience 

Signing up for insurance

Becoming a customer of State Farm is very easy. You are able to get a quote right from their website and complete the entire process online. Their quotes are fast and accurate.

All you need to get an online quote from State Farm is your:

• Name and date of birth.

• Location address.

• Coverage start date.

• Email address.

• Number of people living in your home full-time.

• Occupancy information (whether the home is occupied as a primary or secondary residence).

• Any business, including child care conducted on the premises.

Managing and customizing insurance

State Farm makes it very easy to manage your account anytime and from anywhere. Their website and mobile app are intuitive and easy to use.

When you want to change your insurance, or make sure you are getting the best deal possible, you can:

• Call toll-free: 1-855-733-7333.

• Use the Find an Agent tool, which appears at the top right-hand side of their website.

• Access your account online.

Their mobile app is available on the Apple App Store or Google Play Store.

How to file a State Farm home insurance claim

State Farm makes it very easy to lodge a claim and monitor its progress.

You will need to tell State Farm about the reason for your claim. These are some of their insurance claim categories:

• Wind or hail damage.

• Stolen property.

• Water damage.

• Injury.

You will need to file your insurance claim with State Farm using their mobile app, or their website. 

You can also call State Farm’s dedicated insurance claim line at 800-SF-Claim or 800-732-5246.

State Farm will assign your home and property insurance application to a claim handler to manage your request and guide you through the process.

Your insurance claim handler will see to what extent you are covered and will assess the cost of any damages. 

If you are due for a settlement, your claim handler will make sure that you are paid out as soon as possible.

If a payment is due to you, you can specify if you would like a cheque or direct deposit. 

If your claim is approved and you’re required to appoint a contractor, you’ll need to, upon completion of the contract, submit an invoice from the contractor so that they can be paid.

What Have Customers Said about State Farm?

State Farm has generally positive reviews. We’ve looked at three key consumer watch organizations to see how State Farm fared when it came to how customers felt about the service they had received from the insurer.

Consumer Affairs 

This company is one of the leading consumer watch organizations in the U.S. 

Consumer Affairs is a platform where many consumers can detail their experience with a company. All reviews are moderated to confirm their quality and helpfulness.

State Farm has a 3.8 star satisfaction rating for their homeowners insurance. The insurance company also has some excellent 5 star reviews.

For more on homeowner insurance provider ratings, visit Consumer Affairs.

J.D. Power

J.D. Power is a global leader in consumer insights. The company has been providing industry intelligence on customer interactions with brands for over 50 years. 

The world's leading businesses, like State Farm, rely on J.D. Power to guide their customer-facing strategies.

State Farm has achieved above-average scores from J.D. Power for overall customer satisfaction and claims satisfaction. 

State Farm consistently receives fewer customer complaints than its competitors.

With J.D. Power, customer satisfaction is measured out of a score of 1,000 points. State Farm has achieved 842 points, which is above the industry average of 834. 

State Farm Cancellation Policy

State Farm makes it easy for you to cancel your home insurance policy with them if you need to do so. All you need to do is contact your State Farm insurance agent, or cancel via their website or app.

Canceling with your insurance agent

You will need the following when you call your insurance agent to cancel:

• Policy number.

• Name and surname.

• Date of birth.

Changing your insurance agent

If you feel that you are not getting the service that you need from your current agent, you can change your insurance agent very easily. 

You can make the switch online, by email, or by phone.

• Switch your agent online  

• Call: 800-782-8332.

• Email: agentselection@statefarm.com.

Adjusting your premium

Instead of canceling your home insurance policy with State Farm, you can also change how you are covered, which can reduce your premium with them.

You can speak to your insurance agent and ask for a review of your coverage so that they can suggest adjustments. You can also:

• Increase your deductible. Higher deductibles mean lower premiums.

• Choose a payment date that better suits your needs and income.

• Ask for quotes on your other insurance needs, such as car insurance and life cover. When you bundle insurance products, you get great discounts.

• Make smaller monthly payments instead of bigger payments once or twice per year. 

Always make sure that when you change from one insurer to another, you compare the coverage that you are getting. 

Not all insurance companies offer the same level of coverage or the same quality of service.

Homeowners Insurance Companies - How They Compare with State Farm

State Farm and Lemonade home insurance

State Farm and Liberty Mutual home insurance

State Farm and Allstate home insurance

Tips for Buying Homeowners Insurance

Selecting homeowners insurance is a very important task. 

When you’re looking to choose the right insurance provider, you need to carefully consider what you are being covered for. 

If a disaster strikes—even if it is something small like water damage, or something large like a fire—these disasters can be unaffordable to fix without insurance.

Get the right coverage

Although it may be tempting to get the least amount of home insurance cover to save a few dollars, this may not be a good idea. 

Instead of focusing on price, rather focus on coverage and quality.  

Understand your policy

Read your home insurance policy carefully to be absolutely sure of what is and is not covered. 

If there is something in your policy that should be covered but you can’t find it in the wording, contact your insurance agent to double-check.

Periodically review your policy

Make sure that you review your home insurance policy from time to time to make sure that you are getting the best rates. 

Ask your home insurance company for incentives and loyalty discounts if you have been a customer for over a year.

Check your home insurance company’s financial rating

A financial rating is an independent assessment that is usually provided by rating agencies like AM Best and Standard and Poor. 

A good rating means that a company can meet its financial and claim obligations even after a widespread disaster.

Check additional protections

Make sure you understand what additional coverage options are available to you through your home insurance provider. 

For areas where wildfires, flooding, hurricanes, and earthquakes are a risk, you may want to be insured for these natural disasters.

Look for discounts

There are common home insurance discounts that nearly all companies offer, but they aren’t actually standardized across the industry. 

Check for discounts for security systems, water leak sensors, smoke detectors, and so on. 

Also see whether the company will offer discounts for upfront premium payments, no-claims discounts, and multi-policy savings.

Policy Scout’s Verdict on State Farm Home Insurance

State Farm has an extensive reach throughout the U.S. and is available in all 50 states including Washington D.C., which makes it an excellent choice for home insurance.

Insurance coverage is comprehensive and there are many add-ons that help to ensure you are covered should virtually any disaster strike. 

You may also be eligible for various discounts which can reduce your insurance premium significantly.

State Farm has received excellent ratings from AM Best, Standard and Poor, Moody’s, as well as Fitch. This means that they are financially stable and able to pay out claims in the event of a large disaster. 

When it comes to consumer sentiment, State Farm is a popular choice for home insurance. 

We feel that State Farm is a stable insurance provider that is worth investigating to see if their home insurance solutions meet your needs.

Frequently Asked Questions about State Farm Home Insurance

Is State Farm good at paying claims?

State Farm has excellent ratings with leading credit rating agencies. This means that they can pay out many claims in the event of a widespread disaster. State Farm has been reported as being good at paying out valid claims.

Does State Farm have a good reputation?

State Farms homeowners insurance has an overall 3.8 star satisfaction rating with Consumer Affairs. It has also achieved some excellent 5-star reviews.

With J.D. Power, customer satisfaction is measured out of a score of 1,000-points. State Farm has achieved 842 points, which is above the industry average of 834. 

Is State Farm known for denying claims

State Farm is legally required to process both first-party and third-party insurance claims using good faith settlement procedures. 

They are not known for denying claims and are recognized for following good practice when it comes to settling claims.

What does State Farm insurance not cover

State Farm’s standard home insurance cover does not cover damage from a flood or earthquake. You will need additional cover for these risks, depending on the area in which you live. Coverage for a failed septic system or sump pump is not included, but can be added. You would also need additional cover for valuable art, jewelry, or collectibles.

How does State Farm pay homeowners claims?

Once you have filed your homeowners insurance claim and it has been approved, you can choose how you would like to be paid for your claim. You can request a direct deposit from State Farm or a cheque. 

Need Help?

You can reach us at 1-888-912-2132 or send an email to Help@PolicyScout.com. We’re standing by to help you with any questions that you have.