State Farm Home Insurance Review 2020

Last modified: November 22, 2020
  • Claims 10
  • Buying 7
  • Transparency 9
  • Coverage Variety 10
  • Value For Money 8
  • OVERALL RATING 8.8
  • Financial Strength A++
  • BBB Rating A+
  • Coverages 5/5
  • Flexibility Policy customization possible
  • Discounts 5/5
  • Support Phone ,Online, mobile app
  • Availability All states
  • Pricing Expensive
  • User Ratings ConsumerAffairs 3.9

About the Company

State Farm is a group of insurance companies with offices throughout the United States. Founded by George J. Mecherle in 1922, the mutual owned insurance company caters to all the states in the country. The home insurance provider has their own exclusive home insurance agents. 

Apart from selling home insurance, they are one of the largest providers of auto insurance. They also sell life, disability, and health insurance.  

You can decide if they are the right home insurance company based on State Farm home insurance reviews

How We Reviewed 

Our State Farm home insurance review investigates different types of coverage options. We reviewed all their discounts and compared them against other home insurance providers. 

We also examined the State Farm insurance rating to determine the home insurance provider’s financial strength rating and customer satisfaction. We reviewed how easy it was for customers to file a claim through the website and mobile app. 

The pricing structure also played a vital role in deciding if the home insurance provider had affordable or expensive coverage options. 

Where Is It Available?

State Farm’s main headquarters are located in Bloomington, Illinois. It is the largest and most popular insurer in the United States and provides coverage options for homes and other property types in all 50 states. 

Home Insurance Coverage Options

State Farm offers 4 policy forms. They include the broad form policy, the special form policy, the comprehensive form, and the modified form coverage. 

Here are the standard home insurance coverage options:

  1. Flood Insurance – This State Farm insurance covers minor water damage from a burst pipe. If an external source causes your home to flood, you need to get a separate policy for it. If you live in a flood zone, you may need to take a separate coverage as well. 
  2. Earthquake Coverage – State Farm will not cover you under the standard home insurance. If there’s damage due to an earthquake, you need to get the separate specialized coverage offered by the home insurance provider.
  3. Full Replacement Cost Coverage – It pays the actual cost required to reconstruct your property at existing prices, which may be more than your home’s value. This depends on your home’s age, location, material cost, and local labor cost.
  4. Energy Efficiency Upgrade Coverage – It replaces damaged or destroyed appliances, water heaters, or other types of energy-efficient equipment.  
  5. Umbrella Coverage– It supplements your liability coverage when the expenses of a covered loss exceed the standard home insurance policy.  
  6. Sump Pump Overflow and Water Backup Coverage – It covers water damage caused by a drain backup or a malfunctioning sump pump. You will need to buy it separately as it is not part of the standard home insurance coverage. 
  7. Personal Injury Liability Coverage – Additional personal injury liability coverage protects you against lawsuits if a person gets injured on your property. 
  8. Fraud Loss, Identity Restoration, and Cyber Insurance Coverage – It offers you up to $50,000 to reimburse you for lost income and pay legal fees due to identity theft or fraud and can pay up to $15,000 in damages caused by a cyberattack.
  9. Home Systems Protection Coverage – It covers repairs and replacements of equipment that malfunctions such as your heating and cooling system, water filtration system, or power generator. 
  10. Off-premises Structures Coverage – It offers you coverage for your other property that is located off-premises.
  11. Adult Day Care Coverage – If you have hired adult day care providers in your property, this coverage will pay for it.
  12. Depreciated Loss Coverage – It reimburses your costs to replace or repair damaged property. It does not pay for certain items that are compensated at market value. 
  13. Service Line Coverage – It pays up to $10,000 to repair and replace electric, underground water, data lines, and sewer lines that belong to you.

State Farm Home Insurance Pricing 

With State Farm, you can expect the State Farm insurance payment to come to about $1,500 each year. You can expect to pay about $122.50 each month.

State Farm Home Insurance Discounts

State Farm home insurance coverage offers the following discounts:

  • Multiple line discount combines homeowners insurance from State Farm with other coverage options such as their auto insurance policy to give you a discount of up to 20%.
  • Claim-free discount offers reduced rates to customers who have not filed a claim even if they have switched to State Farm from another home insurance provider.
  • Roofing discounts save money when choosing impact-resistant roofing materials for their homes. The discount amount here varies from state to state.
  • Home alert protection discount saves money when you install a fire, burglar, or smoke alarm in your home, install a better lock on your doors and windows, or buy a fire extinguisher for your home.
  • Higher deductibles discount saves customers money if they raise their deductible by an additional $500, $1,000, or $5,000. The home insurance company will lower its premium. 

Customer Satisfaction and Financial Strength Review

State Farm home insurance provider has a superior financial strength rating. The State Farm AM Best rating is A++. This is the highest rating an insurance company can receive from AM Best. 

The S&P rated the insurance provider with an AA, which, again, is an extremely good rating to earn for a home insurance provider. 

In terms of State Farm insurance customer service, the home insurance provider meets customers’ expectations regarding filing complaints, addressing concerns, discounts, and different coverage options. BBB awarded State Farm an A+, which shows very high customer satisfaction.

Platform Rating
BBB  A+
ConsumerAffairs 3.9
Trustpilot 2.5

 

Customer Support 

State Farm offers a user-friendly website that’s easy to navigate and packed with useful information for potential and existing customers. Customers can obtain State Farm home insurance quotes and purchase coverage online. 

Customers can find an insurance agent nearby from the company’s website. If they filed a claim, they can track and manage their claims online. 

The home insurance provider offers customers a free mobile app, which they can download on their mobile phones. 

The mobile app allows them to view their insurance card and policy information, obtain a quote, submit their claim online, and see the status of their claim online. The mobile app even has an ATM locator. 

The State Farm insurance customer service is available around the clock, and you can leave a comment from their website. 

They have a dedicated number for different types of queries. There is a separate number for hearing and speech impaired customers.       

The State Farm insurance customer service number is 800-782-8332.    

Ease of Buying and Claims Handling 

State Farm claims are easy to file. You can file them in several different ways. 

You can file a claim online from their website, call, or use their mobile app. After that, you can manage your claim online from their website by logging in with your username and password. 

Comparison With Competitors 

We compared State Farm with a few of its major competitors. The comparison can help you decide on the home insurance provider you should select. 

State Farm vs Progressive 

Your experience with Progressive home insurance depends on where it is underwritten. In comparison with State Farm, it scored a 2 out of 5 on the J.D. Power Property Claims Satisfaction Study, whereas State Farm has a 4 out of 5 ratings on it.

State Farm vs GEICO

GEICO’s home insurance provider does not underwrite their homeowners’ coverage, which is why the J.D. Power’s Property Claims Study has not ranked them. 

Both home insurance providers have received an A+ rating from the Better Business Bureau. State Farm’s home insurance coverage costs slightly more than GEICO. 

State Farm vs Allstate 

Both State Farm and Allstate offer customers standard homeowners insurance coverage. They both provide several customized options along with additional coverage. 

State Farms sells insurance through local insurance agents, whereas Allstate sells directly through the insurance agency or independent brokers.

State Farm vs Farmers

From a financial perspective, both are good choices for home insurance. State Farm has a better AM Best rating of A++. Farmers has only an A. Both offer a large variety of coverage options.     

State Farm vs Liberty Mutual

State Farm and Liberty Mutual both offer specialized coverage options for mobile homes, income properties, and condos. They offer standard insurance coverage along with several optional coverages. 

Both allow users to customize their policies.  State Farm sells coverage options through local agents, whereas Liberty Mutual sells policies over the phone or through independent agents. 

Both offer mobile apps. Liberty Mutual’s home coverage options are more affordable than State Farm.

Pros & Cons

The Pros

  • Online quoting system
  • Provides insurance options that are often declined by other insurance providers
  • Perfect for tech savvy customers

The Cons

  • Limited options for deductibles
  • Much expensive compared to the other insurers
  • It offers flood insurance but you will need to purchase a separate policy

Final Verdict

Hope that you will find our State Farm home insurance reviews helpful. State farm, compared with the other insurers offers a wide variety of home insurance options that are often rejected from the other insurers. Their website and mobile app are great and easy to use. The only downside of this insurer is that their pricing is much higher compared to other insurers.

FAQs

Can State Farm cancel my homeowner’s insurance?

Yes, State Farm home insurance can cancel your homeowners insurance. If they do, they will need to inform you at least 30 days before they cancel your homeowners insurance coverage. 

Read the contract before signing to learn the different reasons State Farm can cancel your homeowners insurance and the time frame and method they follow.

Does State Farm homeowners insurance cover termites?

No, State Farm homeowners insurance does not cover damage caused to the house by termites. The home insurance provider will also not cover termite extermination in the event you require pest control.

Why would State Farm cancel my insurance?

The most common reason State Farm may cancel your homeowners insurance is if you do not pay for your coverage for a certain number of months.
Other reasons they may cancel your coverage include you making several claims, your home is in despair or requires renovation or maintenance, criminal record or false declarations, and/or your situation changed.

Does State Farm pay dividends?

No, State Farm home insurance company does not pay dividends for most years.

Does State Farm homeowners insurance cover fire?

State Farm home insurance coverage covers the loss you experience due to fire, lightning, freezing of plumbing system, theft, and hail damage or windstorm.

Does State Farm offer cyberattack coverage?

State Farm home insurance provider offers personal cyber insurance. They are the only major home insurance provider that offers cyber insurance.

Is State Farm homeowners insurance expensive?

State Farm home insurance reviews reveal that this company’s rates are very expensive. It will cost you twice as much as the cheapest home insurance provider on the market.