Overview of State Farm Home Insurance
State Farm may have started out as an auto insurance provider in 1922, but these days the National Association of Insurance Commissioners lists State Farm as the largest home insurance company in the country, with a market share of 20 percent, more than double that of its closest competitor. The State Farm “Like a Good Neighbor” jingle surely helps to keep this company at the forefront of consumers’ minds when they look for home insurance.
How Does State Farm Home Insurance Rate?
Consumer Satisfaction Rating
These ratings are from the J.D. Power 2015 U.S. Household Insurance Study – Homeowners Insurance. The highest score for each category is five stars. The Allstate Insurance Company subsidiary rated here may not be the subsidiary that underwrites your insurance policy. Check with your insurance agent for more information.
Customer Complaint Ratio
The National Association of Insurance Commissioners collects complaint information from state insurance regulators. The national median complaint ratio is 1. A score of less than 1 means a company has a less than average number of complaints, while a score higher than 1 means it has more than average. Find out more from the NAIC website. The Allstate Insurance subsidiary rated here may not be the subsidiary that underwrites your insurance policy. Check with your insurance agent for more information.
Last Updated: September 2016
Financial Strength Rating
A Best’s Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. It is not a warranty of a company’s financial strength and ability to meet its obligations to policyholders. View our Important Notice: Best’s Credit Ratings for a disclaimer notice and complete details at http://www.ambest.com/ratings/notice.
Financial Strength is rated on a scale of D (poor) to A+ (superior). A rating notch of either a second “+” or a “-“ indicates the gradation of financial strength within the category. We can’t guarantee that the subsidiary of Allstate Insurance rated here is the subsidiary that will underwrite your insurance policy. Check with your insurance agent and review A.M. Best’s Financial Strength Rating Guide for more information.
Best’s Credit Ratings™ are under continuous review and subject to change and/or affirmation. For the latest Best’s Credit Ratings™ and Best’s Credit Reports which include Best’s Credit Ratings™), visit the A.M. Best website at http://www.ambest.com. See Guide to Best’s Credit Ratings™ for explanation of use and charges.
Best’s Credit Ratings™ reproduced herein appear under license from A.M. Best and do not constitute, either expressly or impliedly, an endorsement of MoneyGeek.com or its recommendations, formulas, criteria or comparisons to any other ratings, rating scales or rating organizations which are published or referenced herein. A.M. Best is not responsible for transcription errors made in presenting Best’s Credit Ratings™. Best’s Credit Ratings™ are proprietary and may not be reproduced or distributed without the express written permission of A.M. Best Company.
Source A.M. Best
Effective Date: June 2016
Pros and Cons of State Farm Home Insurance
- State Farm offers a wide range of property insurance policies, including some types that other carriers decline to write, such as manufactured homes, small business, and farm and ranch.
- The State Farm online quoting system includes both a tool for quoting scheduled property and access to a replacement cost estimator.
- State Farm determines liability risk for dogs based on individual bite history, rather than on the breed of the dog, which owners of oft-maligned breeds like pit bulls will appreciate.
- State Farm shows a commitment to customer convenience with its Pocket Agent mobile app, which has features for paying bills, checking on claims, finding agents and more.
- State Farm ranked only “About Average” (a score of 3 out of 5) in customer satisfaction in the 2015 J.D. Power U.S. Household Insurance Study for Home Insurance.
- The online quoting system assigns a local agent to assist with your policy, but not necessarily the one located closest to your property address.
- Rather than offering dollar-amount deductibles, the home policy deductibles are calculated as a percentage of the dwelling amount, with a $1,000 minimum.
- The online quoting system is not available for mobile or manufactured homes.
State Farm Home Insurance Coverage
State Farm offers home insurance coverage at a level one would expect from one of the largest and most successful carriers in the country, with all of the standard items automatically included and all of the optional extras (excluding flood) explained and made available. It also has online tools to help homeowners organize and insure their property, such as the HomeIndex for registered State Farm policyholders and the MoveTools mobile app for anyone.
As the nation’s insurance carrier with the most home insurance policies in force and the largest amount of premium collected, State Farm could be said to set the standard for what a typical home insurance policy looks like. There aren’t many surprises to be found in the property and liability coverages that are offered, other than perhaps the fact they don’t have a restricted breeds list for dogs, choosing instead to base risk assessment on the bite history of the individual animal, which means you won’t be denied coverage or have to pay a surcharge solely because of the type of dog you have.
State Farm includes access to a third-party online estimating tool, 360Value, right from the quoting website in order to more accurately find the replacement value of your home, and strongly recommends coverage of at least 100 percent of replacement value.
If you have your dwelling coverage at the level it should be—at least 100 percent of the replacement value—your State Farm policy includes both expanded replacement cost coverage of 20 percent and inflation protection coverage.
While the personal property coverage is set by default at 75 percent of the dwelling coverage, State Farm features its HomeIndex home inventory tool to record and estimate the value of the policyholder’s belongings.
State Farm offers liability protection coverages on its home insurance policies from $100,000 to $1,000,000.
State Farm’s other structures coverage is identified as a dwelling extension coverage and is set at 10 percent of the dwelling coverage.
State Farm offers coverages of $1,000, $2,000, $3,000, $5,000 and $10,000 for guest medical.
State Farm’s status as the nation’s largest home insurance company puts it in the position of establishing industry standards for add-on coverages. State Farm did, however, remove itself from participation in the National Flood Insurance Program a number of years ago, requiring policyholders who want flood insurance to seek that coverage from the federal government through different insurance companies.
When the property is insured to at least 100 percent of replacement cost, State Farm will include a 20 percent expanded replacement cost, as will most major insurance carriers.
State Farm’s home insurance policies include an automatic premium increase from year to year to protect against the replacement cost increasing beyond the replacement cost coverage due to rising costs of labor and material.
There is an optional coverage of $10,000 for a backed-up sewer or drain, but just what defines a covered incident calls for an in-depth conversation with your agent.
The State Farm online quoting program does a good job of detailing how much coverage is included for items in these special categories and how much it will raise the premium in order to schedule them.
State Farm does provide for limited additional coverage for certain losses involving trees and shrubs.
Optional earthquake insurance is available on a State Farm home insurance policy with a deductible that is a percentage of the dwelling coverage amount.
State Farm identifies this optional coverage as “identity restoration coverage,” a label that is a bit more accurate than the name given to it by some other companies. This coverage costs $25 per year.
State Farm does not set a financial cap on this coverage, which is included in its home insurance policies, but instead covers the actual loss incurred.
Available Discounts on State Farm Home Insurance Coverage
There are a number of ways to reduce your home insurance premium with State Farm, although most of them are via standard discounts that can be found at any major insurance carrier.
|Type of Discount||Description|
|Multiple line discount||A significant savings can be had by bundling State Farm home and auto policies together to receive a multi-policy discount.|
|Roofing discount||Using certain impact-reducing materials on your roof can save you money on your State Farm premium. But only certain materials apply and there are restrictions, so check with your agent about this discount.|
|Home Alert Protection discount||Discounts are available for safe home features such as automatic sprinklers, a reporting burglar alarm, fire extinguishers and deadbolt locks.|
|Pay in full discount||Although not technically a discount, State Farm policyholders will save money by paying the annual premium in full, thereby avoiding the transaction fees applied to installment plan payments.|
How to Make a Home Insurance Claim with State Farm
State Farm employs a multi-channel approach to filing a claim in order to make it as convenient as possible for the policyholder. Claims can be reported online, called into the toll-free claims number or reported directly to the policyholder’s local agent. The State Farm website has a list of steps to take throughout the process to help the entire experience run smoothly. State Farm also provides an online tool to help you check the status of a claim that has already been filed.
How to Contact State Farm Home Insurance
Customer Service Phone Number 800-440-0998
Claim Phone Number 800-782-8332