State Farm Home Insurance Review: Service, Cost, & More (2022)

MoneyGeek’s State Farm homeowners insurance review gives the insurer an overall score of 90 out of 100. Our internal rating system considered cost, user experience and financial strength. Although State Farm scored a perfect 5.00 for financial stability and rated high in affordability, it received a moderate score for customer satisfaction.

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Last Updated: 10/25/2022
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iconribbonscore90

4.01/5

satisfaction

4.58/5

affordability

5/5

stability


pros

This is an iconExcellent financial stability rating
This is an iconMany discounts and add-on coverages
This is an iconMultiple online tools for policyholders
This is an iconSeveral bundling options for homeowners policyholders

cons

This is an iconCheaper options are available
This is an iconCustomer satisfaction rating is lower compared to other criteria

Verdict

State Farm can be a solid option for homeowners insurance. You can customize your policy by selecting from their menu of add-on coverages. It also offers other insurance products that may qualify you for a bundling discount if you combine them with your homeowners policy.

Policyholders can take advantage of State Farm’s online tools allowing better (and easier) account management. When it comes to filing claims, State Farm is sure to deliver on its financial obligations, with an A rating from AM Best.

Does State Farm Have Good Customer Service?

MoneyGeek rated State Farm as one of the top providers of homeowners insurance in America. Using an internal scoring system that factors customer satisfaction, affordability and financial stability, we gave State Farm an overall score of 90 out of 100. This company is known for its affordable rates and financial strength, but its customer experience lags slightly behind its other attributes.

Customer Satisfaction Rating

Customer experience is crucial to homeowners insurance as it indicates the quality of service you can expect from your provider. J.D. Power’s 2021 U.S. Home Insurance Study puts State Farm in fourth place for overall customer satisfaction. That roughly translates to a 4 out of 5 in MoneyGeek’s internal ranking.

Customer Complaint Index

State Farm

More than overall service, MoneyGeek also explored State Farm’s customer complaint index from NAIC. Compared to the national median of 1.00, it has a score of 1.01. That means the number of complaints filed with State Farm is roughly equivalent to the average insurance provider.

Financial Stability Rating

AM Best gives State Farm an A rating that indicates it has excellent financial strength. You can rest easy knowing State Farm is in a great position to fulfill its financial obligations, which is crucial when filing claims.

What to Expect From State Farm Homeowners Insurance

MoneyGeek’s guide gives you an overview of what you can expect if you purchase your homeowners insurance from State Farm. We’ll touch on various services and features you may encounter in your customer journey.

1

Getting a quote

You can get a homeowners insurance quote from State Farm on their website. Their online quote tool allows you to gather pertinent information using your unique profile.

2

Customer support

You can reach out to State Farm for any comments or questions by calling 800-STATE-FARM (800-782-8332). They also provide a separate support line if you need technical assistance regarding your online account.

3

Filing a claim

State Farm provides multiple platforms for filing claims, such as through your mobile app or on their website. You can also use the same channels to track a claim’s progress.

4

Canceling your policy

There may come a time when you want to cancel your State Farm homeowners insurance policy. You can do this by phone, through the mail or in person.

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MAKING A HOMEOWNERS INSURANCE CLAIM WITH STATE FARM

State Farm homeowners insurance policyholders can file claims in several ways. You can call 800-SF-CLAIM (800-732-5246) or speak to your agent. Other options include filing through their website or using a mobile app, which allows you 24/7 access.

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STATE AVAILABILITY

State Farm homeowners insurance is widely available in the United States. You can purchase it in most states except Connecticut, Massachusetts and Rhode Island.

How Much Does State Farm’s Homeowners Insurance Cost?

The average cost for homeowners insurance is $1,979 per year. However, it may vary depending on your unique profile. Insurers will consider factors like your home’s location, age and construction type, among other things. It’s best to speak with a representative to determine how much your State Farm homeowners insurance costs.

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  • Dwelling Coverage
    Annual Premium
  • 100,000
    $1,326
  • 250,000
    $2,194
  • 500,000
    $1,682

Insurers look at your location, how much it costs to replace your home and personal property and your preferred deductible when setting your premium.

Typically, a $250,000 dwelling coverage is a reasonable amount, but the best way to compute how much insurance you need is by assessing your home’s value. You’ll need to determine limits for other coverages as well, which also affect your premium.

MoneyGeek’s home insurance calculator can provide you with an estimate based on your preferred limits.

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Home Insurance Calculator

State

Alabama

Dwelling Coverage

$100,000

Deductible

$500

Liability

$300,000

Personal Property

$20,000

Credit Score

Excellent
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low end

on average

high end

These are annual estimates. Get a personalized quote to determine your costs.

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MONEYGEEK EXPERT TIP

Choosing a lower coverage limit and a smaller deductible may help you save on premiums. However, rebuilding costs can be expensive if a covered peril damages your home. You may spend more out of pocket if you have lower limits.

What Discounts Does State Farm Offer?

State Farm advertises seven discounts for homeowners insurance, which is equal to the industry average. However, none of these discounts are unique since other providers offer similar savings. Those considered less common (but still not unique) are State Farm’s continuously insured and roofing material discounts.

  • Discount
    Description
  • Protective Device

    You can get a lower premium if you have home security devices installed. These include burglar, smoke and fire alarms.

  • Home Renovation

    A newly renovated home may qualify you for a lower premium.

  • Claims Free

    You can get a discount if you’ve made few-to-no claims in the past.

  • New Home

    A recently built home may qualify you for more affordable homeowners insurance.

  • Bundle

    State Farm also offers auto insurance policies. You can bundle it with your homeowners insurance policy and qualify for a lower rate.

  • Continuously Insured

    This is a discount based on how long you’ve been with State Farm. It looks at the duration of your current policy.

  • Roofing Material

    Using qualifying impact-resistant roofing material may qualify you for a lower premium in some states.

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MONEYGEEK EXPERT TIP

Bundling is a great way to get more affordable coverage. Homeowners insurance policyholders with State Farm can purchase other products from them, such as life, renters or auto insurance, for more affordable rates as a package deal. Bundling homeowners and car insurance with State Farm can save you up to $1,127 per year.

Which Coverage Types Does State Farm Offer?

You can personalize your State Farm homeowners insurance policy by including add-on coverages. You can choose from 12 endorsements, which is considerably higher than the industry average of five.

Although State Farm doesn’t have any unique coverages, more than half are relatively uncommon. An example of this is mold coverage, which has a maximum limit of $20,000. Damage from mold is part of the water damage category, the second-highest cause of home insurance loss. You can also protect yourself against expenses from earthquakes by purchasing additional coverage.

State Farm offers several endorsements, which you can purchase for additional protection. You can use the information below to gather more information about what add-on coverages are available and how these can help you.

1

Scheduled Personal Property

Get additional coverage for your belongings. Note that these are limited to the following:

  • Jewelry and furs ($2,500)
  • Silverware and goldware ($2,500)
  • Firearms ($2,500)
  • Fire department service charge ($500)
  • Business property ($1,500)
2

Building Ordinance or Law

State Farm covers the property value lost and increased costs when some municipal ordinances regulate building construction. This coverage is available for up to 10% of the dwelling coverage amount.

3

Back-Up of Sewer or Drain

You may incur damages due to malfunctions in sump pumps, sump pump wells and other systems that remove subsurface water. This coverage takes care of these losses up to your chosen limits.

4

Cyber Event / ID Theft

Covers case management services and reimbursement in situations wherein someone uses your identity to make fraudulent activities. These may include establishing credit accounts, securing loans or entering contracts.

You may also get your expenses from data recovery and system restoration reimbursed.

5

Mold

State Farm covers damages caused by fungus and mold. You can choose your limit up to $20,000.

6

Earthquake

Your policy allows you to reimburse expenses from damages due to earthquakes or volcanic eruptions. It only applies to your dwelling and personal property coverages.

7

Loss Assessment

This endorsement is only available if you are part of a homeowner association. It covers your portion for a loss your HOA assesses for all members.

8

Energy Efficiency Upgrade

State Farm reimburses up to 150% of what you spend if you use energy-efficient equipment to replace damaged components. This applies to heating units, air conditioners and water heaters.

9

Home Systems Protection

Abrupt and accidental breakdowns of permanently installed systems may cause damage. This coverage shoulders these expenses pertaining to heating, cooling and filtration systems for air and water.

10

Service Line

State Farm covers the amount you spend when repairing or replacing underground water and sewer pipes. It also includes damages incurred if your electrical service or data lines break.

11

Home Rental

It is best for homeowners who rent out their property for more than 30 nights in a 12-month period. It gives you property and liability coverage for incurred damages.

12

Vacancy

This add-on coverage helps with costs due to glass breakage or vandalism if your home remains empty and unoccupied for more than 30 days.

It’s always best to compare homeowners insurance quotes to get the best possible deal. It’s an excellent opportunity to compare coverages, not just the costs.

If you live in an area where coverage for flood, earthquake or insect damage is necessary, remember that most policies don't include these. However, you can get protection by purchasing an endorsement.

The amount of insurance you need depends on your specific situation. You may personalize your policy based on your requirements, but ensure it includes at least these standard coverages.

What Online Homeowners Insurance Tools Does State Farm Offer?

More than half of Americans aged 35–65 own homes and are likely to carry home insurance policies. Companies like State Farm have made innovations to provide better service to their customers.

State Farm offers various tools designed to make information more accessible. Although some are limited to policyholders, non-customers can take advantage of their online quote tool and calculators.

Our guide details these below.

Other State Farm Insurance Products

Homeowners insurance isn’t the only product State Farm offers. You can also explore policies that protect your condo, vehicle, life, health and small business. If you’re shopping around for potential providers, State Farm can be a one-stop-shop insurer.

The table below enumerates the different insurance products you can purchase from State Farm. Remember, you may qualify for a bundling discount if you get multiple policies from them.

  • Type of Product
    Description
  • Vehicle Insurance

    State Farm’s auto insurance only covers standard motor vehicles. However, you can also find policies for motorcycles, boats, off-road vehicles and even motorhomes.

  • Condo Insurance

    Your condo association's insurance typically covers the actual structure and common areas, not your specific unit or belongings. State Farm’s condo insurance compensates for that.

  • Life Insurance

    State Farm’s life insurance offers three types of policies — term, whole and universal. You can select which fits your needs best to secure your loved ones’ financial future.

  • Health and Disability Insurance

    State Farm offers various health insurance policies that may meet the needs of individuals, families and seniors. You can even purchase supplemental coverage and disability insurance.

  • Small Business Insurance

    State Farm offers multiple options to ensure your business is protected. You can select from various insurance policies. You can purchase coverage for commercial vehicles, workers’ compensation and a commercial building under construction, among others.

Methodology

To analyze State Farm’s quality as a homeowners insurance company, MoneyGeek analyzed their website, manually collected quotes and consulted consumer intelligence organizations such as J.D. Power, the NAIC and AM Best.

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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