State Farm Homeowners Insurance Review

If you're a homeowner and want to know more about State Farm's customer service, affordability, coverage options and financial stability, MoneyGeek has you covered. We gathered data from Quadrant Information Services, J.D. Power and AM Best to develop our review of State Farm. This comprehensive analysis will help you determine whether State Farm is the right home insurer for you.

When it comes to national home insurance providers, State Farm ranks third out of eight major insurers, with a MoneyGeek score of 88 out of 100 for $250K in dwelling coverage. State Farm ranks highest in affordability and financial stability. It does fairly well in customer service, but it suffers from a low score in coverage options. Other major companies, like Chubb, may have better customer service or endorsement options, but tend to be much more expensive.

It's important to note that the best insurance provider for you depends on your unique circumstances, such as your location, home value, coverage needs and preferences. See how State Farm compares to other national home insurance providers in the table below.

State Farm's score may change depending on where you live. Affordability fluctuates with variations in the cost of living, and customer service can also vary based on regional service capabilities. For example, State Farm's MoneyGeek score is 94 in Arkansas but drops to 53 in Georgia. See how State Farm ranks in your state using the table below.

State Farm’s customer satisfaction score is 25 out of 30, which is high compared to other providers. It ranks third out of eight national insurers in customer satisfaction.

Customer satisfaction is important in homeowners insurance because it affects the overall experience, especially during the claims process. For example, if a homeowner experiences a fire, a company with excellent customer satisfaction will likely handle the claim efficiently and empathetically, making a stressful situation more manageable and ensuring you receive the necessary support and compensation. Choosing an insurance provider with high customer satisfaction ratings often leads to a smoother and more positive experience.

MoneyGeek’s customer satisfaction ranking for State Farm can vary from state to state due to differences in regulations, customer service quality and other localized factors. For example, State Farm gets a perfect score in Delaware but only 10 out of 30 in Wisconsin. Use the table below to find MoneyGeek’s customer satisfaction scores for State Farm and other national providers in your state.

State Farm's affordability score is 55 out of 55, ranking third among eight national providers. State Farm is generally considered inexpensive for homeowners. Whereas the national average cost of homeowners insurance for a policy with $250K dwelling coverage is $2,572 per year, State Farm offers a similar policy for $1,931, making it $641 cheaper.

However, insurance companies do not disclose how they calculate premiums. Whether your State Farm home insurance will be cheaper or more expensive than the national average depends on factors such as your location and the specific coverage you need. For example, living in a high-risk area or needing extensive coverage can increase your premium.

The table below shows State Farm's rates compared to other providers based on your desired dwelling coverage.

Dwelling coverage refers to the portion of homeowners insurance that covers the cost to rebuild or repair your home if a covered peril damages it. The higher the dwelling coverage, the higher the insurance premium. Conversely, the lower the dwelling coverage, the cheaper homeowners insurance will be, making it easier to find affordable homeowners insurance.

For example, a State Farm policy with $1M dwelling coverage costs $5,633 annually, whereas a $100K policy costs only $1,043 annually. It's important to determine how much dwelling coverage you need to ensure you are adequately protected without overpaying.

State Farm's premiums can vary from state to state due to factors like credit score, location, and claims history. External factors such as proximity to a fire station, insurer's loss costs, weather risks, and crime rates also play a role.

For example, the average annual premium for $250K dwelling coverage in Alaska is $1,529, whereas it's $3,220 in Alabama. These differences highlight how location impacts insurance costs. Take a look at the average cost of homeowners insurance by state for State Farm below:

State Farm offers three discounts to help make homeowners insurance cheaper. With discounts for bundling policies and having protective devices, homeowners can easily qualify for savings. Read about State Farm's discounts in the table below.

State Farm offers five coverage endorsements, two of which are common and three of which are rare. Endorsements are optional coverages you can add to a policy, while standard coverages are included by default.

MoneyGeek's coverage score examines an insurer's endorsements and factors in whether they are common or rare. Scoring a 3 out of 10, State Farm's low score suggests it doesn't offer many additional coverages beyond the basics or has fewer offerings than competitors. The tables below provide information on all State Farm home endorsement options.

Homeowners insurance typically includes five standard coverages: dwelling coverage, other structures coverage, personal property coverage, personal liability coverage and loss of use coverage. Most providers, including State Farm, include these coverages by default in your policy, meaning you cannot purchase them individually or remove them.

In most cases, you can set your desired limit for each coverage, although some — like other structures or loss of use coverage — may be set at a percentage of your dwelling coverage. Check out each standard home insurance coverage using the table below.

State Farm's default homeowners insurance doesn't cover flood or earthquake damage. Homeowners insurance is designed to cover sudden or accidental damage from specific perils, so intentional damage is not included. Here are other perils that are not covered:

• Flood damage: Flood damage is not covered under standard homeowners insurance, but you can purchase a separate flood insurance policy to protect your home from flood-related damage.
• Earthquake damage: Similar to flood damage, earthquake damage is not included in standard policies. A separate earthquake insurance policy is available for those in high-risk areas.
• Intentional damage: Any damage you or a family member intentionally cause is not covered. Homeowners insurance is meant to protect against accidental or unforeseen events.
• Wear and tear: Normal wear and tear or maintenance issues are not covered.
• Pest infestations: Damage caused by pests like termites or rodents is not covered. Pest control and prevention are considered the homeowner's responsibility.

State Farm's financial stability score is 5 out of 5, which is high compared to other providers. This means it has the resources to fulfill claims, even in widespread disasters. Choosing a financially stable insurer like State Farm can provide peace of mind and security.

MoneyGeek's financial stability score examines a company's financial health and is based on AM Best ratings, one of the largest international credit-rating agencies.

If you're interested in getting a policy with State Farm, you'll need to gather your personal information and details of your home and submit an application. You can typically complete the process online, but you may have to contact an agent depending on where you are. Below, we'll show you the step-by-step process of buying homeowners insurance at State Farm.

Doing your research before purchasing a homeowners insurance policy is a necessary step. Below, we answer some of the most frequently asked questions about State Farm’s home insurance.