Service, Cost and More
State Farm Renters Insurance Review
State Farm is among the top-rated renters insurance providers based on MoneyGeek’s review. We give the company an overall score of 95 out of 100 due to its excellent customer satisfaction, affordability and financial stability ratings. That said, the company has limited discounts and coverage offers.
Overall, State Farm gets an excellent rating for its superior customer satisfaction, financial stability and affordability. The company has numerous online tools and features that make the customer experience more convenient and transparent.
However, MoneyGeek’s State Farm renters insurance review shows that the company’s NAIC customer complaint ratio is slightly higher than the national median. Additionally, the company has limited discount and coverage types. That means individuals looking for opportunities to save may not find State Farm the best option.
Does State Farm Have Good Customer Service?
Customer service is essential when looking for the best renters insurance provider. The insurer you choose should be able to provide quality service in your time of need and follow through on legitimate claims.
State Farm is MoneyGeek’s top pick for renters insurance based on its strong customer satisfaction score from J.D. Power and financial stability ratings from AM Best. According to the National Association of Insurance Commissioners (NAIC), their customer complaint index is just slightly above the national median.
Customer Satisfaction Rating
State Farm has a J.D. Power customer satisfaction score of 866 out of 1,000, ranking second overall. J.D. Power measures customer satisfaction based on a company’s interaction, policy offerings, price, billing process, policy information and claims. The industry average is 848, meaning State Farm’s reputation in this area is better than a typical competitor.
NAIC score is another way to measure customer satisfaction. This score is based on the number of customer complaints a company receives compared to others in the market. On the NAIC’s complaint index report, State Farm scored 1.01, just above the 1.00 national median. This means State Farm received slightly more complaints than the average insurer.
Financial Stability Rating
A financial stability rating reflects how well an insurance company meets its financial obligations to pay off legitimate claims. AM Best is an organization that verifies insurance companies’ financial stability and assigns them a financial strength rating. AM Best gave State Farm an A++ rating, meaning State Farm has a superior ability to meet its obligations.
What to Expect From State Farm Renters Insurance
Setting up a renter’s insurance policy is easier when you know what to expect. However, this process often varies between insurers. In the steps below, MoneyGeek breaks down how to acquire, manage and cancel a renters insurance policy with State Farm.
Getting a quote
You can get a State Farm renters insurance quote online, needing just your ZIP code and address to get started. MoneyGeek has already collected some quotes from State Farm, which you can see in the next section.
State Farm policyholders can contact the company 24/7 via phone. You can also communicate with the company through mail, mobile app or schedule a virtual appointment.
Filing a claim
You can file a claim through the company’s website, mobile app or call 800-732-5246.
Canceling your policy
You can cancel your State Farm renters insurance policy by calling your agent over the phone, writing them a letter or visiting a State Farm location in person. When canceling a policy, you will have to provide your name, address, phone number, policy number and the date you want your policy to end. If you’ve decided to switch insurers, you’ll have to include your new provider, policy number and policy start date.
State Farm’s renters insurance is available in all 50 states and Washington, D.C.
How Much Does State Farm’s Renters Insurance Cost?
Various factors affect the cost of renters insurance. Your choice of insurer is one of these. In general, renters insurance costs around $13 per month. However, actual rates may differ.
Talk to an agent to determine how much a State Farm renters insurance policy costs. You may pay more or less for renters insurance depending on your coverage limit, which is derived from the value of your personal property.
AVERAGE COST OF STATE FARM RENTERS INSURANCE
- Personal Property CoverageAnnual Rate
The price you pay for renters insurance heavily depends on how much coverage you choose. You don’t want too much or too little coverage. A good starting point is $20,000. However, it’s best to get the appropriate amount. Use MoneyGeek’s personal property calculator to find out how much coverage is suitable for your needs.
Knowing how much your personal property costs will give you an idea of how much coverage you need. This will prevent you from buying too much or too little coverage, which can help you save money.
What Discounts Does State Farm Offer?
State Farm offers two discounts for renters insurance, which is less than the industry average of five. State Farm renters insurance policyholders can check if they qualify for a multi-policy or home protection device discount to get cheaper rates. Other insurers commonly offer both discounts.
State Farm’s multi-line discount applies to policyholders who bundle or purchase different insurance policies from the company. For example, you can save up to $722 by bundling your State Farm auto and renters insurance policies.
Home Alert Protection Discount
Having safety devices — such as a smoke detector, fire alarm, burglar alarm or other home monitoring system — can help you get a premium discount on your State Farm renters insurance.
One way of saving money is to bundle multiple policies. If you own a car, State Farm offers a multi-line discount that can help you save hundreds of dollars.
However, there aren’t many opportunities to save with State Farm. You may need to take on lower renters insurance coverage to get cheaper rates.
Which Coverage Types Does State Farm Offer?
Coverage also affects the cost of renters insurance. On average, renters insurance providers advertise seven coverage options.
State Farm renters insurance policy owners can choose from five optional coverages. Two of these — additional business property coverage and incidental business liability coverage — are unique offerings. The company also has earthquake coverage, which requires a separate policy, but lacks storm damage coverage.
Below, MoneyGeek details each of the five additional coverage options for a State Farm renters insurance policy. These include personal injury, identity restoration, earthquake damage, business owners, and business and professional liability insurance.
Your insurance will also cover personal claims with this umbrella policy, including defamation of character, libel or slander. The minimum coverage is $1 million. You can increase coverage in $1 million increments.
Identity Restoration Insurance
For an additional $25 per year, you can add this endorsement. It provides identity restoration insurance in case of identity theft for you, your spouse and any relatives or dependents under 21 years old living in your household.
You can get this coverage as a separate policy. It covers earthquake damage.
Business Owners Insurance
You can get a business owners policy (BOP) as a separate policy. It bundles general liability and property insurance to protect against unexpected risks. It’s best for small- to medium-sized businesses.
Business and Professional Liability Insurance
This coverage requires a separate policy. It protects against costs related to professional liability lawsuits, such as defense costs and judgments for professional negligence, error or omission.
When shopping for renters insurance, it’s crucial to ensure that you’re getting all the standard renters insurance coverages. These include coverage for personal property, personal liability, medical payments and additional living expenses.
Depending on your needs and situation, you may also need to get additional coverage against flood, earthquake and insect damage. Some are rarely offered, so make sure you read the fine print before purchasing a policy.
Renters Insurance Coverages: What to Expect
- Personal Property Coverage
- Personal Liability Coverage
- Medical Payments Coverage
- Additional Living Expenses (Loss of Use)
- Flood Coverage
- Earthquake Coverage
- Insect or Bed Bug Coverage
What Online Renters Insurance Tools Does State Farm Offer?
The availability of different online tools and features also helps to improve customer experience. State Farm offers several tools that policy owners and interested non-owners can use for free, including a quote tool, mobile application and calculators. You can also easily set up a payment plan, pay bills or file claims online.
Other State Farm Insurance Products
Aside from renters insurance, State Farm offers various insurance products. These include vehicle insurance, life insurance, health insurance, small business insurance, pet medical insurance and disability insurance. You can also purchase any of these products if you buy renters insurance.
- Type of ProductDescription
You can get State Farm auto insurance for your car. You may also buy insurance for your motorcycle, boat, off-road vehicle, motorhome and travel trailer.
State Farm offers life insurance. Choose from among their term, whole and universal life insurance policies.
Depending on your needs, you can get supplemental health insurance or a Medicare supplement plan. State Farm also offers individual medical health insurance.
Small Business Insurance
You can get a State Farm business owners, commercial auto, liability umbrella or contractors insurance policy. Businesses may also purchase workers’ compensation insurance from State Farm.
Pet Medical Insurance
Pet owners can get an insurance policy for their dogs and cats. This type of insurance covers your pet’s medical needs.
Compare Insurance Rates
Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.
To evaluate State Farm’s quality as a renters insurance company, MoneyGeek analyzed State Farm’s website, manually collected quotes and consulted consumer intelligence organizations such as J.D. Power, the NAIC and AM Best.
About the Author
- AM Best. "AM Best Affirms Credit Ratings of State Farm Mutual Automobile Insurance Company and Most of Its Subsidiaries." Accessed March 29, 2022.
- J.D. Power. "Home Insurers Struggle with Customer Loyalty as Boomers Flock to Rental Market, J.D. Power Finds." Accessed March 29, 2022.
- National Association of Insurance Commissioners. "State Farm Fire & Cas Co National Complaint Index Report." Accessed March 29, 2022.
- State Farm. "A Home & Property Claim Shouldn’t Make You Want to Run Away." Accessed April 29, 2022.
- State Farm. "How to Cancel Your State Farm Insurance Policy." Accessed March 29, 2022.
- State Farm. "Insurance." Accessed March 29, 2022.
- State Farm. "Multiline Insurance Discounts." Accessed March 29, 2022.