You don’t find many homeowners policies for $100 and change per month that include replacement cost value coverage for your things and your home. While State Farm’s free valuables coverage is a little old-fashioned (it covers jewelry and furs), their business property coverage is going to be a sweet perk for small business owners.
And — spoiler alert — that $100 monthly premium doesn’t include the special savings you get for bundling your State Farm auto and homeowners policies. More on that below. For now, here’s a breakdown of what’s standard and what’s à la carte with your State Farm home insurance policy.
Did You Know: Most insurance companies offer incentives for bundling multiple policies, usually 4 to 10 percent off your premiums. Beyond the savings, bundling means less paperwork for you, and it also means, if you ever do have claims to file, you’ll be dealing with one company, not two.
|Dwelling (including other structures)||Water backup|
|Personal property (replacement cost)||Earthquake|
|Personal liability||Identity restoration|
|Medical payments to others||Special computer coverage|
|Loss of use|
Homeowner’s Tip: One important perk we discovered when we reviewed State Farm’s homeowners plans was affordable extra replacement cost coverage to offset inflation or elevated future building costs.
FYI: Portable electronics insurance, which is becoming more and more popular these days, covers things like dropping your gadgets or spilling coffee on them, but not theft. Theft should be covered by your homeowners policy, believe it or not, even if someone filches your computer while you’re at Starbucks.
The average homeowners insurance rate in the U.S. is $104 per month. But guess what? That figure doesn’t tell us much. You can get a very detailed explanation of why in our 2022 Homeowners Insurance Guide. But the gist is that home insurance rates are very personal. They depend on you, your property, your state, and even your neighborhood.
When we tested out State Farm’s online quote generator, the home we “insured” was an older-than-average property in Charlotte, North Carolina, with a market value of around $250,000.
Our base quote was $109.66 per month. By “base,” I mean without RCV property coverage, water backup protection, earthquake insurance, or any of the other goodies State Farm lets you add on to their standard HO-3 policy. This is what it looks like.
Now, here’s how my State Farm quote compares to the U.S. median and to the other top 10 home insurance providers in the nation this year.
|State Farm monthly premium||State Farm yearly premium||Average monthly premium in the U.S.||Average yearly premium in the U.S.|
As you can see, State Farm home insurance policies are among the lowest on the market this year. The only homeowner provider we found that can match State Farm’s value for money is Lemonade. For a coverage-by-coverage breakdown, check out our Lemonade pricing and protections guide.
While State Farm’s basic HO-3 policy is generous, it doesn’t cover everything. (No basic plans we’ve found do.) But you can beef up your State Farm home insurance plan easily, and it’s surprisingly affordable.
When I added the works to my State Farm test policy, my monthly premium was still only $138. The works, in this case, were $65,000 in additional replacement cost property coverage (to protect my wallet against any surprise building costs down the line), water backup insurance, special computer coverage, and earthquake coverage.
Now, again, this rate doesn’t reflect what I’d pay if I bundled my auto insurance with State Farm. That rate (coming up in just a sec) was absolutely amazing.
Homeowner’s Tip: If you want to get an idea of average home insurance costs, your state’s average will be a more useful metric than the national median. To look up your state’s rate, check out Table 4 of the latest NAIC homeowners insurance report.1
State Farm might not be the one-stop policy shop we found when we reviewed Progressive insurance, but they do cover a huge amount of terrain, including six products for small businesses and plenty of health and life options, including disability.
But State Farm’s most popular sister coverage is auto insurance. There’s a reason. It’s cheap, stacked with smart perks, and available just about everywhere. When you bundle your auto and homeowners policies, the savings can be significant.
For starters, State Farm has solved one problem plenty of families with teenage drivers have faced for years: high rates for their driving-age kids. State Farm’s SteerClear® program, which works along the same lines as their Drive Safe & Save™ program, tracks younger drivers (25 and under) via their app when they’re on the road. If they’re not driving like maniacs, their rates may go down.
For the rest of the family, State Farm’s Drive Safe & Save app tracks everything from cornering and braking to “distracted driving” moments. Driving responsibly could knock 30 percent off your policy.
This is all great news for safe drivers. What would be even better? When we reviewed Lemonade’s homeowners policies, we discovered incentives to drive less. Popping to the supermarket for a gallon of milk might save a little time, but, personally, I’m down with saving a few bucks by walking.
Did You Know: In 2019, the National Highway Traffic Safety Association logged 3,142 road fatalities caused by distracted driving.2
Average insurance rates for renters are about $175 per year for $33,000 to $37,000 of coverage. That’s 15 bucks per month, or roughly three Iced Sugar Cookie Almond Milk Lattes.
Since a large part of what you’re protecting with renters insurance is your personal property, you’ll definitely want to explore State Farm’s coverage limits. For instance, if you have a lot of valuables or collectibles, or what would be considered “business property” (see above), you may need to pay extra for full coverage.
One thing you can count on is quality service. Along with another of our favorite homeowners providers, Lemonade, State Farm scored at the top of J.D. Power’s charts for renters’ customer satisfaction.3
Unusually, State Farm has separate plans for dogs and cats. What’s common to both policies is Trupanion’s inclusive coverage. They won’t turn your breed down like some insurance providers we’ve looked at. There are no settlement limits either, and you have access to medical experts 24/7.
Homeowner’s Tip: Whether you rent or own, you’re going to want to inventory your possessions, preferably before you settle on a coverage limit. Taking inventory is old school. You don’t need a special app to do it, just a pad and pencil. And you don’t need to count everything. Laptops. Check. Beats headphones. Check. Your kids’ last five Happy Meal boxes you saved just in case. You can leave those off the list.
You can bundle pretty much any State Farm insurance product and save (see multiple line discounts below), but the big fish on State Farm’s multiple line discount menu is its auto and home insurance bundle.
I’ve kind of built up the suspense on this discount, but actually, if you look closely at the quote State Farm gave me a few paragraphs back, under the basic HO-3 rate was a special price for bundling.
That price was $855 per year, or $71.25 monthly. To put that number into perspective, that’s over $30 cheaper than the average homeowners rate in the U.S., and about $20 less than North Carolina’s lower-than-average home insurance rates.
So, in case there was any doubt, yes, you can save big by bundling with State Farm.
FYI: State Farm isn’t the only bundle-friendly homeowners provider on the market. For more A++ bundling deals, check out our guide to the top home insurance bundles of 2022.
Homeowner’s Tip: Not sure if your home is as safe as it should be. Take our quick home security safety quiz to find out.
Sometimes value is in the eye of the beholder. For home insurance, value is the quality of the coverage you get for the money you spend. Considering the nature of the investment — one you hope you’ll never have to use — homeowners are especially, and rightly, conscious of what they pay.
State Farm understands this. That’s why their HO-3 plans come with RCV for your belongings (usually extra) and building ordinance insurance (sometimes extra). Adding water backup, which can run up to $9 per month with other providers, costs only two bucks with State Farm. Ditto for extra replacement cost coverage for your home — up to $65,000.
The end result is a well-stocked, reasonably priced ($113 per month) insurance plan you can knock down significantly ($75) by bundling your auto insurance.
The only bone we have to pick with State Farm has nothing to do with its value as an insurance provider. We’d simply like to see State Farm revamp its online quote generator. (We’d also like to be able to purchase their bundles online without an agent.)
Other than that, the reigning champ of homeowners bundles is one of the sweetest deals going.
Yes and no. State Farm’s rates ($1,308 per year for a basic HO-3 policy) are among the lowest we’ve found this year. That doesn’t mean they’ll be lower than your state’s average, however, which could be anywhere between $700 and $2,600.
A lot. You could save up to $1,127 per year if you bundle your State Farm auto and home insurance. We personally saw a 35 percent savings with our bundled quote.
Yes, and it’s second in the nation in customer satisfaction, according to data analytics giant J.D. Power.
Yes. If you use the State Farm Drive Safe & Save app to track your driving habits, you could save up to 30 percent on your premium.
Yes, they do, and that’s a major perk in our book.
National Association of Insurance Commissioners. (2020). Dwelling Fire, Homeowners OwnerOccupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner’s Insurance Report: Data for 2018.
National Highway Traffic Safety Administration. (2022). Distracted Driving.
J.D Power. (2021, September 21). Home Insurers Struggle with Customer Loyalty as Boomers Flock to Rental Market, J.D. Power Finds.
Campbell, R. (2019, March). HOME ELECTRICAL FIRES. National Fire Protection Association.