State Farm Homeowners Insurance Review 2022

Heading-spinning auto and home insurance bundles may be all State Farm needs to win us over.

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SecureScore™: 9.3 / 10 This rating is derived from our editorial team's research, hands-on product testing, and customer surveys.
Rob Gabriele https://www.safehome.org/author/rob-gabriele/
9.3 SecureScore™ How We Review
Affordability
9.4
Coverage
9.4
Customer Service
9.2
Online Quote
8.7
Discounts
8.8
Bundles
10.0
SecureScore™
9.3
How We Review

State Farm Overview

What’s cheap, friendly, and almost everywhere you go? If you think the answer is State Farm homeowners insurance, you’d be right.

I spent the last few weeks diving deep into this 99-year-old behemoth’s home insurance policies. I even simulated insuring a few actual properties with State Farm, comparing rates against national averages.

What I found wasn’t a surprise. State Farm is cheap with top-rated customer service. But I also uncovered some hard-to-believe bundles and a robust menu of basic protections. Of course, it isn’t the perfect home insurer (the online quote builder could sure use a fresh coat of paint), but it checked many of my boxes. Stay with me for the whole story.

Fun Fact: State Farm founder G.J. Mecherle was a 33rd-degree freemason. He kept a standing bell (which rang whenever a new life insurance policy was sold), a bust of Abraham Lincoln, and his masonic belt on display in his office.

PROS
  • Heavy discounts on multi-product bundles
  • Replacement cost value possessions coverage
  • Fast online quotes and claims
  • 19,000 agents nationwide
  • Top-rated for customer satisfaction
  • Free three-year Ting subscription

CONS
  • Can’t purchase bundles online
  • Fewer discounts than some close competitors
  • Not available in Massachusetts or Rhode Island

State Farm’s online quote generator isn’t a marvel of design, but it’s quick and easy.

State Farm’s online quote generator isn’t a marvel of design, but it’s quick and easy.

State Farm Basic and Extra Homeowners Coverage

Just a quick note. State Farm’s website doesn’t do justice to the coverage you’ll actually find when you build your quote. When it was time to get down to the nitty-gritty, I discovered plenty of unexpected protections. Here’s a quick overview.

Standard Coverage

  • Dwelling: My property coverage isn’t my home’s market value. It’s the amount I’m telling State Farm I’ll need to rebuild my house in the event of a covered peril. (Theft, fires, and storms are the big ones.) If you feel State Farm’s estimate isn’t enough, you can always add extra dwelling coverage to offset inflation and/or increases in building costs.
  • Other structures: State Farm insured my garage, and any other structures on my property, at 10 percent of my dwelling coverage. That’s standard. But I couldn’t tweak this amount like I could when I was customizing my Nationwide homeowners coverage. Not a big deal for me personally, as $24,000 was plenty to cover my garage. If you’ve got a fancier setup (garage, gazebo, shed, etc.), you may want to keep this in mind when deciding on extra dwelling coverage.
  • Personal property (replacement cost value): State Farm’s replacement cost value coverage was music to my ears. If there’s ever a choice between covering your stuff for its actual cash value (ACV) or its replacement cost value (RCV), I recommend giving RCV some serious thought. It’s the only way your settlement payout will be enough for you to buy back your stuff new.
  • Personal liability: My State Farm personal liability coverage works in two directions. It protects my family if a guest gets injured on our property and if the fam causes damage to anyone else’s property. The $100,000 that came with my State Farm quote was a little low. Raising it to the standard $300,000 nudged my quote up by only a buck.
  • Medical payments: Having $1,000 of coverage for my guests’ medical bills is enough for me (and for most everybody). If your situation is different, you can always increase this amount.
  • Loss of use: If I end up spending more than my normal cost of living to stay at a hotel while my home’s being fixed, State Farm’s loss of use coverage will kick in and pay me the difference — up to 20 percent of my property coverage.
  • Valuables (jewelry and furs): If I’m being honest, I was a bigger fan of the 2.0 version of valuables coverage I found when I reviewed Lemonade homeowners insurance. Cameras, bikes, and fine art!
  • Business property: State Farm’s business property coverage isn’t for my office, not even if it happens to be physically inside my home. It’s for equipment I use for work; i.e., my desktop, laptop, hard drive, and speakers. The default limit is $2,500 (for equipment in my house), but I can increase it to $5,000.
  • Building ordinance: Even if you’ve got the extra dwelling coverage to fix your house at today’s prices, you’ll still want to build up to code. State Farm’s building ordinance protection gave me 10 percent extra to do that.

Homeowner’s Tip: It pays to get your dwelling coverage right because that’s the amount you’ll get to rebuild your house in the event of disaster. If you need a little help, check out the 360Value Tool® on the State Farm website.

State Farm’s 360Value Tool helped me figure out the right amount of dwelling coverage.

State Farm’s 360Value Tool helped me figure out the right amount of dwelling coverage.

Extra Coverage

  • Water back-up: Repairs for busted sump pumps or clogged sewers can easily run into the thousands of dollars. I was pleased to see that $5,000 worth of backup insurance pushed my State Farm quote up by only $2 per month. Backup insurance can run $9 per month and higher.
  • Earthquake: Here’s a sobering fact: 57,508 earthquakes have struck over the past 365 days.1 And not all of those tremors came from fault lines. Fracking and mining can cause enough shaking to damage our homes and possessions. State Farm’s earthquake coverage came with a minimum 5 percent deductible. It also drove my quote up by $20 per month.
  • Identity restoration: It’s nice to see that State Farm is taking family identity theft protection seriously. At $25 yearly, State Farm’s Cyber Event, Identity Restoration, and Fraud Loss coverage (CEIDR) is definitely affordable. Beyond that, the details are a little murky. Is State Farm providing the identity theft monitoring tools, or are they collaborating with a third-party service like Progressive does with IDnotify? I’d like to know. For more on Progressive’s identity theft monitoring options, by the way, check out my Progressive homeowners plans and pricing guide.
  • Special computer coverage: Over the next few years, expect to see more variations of computer and portable devices coverage, both as extra endorsements and separate insurance. Unusually, State Farm’s special computer coverage ($1 per year) extends to operating systems and networks, which, again, leaves me with more questions than answers.

Did You Know: According to FEMA, California has 90 percent of the earthquakes in the U.S., and yet only 10 percent of California’s residents have homeowners policies with earthquake coverage.2

Getting a Quote With State Farm

My State Farm quote was highly customizable, if a little old-fashioned-looking.

My State Farm quote was highly customizable, if a little old-fashioned-looking.

At first sight, State Farm’s online quote builder looked more like a USPS tracking form than some of the fancier home insurance widgets I’ve played with. But it gets the job done. Once State Farm pulled up my “virtual” property, I reported on the security I had in place and filled in any gaps (major renovations or upgrades), and out popped my quote.

All of that was par for the course.

Then State Farm threw me a curveball: a whopping 40 percent discount for bundling my home and auto insurance. How is that even possible? Let’s break it down.

State Farm Homeowners Insurance Rates

No matter how many hours you spend studying home insurance premiums, you’ll never arrive at a predictive rate that makes sense for even a whole state.

For my quote, I checked out a few properties in the Greensboro and Charlotte areas of North Carolina; i.e., inland enough not to be considered a high risk for wild weather.

I scoped a variety of price points, but the property I’m quoting below is an older-than-average house (1969) with a market value slightly over the national median ($257,000). I did check off some major overhauls (roof, wiring, and plumbing), but those hardly impacted my State Farm quote.

FYI: The safer our homes are, the more we save on insurance. So, whether you’re a first-time homeowner or you’re looking to switch providers, now is the time to get your home security up to snuff. Check out our complete guide to home security systems to get started.

Cost

State Farm offered me 40 percent off my premium for bundling auto and homeowners insurance.

State Farm offered me 40 percent off my premium for bundling auto and homeowners insurance.

My $109.66 State Farm quote was actually higher than average for North Carolina. According to the National Association of Insurance Commissioners (NAIC), the median HO-3 insurance premium for North Carolina homes in the $200,000-$290,000 range was $89.25 in 2018.3

That may be true, except, one, home insurance premiums have gone up since 2018. And, two, that was before I figured in my State Farm auto bundle, which could potentially drop my premium to $71 monthly. If that still isn’t hitting home, State Farm’s bundled quote was even cheaper than my cheapest Lemonade quote — something I never expected to see.

Here’s a complete breakdown of the HO-3 package that State Farm quoted me.

Type of coverage Amount of coverage
Dwelling $244,000
Other structures $24,400
Belongings $170,800
Loss of use $48,800
Personal liability $100,000
Medical payments to others $1,000 per person
Dwelling replacement cost No
Valuables $1,500
Business property $2,500
Building ordinance 10%*
Water backup No
Earthquake No
Computer coverage No
ID restoration No
Deductible $1,000
Monthly cost $109.66
Monthly cost with auto bundle $71.25
Yearly cost $1316
Yearly cost with auto bundle $855

* Up to 10% of my property coverage to offset future costs for rebuilding to code

Homeowner’s Tip: There are eight types of homeowners insurance: HO-1 through HO-8. The most common type of home insurance policy today is an HO-3, which covers property and possessions against most common perils. Roughly 80% of homeowners policies in the U.S. are HO-3.

Estimated Monthly Rate Based on Home Value

It goes without saying that the home you insure will be different from mine. As long as you keep that in mind, the table below will give you a ballpark idea of what to expect from State Farm for standard HO-3 coverage for a home with standard fixtures and home security; i.e., no earthquake, water backup, or flood insurance.

Home value Estimated monthly rate*
$250,000 $109.66
$300,000 $119.41
$350,000 $129.16
$400,000 $138.91
$450,000 $148.66
$500,000 $158.41

* These rates are for home insurance only, not for State Farm auto and homeowners bundles.

State Farm Customer Experience and Claims

The past two years have been a doozy for all of us, insurance companies included. All things considered, State Farm isn’t doing badly in the customer complaints department. Yes, they racked up a slightly higher than average score (1.63) on the NAIC’s national complaint index. But we’ve seen other popular insurance providers with substantially higher complaint levels.

I’d say a better indicator of the State Farm experience is J.D. Power’s 2021 overall customer satisfaction study. State Farm scores fourth there (out of a packed field of 20). State Farm also earned a solid score in digital experience thanks to its handy mobile app, which lets customers file claims in minutes.

Or you can take it directly from a lifetime State Farm customer whose property was leveled by a tornado back in 2017. An agent was on her property in less than two hours, she said. And an hour after that, she had her settlement check.

FYI: A.M. Best awarded State Farm an A++ financial strength rating in 2021, the highest rating they give.

Discounts

  • Multiple lines: This is just another way of saying “bundle.” Typically, insurance companies will shave 4 to 10 percent off our total bill when we double up. As we saw above, State Farm offers a lot more than that.
  • Home security insurance: This is a win-win discount. Outfitting my home with a home monitoring system (fire, smoke, or burglar alarm; preferably all three) makes it safer. Safer homes are less risky for insurance providers, so they knock dollars off our premiums. Not sure how safe your home is? Check out our home security checklist.
  • Roofing: This won’t influence my settlement in the event of damage. State Farm has me covered there. But if I use impact-resistant materials like hail-resistant shingles, State Farm may lower my premium.
  • Prior claims: State Farm trimmed a chunk off my quote based on my prior claims history. If you’re claims-free, expect to get a discount, too.
  • Ting: Ting isn’t technically a discount. It’s a smart sensor that detects faults in household electrical networks, the kinds of malfunctions that lead to fires. If you’ve got a State Farm homeowners policy, a smartphone, and Wi-Fi, you get three years of Ting for free.

Did You Know: Hail can grow to the size of a softball by the time it smacks our roofs.4 And it can strike at speeds up to 90 miles per hour (yikes!). If you ever wondered why companies like State Farm offer discounts for roofs that can take that kind of a beating, now you know.

State Farm Homeowner Policies Availability by State

State Farm may be the nation’s largest homeowners insurance provider,5 but they don’t write insurance in Rhode Island or Massachusetts. This isn’t random or personal. Until 2008, Massachusetts regulated insurance rates, which kept a number of providers out of the local market. State Farm still hasn’t ventured in.

If you happen to live in either state, it isn’t the end of the world. While we really like State Farm — it’s one of our top home insurance providers of the year — there are plenty of other excellent alternatives.

State Farm Versus the Competition

Provider Lemonade Liberty Mutual Nationwide Progressive State Farm
Online quote Yes Yes Yes Yes Yes
Our score 9.4 8.6 9.1 8.7 9.2
Availability 22 states 50 states 44 states Most states 48 states
BBB rating Not rated yet B A+ A- A-
Years in business 6 110 95 85 99
Customer satisfaction A B- B B A-
Discounts Limited Yes Yes Yes Yes
Bundling Yes Yes Yes Yes Yes
Mobile app Yes Yes Yes Yes Yes

Where State Farm Hits the Mark

State Farm’s HO-3 policies come with an unusually long list of standard protections. RCV coverage and building ordinance insurance, for instance, aren’t extra endorsements with State Farm. While the monthly rate State Farm quoted me ($109) was a little higher than the local average, once I bundled in my auto insurance, the savings were head-spinning: $461 off my yearly premium.

Where State Farm Falls Short

When I’m exploring a new insurance provider online, I really want to fall in love with their website. State Farm has a good one. It’s well-stocked, easy to navigate, and generally right on target. If there were two things I could change about that experience, though, it would be their clunky quote builder and the lack of information about their identity theft protection service.

Another gripe is that I’d like to be able to purchase a policy on the spot without having to connect with an agent first.

Other Policies Offered by State Farm

State Farm’s Drive Safe & Save™ program calculates my auto premium based on my actual driving behavior.

State Farm’s Drive Safe & Save™ program calculates my auto premium based on my actual driving behavior.

Auto

State Farm is probably best known for its auto insurance, which offers homeowners who bundle some pretty great perks besides lower premiums, such as their Drive Safe & Save program, where the safer you drive, the less you pay.

Life

State Farm writes term, whole, and universal life policies. Because life policies are longer-term investments that may affect my entire family, if I were shopping for life insurance, my first stop would be State Farm’s life insurance calculator.

Health

State Farm writes individual health policies and supplemental health insurance, which would cover me for unexpected medical expenses like outpatient surgery, copays and coinsurance, and even child care during recovery.

Disability

Disability insurance would help cover major expenses, like my mortgage and car loan, if I can’t work because I’m sick or injured. State Farm offers special discounts for what they call Triangle of Protection bundles: life, disability, and home.

Pet

State Farm partners with pet insurance giant Trupanion. One benefit of working with Trupanion, besides the fact that they’re available 24/7 and would cover 90 percent of my bills, is that they pay my vet bills directly in standard cases so that I can avoid the rigamarole of filing a claim.

Did You Know: Over 25 percent of the population under the age of 20 will become disabled by retirement age.6

Our Final Verdict

Even if you don’t get as much of a kick out of online insurance quotes as I do, seeing your homeowners quote magically drop from $1,131 to $755 right before your eyes is pretty spectacular. Granted, my State Farm quote was basic, but basic for State Farm still includes a lengthy menu of protections you don’t see every day with standard HO-3 policies.

I think State Farm could definitely improve the online quote experience and cut agents out of that process. As a VPN geek, I’d also like to see more specs on their computer network insurance (and their identity theft monitoring service). Other than that, State Farm homeowners insurance is a pretty hard act to follow.

FAQs

How can I file a claim with State Farm?

You can file a claim online via the State Farm website or app (it takes about 10 minutes). Or you can reach out directly to your agent.

Is State Farm home insurance cheap?

According to our analysis, State Farm homeowners insurance was a bit more expensive than average. However, when we bundled our home insurance with a State Farm auto policy, our rate dropped by 40 percent.

Is State Farm insurance available everywhere?

State Farm writes homeowners policies in every state except Massachusetts and Rhode Island.

Can I buy a State Farm home insurance policy online?

Yes, you can purchase a State Farm policy online. But for auto and homeowners bundles, you may need to speak to an agent first.

Does State Farm offer home insurance discounts?

Yes, besides discounts for bundling products, State Farm offers roof, home security, and claims-free discounts.

Top
Citations
SafeHome.org only uses high-quality sources to support the facts within our articles. Read our editorial guidelines to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. Earthquake Track. (2022). Today's Biggest Earthquakes.
    https://earthquaketrack.com/

  2. FEMA. (2021, September 9). Earthquake Insurance.
    https://www.fema.gov/emergency-managers/risk-management/earthquake/insurance

  3. National Association of Insurance Commissioners. (2020). Dwelling Fire, Homeowners OwnerOccupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner’s Insurance Report: Data for 2018.
    https://content.naic.org/sites/default/files/publication-hmr-zu-homeowners-report.pdf

  4. Henson, B. (2018, August 16). U.S. Hail Damage Could Hit an Eleventh Straight Year Above $10 Billion. Weather Underground.
    https://www.wunderground.com/cat6/US-Hail-Damage-Could-Hit-Eleventh-Straight-Year-Above-10-Billion

  5. Javier, R. (2021, September 10). Homeowners insurers log record high in premiums written during Q2'21. S&P Global.
    https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/homeowners-insurers-log-record-high-in-premiums-written-during-q2-21-66501505

  6. Social Security. (2022). The Faces and Facts of Disability.
    https://www.ssa.gov/disabilityfacts/facts.html

Written By
Rob Gabriele
Managing Editor & Home Security Expert

As Managing Editor for SafeHome.org, Rob Gabriele has written and edited over 1,000 articles in home security. His expertise is in smart home automation and home protection with thousands of hours of testing and research under his belt. Formerly a reporter and producer for the USAToday network, Rob has been a writer and editor for over 10 years. He holds a Master’s of Science with an emphasis on writing from the University of Montana, and he currently lives in the Reno/Tahoe area of Nevada.