Haris Ashley
State Farm is the largest homeowners insurance company in the US, offering policies in 47 states and Washington, D.C. The company has a range of coverage options, including property damage due to acts of nature, fire, theft, and vandalism, as well as damage from explosions, smoke, or water discharge. State Farm also provides coverage for personal belongings and additional living expenses. With affordable premiums, solid coverage options, and financial stability, State Farm is a top choice for many homeowners. However, the company has received mixed reviews, with some customers reporting issues with claim handling and unexpected rate increases.
| Characteristics | Values |
|---|---|
| Customer satisfaction | High per J.D. Power |
| Customer loyalty | Average or below-average |
| Claims handling | Average |
| Customer service | Above average |
| Availability | 47 states and Washington, D.C. |
| Average monthly premium | $170.89 |
| Average annual rate | $2,185 |
| Inflation coverage | Automatically adjusts coverage to account for inflation |
| Discounts | Fewer than other companies |
| Coverage | Comprehensive |
| Add-ons | Numerous |
| Coverage for structure of the home | Generous |
| Endorsement options | Not listed on the website |
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What You'll Learn
State Farm's customer service
State Farm is the largest homeowners insurance company in the US, offering policies in 47 states and Washington, D.C. (although not in California, Massachusetts, or Rhode Island). The company has a vast network of agents who provide personalized service to policyholders.
State Farm has received high customer satisfaction scores from J.D. Power, and its customer service has been rated above average in consumer surveys. The company's commitment to quality service is reflected in its customer feedback. Close to 78% of consumers surveyed claimed they were satisfied or completely satisfied with the value of their State Farm home insurance policy.
State Farm's average annual rate for homeowners insurance is $2,185, slightly above the national average of $2,110 per year. However, State Farm offers ways to help customers save on their premiums, such as discounts for having certain home security devices, using specific protective roofing materials, and bundling multiple policies with the company. State Farm's average liability insurance rate is 23% cheaper than the national average, and its average rate for full coverage insurance is 25% cheaper.
However, some customers have expressed dissatisfaction with State Farm's customer service. Some have reported that the company raises rates without tangible reasons and that its agents can be difficult to reach. Others have criticized State Farm for aggressively trimming its pool of policyholders in high-risk areas and refusing to renew policies after claims are filed. There are also complaints about State Farm's handling of claims, with reports of lengthy delays in the investigation process and difficulty in getting responses from adjusters.
Overall, State Farm's customer service for homeowners insurance appears to be a mixed bag. While the company has received positive reviews and high satisfaction scores from some customers, there are also negative reports of rate increases, difficulty reaching agents, and challenges with claims handling.
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Affordability and financial stability
State Farm is a good option for those seeking affordable insurance from one of the largest insurance companies in the US. Its home insurance rates are among the cheapest available, with sample premiums averaging $170.89 per month for $300,000 dwelling and $100,000 personal liability coverage. State Farm's average annual rate was $2,185, slightly above the national average of $2,110 per year. However, it's important to note that home insurance rates can vary depending on location, home value, coverage selections, and other factors.
State Farm offers a good selection of coverage options and discount opportunities. Their policies include extra coverage for the structure of your home, which some other insurers charge extra for. They also offer inflation coverage, which automatically adjusts your coverage annually to account for inflation. This type of coverage typically incurs an additional cost with other insurers, but it is standard at State Farm.
State Farm provides several ways to save on premiums, including discounts for having certain home security devices, using specific protective roofing materials, and bundling multiple policies with the company. Their liability insurance rates are 23% cheaper than the national average, and their full-coverage insurance rates are 25% cheaper. State Farm also has the cheapest car insurance rates for teen drivers among large insurance companies.
However, it's worth noting that State Farm advertises fewer discounts than some of its competitors, and some customers have expressed frustration with unexpected rate increases. Additionally, State Farm is not currently writing new policies in California, Massachusetts, or Rhode Island, and there may be variations in coverage and discounts depending on the state.
Overall, State Farm is a financially stable company with a vast network of agents, allowing policyholders to benefit from personalized service. Their commitment to quality service is reflected in their above-average rating for customer satisfaction. While they may not offer the most extensive range of discounts, their affordable premiums, solid coverage options, and state availability make them a strong contender, especially for budget-conscious homeowners.
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Discounts and coverage options
State Farm offers comprehensive homeowners coverage and personalized service through its agents. It is the largest homeowners insurance company in the U.S. and is available in 47 states and Washington, D.C. (although not in California, Massachusetts, or Rhode Island).
State Farm advertises fewer discounts than some other insurers, but it still provides ways to save on your premium. Available discounts include those for having certain home security devices, using specific protective roofing materials, and bundling multiple policies with the company.
State Farm's average annual rate for homeowners insurance is $2,185, slightly above the national average of $2,110 per year. However, State Farm may still be a good option for those seeking inexpensive coverage, as its sample premiums average $170.89 per month.
State Farm offers a solid list of coverage options, including dwelling, personal property, liability, and additional living expense coverage. It also includes extended replacement coverage for free, whereas some other insurers charge extra for this. State Farm's personal articles coverage adds financial protection for items like jewelry, keepsakes, equipment, and medical devices that might not otherwise be fully covered.
State Farm also offers inflation coverage, which automatically adjusts your coverage annually to account for inflation. While this coverage typically costs extra with other insurers, it is standard at State Farm.
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Customer satisfaction and complaints
State Farm has received mixed reviews from its customers. On the one hand, it has been praised for its affordable premiums, solid coverage options, state availability, and financial stability. Close to 78% of consumers surveyed claimed they were satisfied or completely satisfied with the value of their State Farm home insurance policy. State Farm also scored 4.2 out of 5 for claims handling, which is the average company score in one survey. It also has above-average ratings for customer service in a consumer survey.
However, some customers have expressed dissatisfaction with the company, particularly regarding claim handling and customer service. Some customers have reported that State Farm refused to pay or paid minimal amounts on claims, and that the company is difficult to deal with during the claims process, with one customer stating that State Farm "nickel and dime[s] every part of a repair." Others have noted that State Farm does not offer as many discounts as its competitors, and that its rates can be higher than those of other companies. Additionally, State Farm has been known to increase rates without apparent reason and has been accused of being rude and impolite to customers who inquire about these increases.
State Farm has also been criticised for dropping customers after they have made multiple claims, even if the claims are not the customer's fault. This has led to some customers feeling betrayed and disappointed, especially after being loyal customers for many years.
Overall, while State Farm has received generally positive reviews for customer satisfaction, there are also a significant number of complaints, particularly regarding claims handling and customer service.
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State Farm's availability
State Farm is the largest homeowners insurance company in the U.S. and is available in 47 states and Washington, D.C. However, it is not currently writing new policies in California, Massachusetts, or Rhode Island.
State Farm offers comprehensive homeowners coverage and personalized service through its vast network of local agents. Its rates are affordable, and it has solid coverage options, financial stability, and a lengthy list of coverage options.
State Farm's average annual rate for homeowners insurance is $2,185, slightly above the national average of $2,110 per year. However, its average liability insurance rate is 23% cheaper than the national average of $64 per month, and its average rate for full coverage insurance is 25% cheaper than the national average of $164 per month.
State Farm's homeowners insurance policies generally cover property damage due to acts of nature, fire, theft, and vandalism, as well as damage from other causes, like explosions, smoke, or accidental discharge of water from the plumbing system. They also cover damaged or stolen furniture, electronics, jewelry, and firearms.
State Farm offers several ways to protect your property, including standard coverages and additional coverages that vary by policy and state. Inflation coverage, which automatically adjusts your coverage annually to account for inflation, is standard at State Farm but typically costs extra with other insurers.
State Farm advertises fewer discounts than some other insurers, but there are still ways to save on your premium. Available discounts include those for having certain home security devices, using specific protective roofing materials, and bundling multiple policies with the company.
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Frequently asked questions
State Farm is the largest homeowners insurance company in the U.S. and is known for its affordable premiums, solid coverage options, and financial stability. It has high customer satisfaction scores and is rated 4.5 out of 5 stars for overall performance. However, some customers have complained about its handling of claims, and it has fewer advertised discounts than other companies.
State Farm homeowners insurance generally covers property damage due to acts of nature (except floods, earthquakes, and other natural disasters), fire, theft, and vandalism. It also covers damage from explosions, smoke, or accidental discharge of water from the plumbing system. Additionally, it covers damaged or stolen furniture, electronics, jewelry, and firearms.
The average annual rate for State Farm homeowners insurance is $2,185, slightly above the national average of $2,110 per year. However, State Farm customers pay an average of $2,201 per year for $300,000 in dwelling coverage, which is lower than the national average of $2,466 per year for the same coverage. Monthly premiums for $300,000 dwelling coverage and $100,000 personal liability coverage average $170.89.
State Farm writes policies in 47 states plus the District of Columbia. It does not currently offer new policies in California, Massachusetts, or Rhode Island.
State Farm offers limited discounts on homeowners insurance, and the availability of these discounts may vary by state. Some possible discounts include bundling policies, installing home monitoring systems or specific roofing materials, and having certain wind mitigation features.
