Paul Sanchez
State Farm is the largest home insurance provider in the US, and it writes policies in Louisiana. However, State Farm has been involved in scandals in the state, including allegations that it willfully and knowingly denied valid claims following Hurricane Katrina. In 2023, Louisiana was facing a homeowners insurance crisis, with many providers going out of business or leaving the state, leaving 120,000 policyholders without coverage. In response, the state legislature approved a $45 million incentive program to encourage insurance companies to write new home policies.
| Characteristics | Values |
|---|---|
| Best homeowners insurance in Louisiana | USAA, Allstate, State Farm and The Hanover |
| Average annual rate | $1,274 |
| Next cheapest company | Progressive at $1,865 |
| Average rate for home insurance in Louisiana | $4,033 a year |
| Average cost of State Farm home insurance in Louisiana | $2,197 per year |
| State Farm's financial stability rating | Industry-best |
| State Farm's NAIC Complaint Index rating | Below average |
| State Farm's policy add-ons | Personal articles coverage, Farm and ranch insurance, Identity restoration coverage |
| State Farm's policy on flood damage coverage | Unclear |
| State Farm's policy on temporary living expenses | Refuses to cover |
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What You'll Learn
State Farm is the largest home insurance provider in the US
State Farm is the leading property and casualty insurer in 35 out of 50 states. The company has an A++ rating from AM Best, the highest possible, and is ranked 39th in the 2024 Fortune 500 list of American companies by revenue. State Farm relies on exclusive agents, also known as captive agents, to sell its insurance products. These agents can only sell State Farm insurance and are authorised to sell only State Farm products.
State Farm is a popular option for those seeking to bundle multiple policies, as the company offers auto, umbrella, and life insurance, in addition to home insurance. While the company provides a range of add-ons and endorsements, its list of policy add-ons is considered shorter than some of its competitors. State Farm also offers banking products through US Bank, including checking and savings accounts, certificates of deposit, and money market accounts.
Despite being the largest home insurance provider in the US, State Farm has faced criticism and legal action from customers regarding claim denials, particularly in the aftermath of natural disasters like hurricanes. There have been allegations of the company employing delay-and-deny tactics and prioritising its financial bottom line over customers' needs. However, State Farm continues to be a prominent and trusted insurance provider for millions of Americans, offering competitive rates and comprehensive coverage options.
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State Farm offers the cheapest home insurance in Louisiana
State Farm is the largest home insurance provider in the United States by market share. Despite this, its advertised list of policy add-ons is on the shorter side. State Farm offers auto, umbrella, and life insurance lines, as well as banking products through US Bank.
State Farm has the cheapest home insurance for most homeowners in Louisiana, with an average annual rate of $1,274. For comparison, the average rate for home insurance in Louisiana is $4,033 a year. Progressive is the second-cheapest option at $1,865 a year. State Farm also has a great overall satisfaction rating with property claims.
State Farm's home insurance is highly rated due to its statewide availability, large selection of policy options for most home types, high customer service marks, and industry-best financial stability ratings. State Farm continues to offer relatively affordable and highly-rated home insurance to Louisiana homeowners, even in areas prone to wildfires and hurricanes. They also offer flood, wildfire, and earthquake protection, which is rare among competitors.
However, a potential downside to State Farm is its below-average NAIC Complaint Index rating. State Farm has also been involved in scandals, such as the one following Hurricane Katrina, where they were found guilty of defrauding the US government by changing damage reports to avoid paying homeowners the money they needed to rebuild.
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State Farm's customer satisfaction rating is below average
State Farm is the largest home insurance provider in the US by market share, and it also writes homeowners insurance in Louisiana. However, the company has received criticism for its handling of homeowner insurance claims in the state. In particular, State Farm has been accused of using delay-and-deny tactics and refusing to cover temporary living expenses for policyholders evacuated during Hurricane Ida in 2021.
In terms of customer satisfaction, State Farm has received mixed reviews. WalletHub's editors gave the company a rating of 3.8/5 based on customer reviews, sample insurance quotes, and ratings from organizations such as AM Best, which gave State Farm an A++ rating. State Farm's customers have praised the company's customer service and competitive pricing. However, the company's NAIC rating of 1.35 indicates that it has received more complaints than the average car insurance company.
According to a NerdWallet survey conducted in 2024, State Farm received an overall satisfaction score of 79 out of 100 from its customers, which is equal to the average score among the seven insurers included in the survey. The survey also found that State Farm had fewer than the expected number of complaints about auto insurance to state regulators relative to its size. Additionally, State Farm received an above-average customer satisfaction rating for buying auto insurance among large insurers, according to J.D. Power.
On the other hand, some customers have expressed frustration with State Farm's claims handling process. For example, one customer reported that the company offered to pay significantly less than their dealer's estimate for car insurance repairs. Another customer shared that their rate increased by $70 in a month for no apparent reason.
Overall, while State Farm has received recognition for its competitive pricing, ease of use, and breadth of coverage and discount options, its customer satisfaction rating is below average when compared to other insurers. The company has been criticized for its handling of claims, particularly in the context of homeowner insurance in Louisiana.
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State Farm offers flood, wildfire, and earthquake protection
State Farm is the largest home insurance provider in the country by market share, and it is writing some of the best homeowners insurance policies in Louisiana. While State Farm does not explicitly mention flood, wildfire, or earthquake protection in Louisiana, it does offer these types of coverage in other states.
State Farm offers flood insurance in some states, and it encourages homeowners and renters to consider purchasing this coverage, as floods are the most common and expensive natural disasters in the United States. Flood insurance is typically a separate policy from homeowners insurance and can help protect against financial devastation caused by flooding. To obtain flood insurance from State Farm, customers can contact their State Farm agent to see if they participate in the National Flood Insurance Program (NFIP) provider program.
State Farm has demonstrated its commitment to supporting customers impacted by wildfires in California. After the devastating 2025 wildfires in Los Angeles, State Farm increased advance contents payments to customers with total losses from 50% to 65% of their contents limit without requiring an inventory. The company also paused homeowners non-renewals in Los Angeles County, allowing customers with pended non-renewals to renew their policies.
State Farm does not specify whether it offers earthquake insurance in Louisiana, but it does provide information about earthquake insurance on its website. Earthquake insurance is typically offered as a separate option to a standard homeowners policy for an additional premium. State Farm encourages customers to contact their insurance agent to learn more about earthquake insurance and whether it is available in their area.
In addition to the above coverages, State Farm offers a range of policy add-ons and comprehensive insurance options, including auto, umbrella, and life insurance. Louisiana homeowners can also add personal articles coverage to raise the limits on valuable items, farm and ranch insurance, and identity restoration coverage.
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State Farm was found guilty of defrauding the US government
State Farm is the largest home insurance provider in the US by market share, and it also writes homeowners insurance in Louisiana. However, the company has been involved in scandals and accused of focusing on its financial bottom line.
In addition to the Hurricane Katrina scandal, State Farm has also been accused of denying or underpaying claims following Hurricane Ida in 2021. The company has been criticized for refusing to cover temporary living expenses for policyholders who were evacuated during the hurricane. State Farm is not the only company at the center of these disputes, and it is important to note that finding homeowners insurance in Louisiana can be challenging due to the state's high risk of natural disasters.
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Frequently asked questions
Yes, State Farm is writing homeowners insurance in Louisiana. It is the largest home insurance provider in the country by market share and has the cheapest average home insurance in Louisiana, at $1,274 per year.
State Farm offers a large selection of policy options for most home types, high customer service marks, and industry-best financial stability ratings. It also offers flood, wildfire, and earthquake protection, which are not offered by many competitors.
State Farm has a below-average NAIC Complaint Index rating. There have also been reports of State Farm denying or underpaying claims following natural disasters like hurricanes.
