State Farm Homeowners Insurance Review 2022

This insurer offers comprehensive homeowners coverage and personalized service through its agents, but very few discounts.
Apr 27, 2022

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Founded in 1922, State Farm is now the largest homeowners insurance company in the U.S. The insurance giant also sells other policies, including renters, car, life and umbrella insurance, online and through a network of more than 19,000 agents nationwide.

Best for: People who want to work closely with an agent and feel most comfortable buying insurance from a well-established company.

How we rate homeowners insurance companies

Our star ratings are based on consumer complaint data from the National Association of Insurance Commissioners; financial strength grades from AM Best; coverage and discounts available; and the overall consumer experience. See our criteria for evaluating home insurance companies.

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Our writers and editors follow strict editorial guidelines that ensure fairness and accuracy in order to help you choose the financial products that work best for you. Here is a list of our partners and here’s how we make money.

State Farm home insurance pros and cons

Pros

Cons

User-friendly website.

Lack of discounts compared to other insurers.

Agents offer personalized service.

Low customer complaint ratio.

How State Farm home insurance rates

4.0

NerdWallet rating 

State Farm homeowners insurance earned 4 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account coverage and discounts, ease of filing a claim, website transparency, financial strength, complaint data from the National Association of Insurance Commissioners and more.

State availability

State Farm sells homeowners insurance to new policyholders in Washington, D.C., and every state except Massachusetts and Rhode Island.

State Farm home insurance coverage

You can customize your homeowners policy with numerous add-ons, but below are the types of coverage that generally come standard:

Type of coverage

What it does

Pays to repair or rebuild the structure of your home.

Covers damage to unattached structures such as a shed or fence.

Pays to repair or replace personal belongings such as furniture or clothing.

Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs.

Covers legal expenses and damages if you're responsible for injuries to other people or their property.

Medical payments

Covers injuries to guests in your home, regardless of fault.

In addition to this standard coverage, State Farm offers a number of add-ons for its homeowners policies.

The “increased dwelling limit” automatically extends your replacement coverage up to 20%, as long as you’ve insured your home at least up to its estimated replacement cost. You won’t pay anything to add this to your policy.

Say State Farm estimates that your home will cost $200,000 to rebuild, so that’s how much dwelling coverage you’ve selected on your policy. If a disaster strikes your area and construction costs go up accordingly, State Farm will automatically pay up to 20% more — or a total of $240,000 — to rebuild your home.

Other add-ons that come with an extra charge include :

  • Backup of sewer or drain coverage.

  • Identity fraud, cyberattacks and cyber extortion coverage.

  • Earthquake coverage.

  • Liability coverage for those providing in-home child or adult care, and for those working as nurses.

  • Coverage for structures located outside the premises of your home.

  • Home rental coverage for homes that are rented out more than 30 nights a year.

  • Liability coverage for libel, slander or other personal injury claims.

  • Service line coverage for damaged underground utility lines.

  • Coverage to replace a damaged water heater, air conditioner or heating unit with a more energy-efficient model.

  • Coverage for theft, vandalism or broken glass if your home is left vacant more than 30 days.

  • Reimbursement for certain costs related to building codes or zoning laws.

  • Various coverage for homes under construction, including theft of building materials and liability in a temporary home.

  • Coverage for the breakdown of home systems, such as furnaces and air conditioning units.

  • Incidental business coverage for people who work from home.

  • Coverage for your portion of a loss that affects all members of a homeowners association.

  • Liability coverage for damage to other people’s property due to a waterbed.

Before opting in to any of these coverage options, be sure to read the fine print or ask your agent to talk you through any limitations and exclusions.

State Farm home insurance rates

NerdWallet compared State Farm’s average annual rates for homeowners insurance to those of four major competitors in ZIP codes across the U.S. State Farm was the cheapest option in our mini analysis, with an average annual rate of $1,529 — $255 less than the national average of $1,784 per year.

Our sample rates were calculated for 40-year-old homeowners with a $1,000 deductible, $300,000 in dwelling coverage and $300,000 in liability insurance. Your own rates will be different.

Discounts

State Farm has a limited lineup of homeowners discounts, and they vary by state. Depending on where you live, you might be able to apply these discounts to your policy:

  • Multiple line discount for bundling policies from State Farm.

  • Protective device discount for installing home monitoring systems, such as burglar or smoke alarms.

  • Discount if your roof is made of specific impact-resistant materials, like Class 4 shingles.

Consumer complaints

State Farm had fewer than the expected number of complaints to state regulators relative to its size for home insurance, according to three years’ worth of data from the National Association of Insurance Commissioners.

State Farm home insurance consumer experience

Website: State Farm’s website is intuitive and user-friendly, allowing you to get a quote or file a claim online right from the homepage. You can also track your State Farm homeowners claim online. The company’s “find an agent” tool is equally easy to use if you need to talk through an issue with a live person.

One nice feature is the ability to quickly access certain tasks — including paying your bill, enrolling in autopay and getting your ID cards — without having to log in with a password.

There’s plenty of useful information for homeowners on the State Farm site, though it sometimes takes a little scrolling to find. Keep an eye out for the Simple Insights section of the site for in-depth tips.

App: The State Farm mobile app lets you view policy information, file a claim and make payments in a variety of ways, including with Apple or Android Pay. If you use State Farm’s banking or investing services, you can also access those on the app.

Homeowners insurance buying guide

You can get home insurance quotes online, over the phone or through an agent. But before you start, take the following steps:

  1. Determine how much coverage you need. Is a standard policy sufficient, or do you want to add extra insurance for situations like identity theft or sewer backups? Check whether each company you’re considering has the options you need.

  2. Take inventory. To ensure you have sufficient personal property coverage, take stock of your belongings. Include all furniture, electronic devices, clothing, jewelry and household items. How much would it cost you to replace them? This total is the minimum amount of personal property insurance you should have.

  3. Make a fair comparison. When evaluating rates, make sure each insurer is offering the same limits and deductibles.

  4. Check consumer complaints. Although it may seem tempting simply to choose the cheapest option, look at how many consumer complaints each insurer has before choosing a policy. Poor customer service could have a significant impact on your experience if you ever need to file a claim.

How to file a homeowners insurance claim

File as soon as it’s safe. The sooner you report a theft or damage to your home, the sooner your insurer can assign an adjuster and start working on paying out your claim. Some companies let you file claims online or through their app, while in other cases you may have to call your agent or insurer instead. Have your policy number handy.

Document the damage. Bolster your claim by taking photos or video of all damage. If something was stolen, report it to the police before you contact your insurance company. Your insurer may ask for a copy of their report.

Prevent further damage. After you’ve taken pictures of everything broken or destroyed, take steps to prevent additional damage. For example, you can put a tarp over a leaky roof or blown-out window. Keep receipts for any supplies you buy, as your insurer may reimburse you later.

For more information, see how to file a homeowners insurance claim.

Other home insurance companies to consider

If State Farm isn’t quite the right fit, look at these similar homeowners insurance companies:

Frequently asked questions
What other insurance does State Farm offer?

State Farm sells a wide range of coverage options, including car, umbrella, life, renters, boat, business and other insurance. The company also offers checking, savings and CD accounts, traditional and Roth individual retirement accounts, credit cards, home loans, annuities and other financial products.

Does State Farm insure homes with pit bulls?

State Farm does not have restrictions on which dog breeds it will insure. Instead, it looks at each individual dog’s bite history to determine coverage. Learn more about dog bites and homeowners insurance.

Does State Farm insure mobile homes?

Yes, State Farm offers manufactured home insurance that covers the building structure, your belongings and personal liability. To learn more about your options, see NerdWallet’s guide to mobile home insurance.

Does State Farm home insurance cover mold?

State Farm homeowners policies generally do not cover mold-related damage or losses, except in those states where some limited mold coverage is required.

Methodology

Homeowners insurance ratings methodology

NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverages, discounts, online experience and more. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Insurer complaints methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2020. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

Homeowners insurance rates methodology

NerdWallet averaged rates for 40-year-old homeowners from a variety of insurance companies in every ZIP code across all 50 states and Washington, D.C. Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1997. They had a $1,000 deductible and the following coverage limits:

  • $300,000 in dwelling coverage.

  • $30,000 in other structures coverage.

  • $150,000 in personal property coverage.

  • $60,000 in loss of use coverage.

  • $300,000 in liability coverage.

  • $1,000 in medical payments coverage.

These are sample rates generated through Quadrant Information Services. Your own rates will be different.

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