State Farm Homeowners Insurance Review 2023
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Coverage options
Discounts
NAIC complaints
State Farm
Coverage options
Discounts
NAIC complaints
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 19,000 agents nationwide.
State Farm home insurance star rating
State Farm homeowners insurance earned 5 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.
Based on this rating, State Farm is among NerdWallet's Best Home Insurance Companies for 2023.
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. |
For more details, see What Does Homeowners Insurance Cover?
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 dwelling 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 $250,000 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 could pay up to 20% more — or a total of $300,000 — to rebuild your home.
Other add-ons that may be available for 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, or 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 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.
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.
Coverage for damage due to leaks or seeping water from various household systems or appliances.
Dwelling foundation coverage for settling, cracking or other damage from certain causes.
Before choosing any of these coverage options, 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 $1,500 — $320 less than the national average of $1,820 per year. Below are average rates for a few other major U.S. insurers.
Company | Average annual rate |
|---|---|
$1,500. | |
$1,660. | |
$2,180. | |
$2,190. | |
USAA* | $1,775. |
*USAA homeowners insurance is available only to active-duty military members, veterans and their families. | |
Our sample rates are for 40-year-old homeowners with good credit, 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.
Discount if your home has certain wind mitigation features.
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.
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 highly rated State Farm mobile app lets you view policy information, file a claim and make payments in a variety of ways, including with Apple Pay or Google Pay. If you use State Farm's investing services, you can also access those on the app.
Claims: You can file a claim online, on the mobile app or by calling 800-SF-CLAIM. Once the claim is in progress, you can track it online or in the app. State Farm will pay you via direct deposit or check.
Customer service: Got questions? You can reach out to a local agent, fill out an email form, use the company's chatbot or call 800-782-8332.
Where State Farm stands out
Generous dwelling coverage. Some other insurers charge extra for extended replacement coverage, while State Farm generally includes this for free.
Affordable rates. State Farm's homeowners insurance costs less than the national average, according to NerdWallet's rate analysis.
Where State Farm falls short
Relatively few discounts. State Farm doesn't advertise as many discounts as some of its competitors, though these may be less important given the overall affordability of its rates.
State Farm vs. competitors
State Farm vs. Allstate home insurance
The primary difference between State Farm and Allstate home insurance is how each company covers the structure of your home. State Farm generally includes an extra cushion above your dwelling limit in case rebuilding is more expensive than expected. Allstate offers similar coverage, but charges extra for it.
State Farm also draws fewer consumer complaints for a company of its size than Allstate does.
Otherwise, the two companies have a lot in common. Both are among the largest home insurers in the U.S., with policies available across the country, and they each offer a wide range of coverage options to choose from.
Read our Allstate home insurance review for more details.
State Farm vs. USAA home insurance
The biggest difference between State Farm and USAA home insurance is who can buy it. While just about anyone can get a State Farm policy, USAA sells home insurance only to active military, veterans and their families.
USAA's policies include unique perks that appeal to its clientele. For example, it covers military uniforms without a deductible and pays for personal belongings damaged in an act of war. But it also includes coverage that benefits all homeowners, such as replacement cost coverage for personal property. That means if your stuff is stolen or destroyed, USAA will pay enough to buy brand-new replacements. This coverage is also available from State Farm, but it may cost extra.
Learn more with our USAA home insurance review.
State Farm vs. Progressive home insurance
The main difference between State Farm and Progressive home insurance is that State Farm sells its own policies, while Progressive works with third parties.
When you shop for a policy on the State Farm site or through an agent, you'll get a quote for a State Farm policy — but when you shop with Progressive, you may be able to choose between quotes from multiple companies.
Both State Farm and Progressive offer discounts when you bundle more than one policy (such as homeowners and auto).
Check out our Progressive home insurance review to learn more.
Is State Farm home insurance right for you?
Its combination of affordable rates, plentiful coverage options and widespread availability makes State Farm a solid choice for most homeowners. Those who appreciate personal service can connect with a local agent, while those who prefer less interaction can buy a policy and carry out most other tasks on State Farm's website.
However, the company isn't currently selling new homeowners policies in Massachusetts or Rhode Island.
Homeowners insurance star 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, coverage, discounts and online experience. 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 full ratings methodology for home insurance.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. 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. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. 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 various insurance companies in every ZIP code across the U.S. All rates are rounded to the nearest $5.
Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1984. 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.
We made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren’t available.
These are sample rates generated through Quadrant Information Services. Your own rates will be different.
