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State Farm Homeowners Insurance Review 2021

State Farm has a raft of homeowners coverage options and a nationwide network of agents.
July 20, 2021
Homeowners Insurance, Insurance
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Founded by a retired farmer and insurance salesman in 1922, State Farm is now one of the largest homeowners insurance companies in the U.S. In addition to homeowners insurance, State Farm sells car, life, umbrella and other insurance policies both online and through a network of more than 19,000 agents.

Who it’s good for: State Farm homeowners insurance is a good pick for those who prefer to develop a personal relationship with an agent and feel most comfortable buying insurance from a well-established company.

State Farm home insurance pros and cons

User-friendly website.Few discounts available.
Agents offering personalized service.
Fewer consumer complaints than expected based on company size.

How State Farm home insurance rates

4.5 NerdWallet rating

State Farm homeowners insurance earned 4.5 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 these ratings, State Farm is among NerdWallet’s Best Homeowners Insurance Companies.

State Farm home insurance state availability

State Farm sells homeowners insurance in all 50 states and Washington, D.C.

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 coverageWhat it does
DwellingPays to repair or rebuild the structure of your home.
Other structuresCovers damage to unattached structures such as a shed or fence.
Personal propertyPays to repair or replace personal belongings such as furniture or clothing.
Additional living expensesPays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs.
LiabilityCovers legal expenses and damages if you're responsible for injuries to other people or their property.
Medical paymentsCovers injuries to guests in your home, regardless of fault.

For more details, see Homeowners Insurance: What It Is and What It Covers.

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

One of them, the “increased dwelling limit,” is available at no cost and will automatically extend your replacement cost coverage up to 20% as long as you’ve insured your home at least up to its estimated replacement cost.

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 coverage options cost extra, including:

  • Coverage for backup of sewers or drains.
  • Coverage for identity fraud or cyber attacks.
  • Earthquake coverage.
  • Liability coverage for those providing in-home child or adult care, or for those in certain occupations such as nursing.
  • Coverage for structures located outside the premises of your home.
  • 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 underground utility lines that are damaged.
  • 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.
  • Coverage for the costs of complying with building codes or zoning laws.
  • Various coverage options while a new home is 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 those who do some types of work out of their 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 electing any of these additional coverage options, be sure to read the fine print or ask your agent to talk you through any relevant limitations and exclusions.

» MORE: 10 kinds of damage home insurance won’t cover

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 United States. State Farm was the cheapest option in our mini-analysis with an average annual rate of $1,325 — more than $250 less than the national average of $1,585 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.

» MORE: The best cheap homeowners insurance

State Farm home insurance discounts

State Farm homeowners discounts vary by state, but may include the following:

  • Multiple line discount.
  • Protective device discount for home monitoring systems such as burglar or smoke alarms.
  • Discount if your roof is made of certain impact-resistant materials.

State Farm 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.

» MORE: State Farm life insurance review

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.

» MORE: State Farm renters insurance review

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.

State Farm home insurance FAQs

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.

What other insurance does State Farm offer?

State Farm sells a wide selection of policies, including car, umbrella, life, renters, boat and other insurance. The company also offers checking and savings accounts, traditional and Roth individual retirement accounts, credit cards, home loans, annuities and other financial products. Read NerdWallet’s State Farm auto insurance review.

Does State Farm home insurance cover mold?

State Farm homeowners policies generally do not cover damage related to mold, except in those states where some limited mold coverage is required. Consult an agent for more details.

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. 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.

Homeowners insurance rates methodology

NerdWallet averaged rates for 40-year-old men and women from 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 1971. 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.
  • These are sample rates generated through Quadrant Information Services. Your own rates will be different.

    Methodology: Insurer complaints

    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.

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