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Home Insurance
Amy Fontinelle
Kara McGinley
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Published 4:00 a.m. ET May 3, 2023
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State Farm
State Farm home insurance has below-average rates and relatively few customer complaints. The company, which offers many types of insurance, started selling homeowners policies in 1935.
Pros
Cons
State Farm is the largest home insurer in the country, as well as the largest auto insurer. Founded in 1922 and based in Bloomington, Illinois, it’s a mutual insurance company. That means it’s supposed to operate in the best interest of its customers and doesn’t answer to shareholders. Another bonus — State Farm has the highest financial strength rating from AM Best: an A++.
State Farm didn’t make the cut in our analysis of the cheapest home insurance companies, but its rates are still cheaper than the national average. Here’s how State Farm’s rates compare to competitors for a homeowners policy with $350,000 worth of dwelling coverage.
State Farm’s home insurance provides financial protection against loss caused by disasters, accidents and theft. Most standard homeowners insurance policies include coverage for the structure of your house, your personal belongings, liability protection and additional living expenses.
This coverage helps pay for damage to the house itself, including the roof, interior and exterior walls, slab, flooring, water pipes and supply lines, and attached structures like an attached garage.
This pays for damage to detached garages, sheds, fences and other detached, permanent structures on your property.
Your personal property coverage pays for damage to or theft of your personal belongings, like furniture, appliances, electronics, tools and books.
Most home insurance companies pay out for your belongings’ actual cash value, meaning depreciation is factored into your claims reimbursement. With State Farm, you may be able to add additional coverage to your policy to ensure you’re paid out at today’s prices for your belongings.
Also called additional living expenses (ALE) insurance, or Coverage D, loss of use coverage helps pay for costs beyond your normal living expenses if you have to live somewhere else while your home is being repaired or rebuilt because of a problem covered by your policy. This could include expenses for hotel rooms, housing rental, pet boarding and restaurant meals.
Liability insurance pays for other people’s property repairs, medical bills and lost wages — up to the limit in your policy — if someone is injured or their property is damaged and you’re found to be at fault. For example, if your dog gets loose at the park and attacks someone and it results in an injury. The insurer will also pay to defend you if you’re sued.
This coverage pays for another person’s medical bills if they’re injured while visiting your home, regardless of who was at fault. Medical payments coverage is available in small amounts, typically up to $5,000. Larger claims would fall under liability insurance, if you’re at fault for an injury.
The most common homeowners insurance policy, an HO-3, covers your house structure for any problem unless the problem is listed as an exclusion, such as floods and earthquakes.
An HO-3 covers your personal property for 16 specific problems, or perils, which will be explicitly listed in your policy. These include:
No homeowners policy covers every type of problem. Some losses are too risky for insurers to cover if they want to stay in business and be able to pay homeowners’ claims.
Here are some of the losses a standard home insurance policy won’t cover:
State Farm offers many types of additional coverage options:
Like most homeowners insurance companies, State Farm offers its customers discounts for having more than one policy with the company and for taking steps to reduce the risk of losses. Here are some ways you may be able to save on State Farm home insurance.
State Farm earns 5 stars out of 5 in our analysis of the best home and auto bundles. If you insure both your home and your vehicles with State Farm, you could save up to an average of 23% annually on your home insurance costs.
Your deductible is the amount subtracted from your claim payout before your insurance company issues you reimbursement for repairs. The higher your deductible is the cheaper your home insurance rates will be, but it also means the more you’ll have to pay out of pocket for repairs.
With State Farm, if you raise your deductible from $500 to $2,000 you may save 16% on your home insurance costs. This was a factor that went into our analysis of the best home insurance companies.
If you have home monitoring devices such as burglar alarms and smoke detectors, State Farm may reduce your homeowners insurance premiums.
State Farm offers homeowners insurance discounts in 26 states for using certain types of impact-resistant shingles.
Although it’s not technically a discount, State Farm will cover the cost of a Ting device and a three-year subscription to monitor your home’s electrical system for problems that could cause a house fire. If the device detects a problem that requires professional attention, Ting will provide up to $1,000 in electrician services per year to repair the problem.
State Farm has a very low rate of complaints according to data from the National Association of Insurance Commissioners (NAIC). State Farm’s complaint level is below the industry average, and better than some of the other home insurance companies we analyzed. The NAIC logs the complaints consumers make with state insurance departments about homeowners insurance companies. Complaints are often about delays, denials or settlements when filing a claim.
Our insurance experts reviewed rates from 174 different home insurance companies and evaluated companies on four key factors: rates, consumer complaints, high deductible discounts available and if the insurer offers extended or guaranteed replacement cost coverage.
Each home insurance company was eligible for 100 points, with each factor carrying a different weight.
State Farm scores 4 stars out of 5 in our analysis of the best home insurance companies.
Our insurance experts follow strict editorial guidelines to ensure fairness and unbiased reviews. Rates are courtesy of Quadrant Information Services and are based on the average dwelling coverage limits of $200,000, $350,000, $500,000 and $750,000, unless otherwise noted. These average rates are based on a sample homeowner with good credit and no claims history. Your rates may vary.
State Farm has a very low customer complaint rate for homeowners insurance according to data from state insurance departments compiled by the National Association of Insurance Commissioners, implying that most policyholders are satisfied with State Farm’s claims process and customer service.
State Farm offers several ways to file and track the status of your claim: by phone, through its website or through its mobile app.
No, State Farm is not a home insurance company that bans dog breeds.
Some homeowners insurance companies won’t cover any liability you incur if you own a breed they don’t cover and your dog injures another person or their property.
The most commonly banned breeds include Doberman Pinschers, pit bulls and Rottweilers.
Yes, State Farm offers the type of home insurance policy that provides property and liability coverage for mobile homes. If your home was manufactured in a factory and assembled where it resides, you can apply for coverage with State Farm. This coverage has exclusions, but they are similar to the exclusions for a site-built home.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
Amy Fontinelle
Blueprint
Amy Fontinelle has more than 15 years of experience helping people make informed decisions about their money, whether they’re refinancing a mortgage, buying insurance or choosing a credit card. As a freelance writer trained in journalism and specializing in personal finance, Amy digs into the details to explain the products and strategies that can help (or hurt) people seeking greater financial security and wealth. Her work has been published by Forbes Advisor, Capital One, MassMutual, Investopedia and many other outlets.
Kara McGinley
Blueprint
Kara McGinley is deputy editor of insurance at USA TODAY Blueprint and a licensed home insurance expert. Previously, she was a senior editor at Policygenius, where she specialized in homeowners and renters insurance. Her work and insights have been featured in MSN, Lifehacker, Kiplinger, PropertyCasualty360 and more.
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