29 November 2020

State Farm Home Insurance Reviews

State Farm Homeowners Insurance Review and Prices

Since 1922, when founder George Jacob Mecherle sold his first auto insurance policy, State Farm has grown to offer about 100 insurance, banking and investment products and services spread among five businesses. Altogether, these businesses have about 58,000 employees and 19,000 independent agents servicing about 83 million policies and accounts throughout the U.S. Based in Bloomington, Illinois, State Farm also has corporate locations in Atlanta, Dallas and Phoenix, along with offices throughout the country. The company has an A++ rating for financial strength from A.M. Best.

In addition to homeowners and property insurance, State Farm offers policies for life, health, disability and liability insurance, with a variety of specialized choices in each category. State Farm also sells policies for renters and condo owners, along with insurance for income property, manufactured homes, farms, ranches and personal articles. The company offers three tiers of standard coverage at different prices, including Essential, Expanded and Premium. Numerous coverage options are available at each level, individually or as part of a package.

State Farm sells insurance exclusively through a network of dedicated independent agents in all 50 states. Its website can connect you to an agent in your area or allow you to get a quote yourself.

What Homeowners Insurance Coverage Options Are Available From State Farm?

Standard homeowners insurance policies from State Farm include typical coverages offered by most insurers, such as dwelling coverage to protect your home against damage from weather and similar coverage for a detached garage, shed, guesthouse, greenhouse or another outbuilding. Damage from fire, theft and vandalism unrelated to weather is also covered, as is water damage from leaking pipes and harm to vehicles.

Standard coverage also includes personal property protection for furniture, appliances, clothing and other possessions in your home. However, jewelry or collectibles may require additional insurance. Also included is loss-of-use coverage that can help pay for temporary lodging and food or dining out while your home is repaired or rebuilt following a claim. Loss-of-use coverage also can reimburse you for lost income if you rent out a room in your home. Finally, liability coverage helps pay medical and legal expenses resulting from an injury to someone else on your property if you are deemed to be at fault.

Specialized policies for renters or condo owners cover personal property and liability within the unit, typically leaving the exterior, outbuildings and other elements to insurance maintained by the building owner or condo association.

What Homeowners Insurance Discounts Are Offered by State Farm?

State Farm offers a variety of discounts to help reduce homeowners insurance costs. A number of factors can affect what discounts you may be eligible for. Check with an agent or the State Farm website for discounts available in your state and for your situation.

  • Multipolicy discount: Combining homeowners insurance from State Farm with another policy such as auto insurance can help save money. Discounts will vary but can be as high as 20%.
  • Claim-free discount: State Farm offers reduced rates to policyholders who haven’t filed a recent claim, even if they are switching their coverage from another insurer.
  • Roofing materials discount: In some states, using impact-resistant roofing materials may qualify you for a discount on homeowners insurance with State Farm.
  • Home alert protection discount: State Farm homeowners insurance provides discounts for installing a fire, smoke or burglar alarm, and installing new, more secure deadbolt locks or a fire extinguisher.

What Additional Homeowners Insurance Coverages Are Offered by State Farm?

State Farm offers a wide variety of optional coverages you may want to consider. Examples include higher levels of personal property coverage for jewelry and other valuables or added liability coverage if you have a pool, trampoline or something else on your property that might increase risk to guests. Some of these added coverages are part of a bundle. Others are separate, such as flood insurance, which is not included in a standard policy.

You can discuss additional coverage options with an agent or learn about them by using State Farm’s online estimating tool. You enter basic information about yourself and your home, and the tool shows how adding or lowering specific coverages will affect your overall insurance costs.

  • Flood insurance: Minor water damage from something like a burst pipe is generally covered by a State Farm homeowners insurance policy, but a flood caused by an external source like an overflowing river is not. A separate policy is needed to cover these circumstances, and it may be required if you live in a flood zone.
  • Earthquake coverage: Most homeowners insurance companies, including State Farm, will not reimburse you if your home is damaged or destroyed in an earthquake. Specialized coverage is required and is offered by State Farm.
  • Full replacement cost: This coverage pays the actual cost to rebuild your home at current prices, which may be greater than the value of your home depending on its age, location, and local labor and material costs.
  • Energy efficiency upgrade: This can help pay to replace a damaged or destroyed appliance, water heater or other piece of equipment with a more energy-efficient unit.
  • Umbrella coverage: Umbrella coverage supplements liability coverage when the cost of a covered loss exceeds the limits of a standard homeowners insurance policy.
  • Water backup and sump pump overflow: This covers water damage caused by a failed sump pump or a drain backup, something not covered by a standard State Farm homeowners policy.
  • Personal injury liability coverage: Increased personal injury liability coverage provides added protection against lawsuits stemming from injuries to others, and it may be a good idea if you have a pool or other potentially dangerous items or conditions on your property.
  • Cyber event, identity restoration and fraud loss: Bundled together, these provide up to $50,000 to help cover lost income and legal fees resulting from fraud or identity theft, and $15,000 to help pay for damages from a cyberattack.
  • Home systems protection: This can help pay to repair or replace permanently installed equipment after a failure, such as an air conditioning system, power generator or water filtration system.
  • Off-premises structures: This provides coverage for buildings you own that are not on your property.
  • Adult day care: If you have contracted adult day care providers in your home, this will provide coverage for them.
  • Depreciated loss: This pays to repair or replace damaged property, less depreciation, at the time of loss, except for specific items that are reimbursed at market value.
  • Service line: Service line coverage pays up to $10,000 to help repair or replace underground water, electrical, sewer and data lines belonging to the homeowner.

Other Questions About State Farm Homeowners Insurance

What does State Farm homeowners insurance cover?
A standard homeowners insurance policy with State Farm includes coverage for damage to your home, outbuildings and their contents resulting from theft, fire or storms, along with liability protection to help with medical and legal costs if others are injured on your property. Standard policies also include loss-of-use coverage to help pay for meals and lodging elsewhere while your home is repaired or rebuilt.

What does State Farm homeowners insurance not cover?
Damage from a flood or earthquake is not included with standard homeowners insurance coverage from State Farm. Both require additional coverage that may or may not be needed depending on where you live. Expect costs to vary considerably depending on risk. Similarly, damage from a failed septic system or sump pump is not covered and requires optional insurance. Valuable art, jewelry or collectibles may also require additional coverage, along with business pursuits and professional services. If you rent an apartment or space in your home to a tenant, that too may require additional coverage.

How much is State Farm homeowners insurance?
State Farm proved to be one of the more expensive providers of homeowners insurance in our analysis, with a monthly cost of $129.58 to cover a prototypical $250,000 two-bedroom town house in Naperville, Illinois. Your own costs will vary depending on the location, size and age of your home, and other factors.

Does State Farm homeowners insurance cover mold?
A standard policy with State Farm includes a minimum of $10,000 to identify and repair damage from mold and fungus.

Does State Farm homeowners insurance cover water damage?
Damage from something like a burst pipe or failed washing machine hose may be covered by a standard homeowners insurance policy with State Farm, but flood damage or repairs after a sump pump or septic system failure require additional coverage. Consult an agent or use State Farm’s online estimating tool to learn more.

Does State Farm homeowners insurance cover theft?
Loss from theft is included in a standard homeowners insurance policy from State Farm. Valuable jewelry, art or other collectibles may not be included and may require additional coverage.

Does State Farm homeowners insurance cover roof leaks?
Damage from roof leaks is typically covered by a standard homeowners insurance policy from State Farm, but the cost to repair the roof is not.

Does State Farm homeowners insurance cover tree damage?
Damage from falling trees is typically covered by a homeowners insurance policy from State Farm.

Does State Farm homeowners insurance cover personal injury?
Injuries to others are covered by a standard homeowners insurance policy up to specified limits. Something like a swimming pool that poses a safety risk might be a reason to consider higher liability limits.
Does State Farm homeowners insurance cover fire?
Damage from fire is covered by a standard homeowners insurance policy from State Farm.

Does State Farm offer cyberattack coverage?
State Farm provides up to $15,000 to help pay for data recovery costs and repair or replacement of equipment in the wake of a cyberattack, along with professional assistance and reimbursement if you are the victim of extortion related to the attack. This coverage is available as a bundle with State Farm’s Identity Restoration and Fraud Loss coverage.

Does State Farm offer adult day care coverage?
State Farm provides liability coverage for contracted adult day care providers and operations in the home.

Does State Farm offer an energy efficiency upgrade?
State Farm can help pay to replace a damaged or destroyed appliance, water heater or other piece of equipment with a more energy-efficient unit.

How U.S. News Evaluated Homeowners Insurance

We explain what our research has determined matters most to consumers, experts and professional reviewers when it comes to homeowners insurance. Then we provide an unbiased evaluation of the homeowners insurance companies our research determined consumers, experts and professional reviewers searched for most frequently. Our goal is to empower consumers with information and tools to help them make informed decisions. More information about our 360 Reviews methodology for evaluating homeowners insurance companies is here.

U.S. News 360 Reviews takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.

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