State Farm homeowners insurance review 2024: A comprehensive analysis of customer satisfaction and policy coverage.

State Farm, being the largest homeowners insurance company in the U.S., provides reasonable rates, exceptional customer service, and access to over 18,000 agents, both in-person and virtually.

State Farm offers a range of customization options, including coverage for sewer backups, service lines, home systems breakdowns, and earthquakes. Additionally, extended replacement coverage can be added to your policy, and if your property is damaged in a covered loss, State Farm's Premier Service Program can assist you in finding top contractors.

While State Farm offers fewer discounts than some competitors, you may need to work with an agent to discover endorsements not listed online. Moreover, the brand is not currently approving new policies in Rhode Island, Massachusetts, or California.

State Farm homeowners insurance review

Pros and cons of State Farm homeowners insurance

Types of State Farm homeowners insurance

In all states except Massachusetts, Rhode Island, and California, State Farm offers homeowners insurance.

Basic coverage

A standard State Farm policy includes four types of coverage:

Rebuilding or repairing your home's physical structure, permanent fixtures, appliances, and attached structures is covered under dwelling coverage.
Personal property coverage: Pays to repair or replace items inside your house.
Home liability insurance: Safeguards against financial loss if you are held responsible for injuries or property damage that happen on your property.
If your home requires repairs and you need to relocate, additional living expenses will cover the cost of food, housing, and other necessary expenses.

Riders and endorsements

State Farm offers several riders and endorsements to customize your policy:

This coverage compensates for the repair or replacement of items at their market value instead of their actual cash value.
Valuable possessions rider: Can help cover jewelry, collectibles or art.
Your home and property are protected by a backup of sewer or drain.

You can purchase separate State Farm policies for flood, earthquake, and umbrella insurance.

State Farm homeowners insurance discounts

Not all discounts offered by State Farm are available in every location, and some may not be combined.

State Farm offers a discount of up to 17% when you purchase both home and auto insurance.
You may be eligible for a lower rate if you haven't filed a claim in the past three to five years.
Home alert: Installing smoke detectors or burglar alarms could lower your premium.
Discounted utility rating plans for home updates by qualified contractors.
Impact-resistant roof: Having an impact-resistant roofing material could lower your premium.
Automatic sprinkler: Available if your home has indoor automatic fire sprinklers.
Florida homeowners who adhere to specific building codes may be eligible for a reduction in wind mitigation costs.
Discounts could be provided to California communities or properties that have implemented wildfire prevention measures.

State Farm customer service

According to J.D. Power's 2024 U.S. Home Insurance Study and claims process survey, State Farm has an average customer satisfaction rating.

According to the National Association of Insurance Commissioners, the company's homeowners insurance complaints are average for its size.

Some policy options may not be listed online and you may need to speak to a State Farm agent for the full lowdown.

State Farm Customer Care can be reached at 800-782-8332, with representatives available Monday through Friday from 7 a.m. to midnight ET and on weekends and holidays from 9 a.m. to 9 p.m. Additionally, a virtual chatbot is available to answer common questions.

You can file a claim at any time of the day by calling 800-732-5246. Make sure to have your policy number, photos of the damage, and witness contact information ready.

You can connect with your State Farm agents virtually through the Good Neighbor Connect online platform.

Other State Farm insurance products

The largest property and casualty insurance company in the U.S. by market share is State Farm. It offers a wide range of coverage options.

State Farm is among the top insurers for bundling, offering customers up to 17% off when they purchase both auto and home insurance.

How State Farm compares to other homeowners insurance

In comparison to two prominent competitors in the home insurance industry, how does State Farm fare?

State Farm vs. Nationwide

Both State Farm and Nationwide offer homeowners insurance at a lower price than the national average. Although Nationwide is slightly cheaper, State Farm provides more discounts and is available in 48 states, one more than Nationwide.

Although Nationwide scored slightly higher on J.D. Power's claims satisfaction survey, State Farm has a few endorsements that Nationwide lacks, such as sewer backup and service line coverage to replace damaged utility lines running into your property, as well as flood and earthquake insurance.

State Farm vs. Farmers

While State Farm excels in certain areas, such as price, Farmers offers a greater number of discounts that could significantly reduce your base premium.

According to NAIC data, Farmers had about twice as many complaints about homeowners insurance as expected, while State Farm stood out for customer service and ranked above average for customer satisfaction with both homeowners insurance and the claims process.

How to buy homeowners insurance from State Farm

State Farm offers homeowners insurance in most states, and you can purchase a policy online, over the phone, or through one of their more than 18,000 agents.

In order to obtain a quote for insurance on a house, you must provide information about the property, such as its location, age, purchase date, and proximity to the nearest fire station. Additionally, you will need to disclose personal details, including your credit score and past claims history over the past five years.

Is State Farm homeowners insurance right for me?

If you prioritize convenience, State Farm is an excellent choice: Its user-friendly website allows for simple claim filing, and customers can access 24/7 support via phone and online. Additionally, State Farm has been highly rated for customer satisfaction with homeowners insurance by J.D. Power.

State Farm offers competitive rates and a discount of up to 17% for bundling home and auto insurance.

While new policies are available in Massachusetts and Rhode Island, State Farm has stopped issuing homeowners insurance policies in California due to rising construction costs, an increasing number of natural disasters, and a challenging reinsurance market.

Why trust CNBC Select?

Our goal at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each insurance review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of insurance products. At CNBC Select, we take pride in our journalistic standards and ethics, and we earn a commission from affiliate partners on many offers and links. However, our content is created independently by our team, without any input from our commercial team or external third parties.

Our methodology

CNBC Select evaluates homeowners insurance policies based on several factors, including coverage options, accessibility, pricing, additional coverage, discounts, and customer satisfaction.

We utilize data from the National Association of Insurance Commissioners' complaint index, Better Business Bureau ratings, A.M. Best's financial strength scores, and J.D. Power surveys to evaluate homeowners insurance and the property claims process.

Insurance rates for homeowners can originate from multiple sources, such as the insurer and state insurance agencies.

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