State Farm Homeowners Insurance Review
State Farm insures almost a fifth of the nation’s homeowners. The company stands out for its outstanding financial strength, helpful online resources, and excellent web interface. On the other hand, State Farm’s options for customizing homeowners policies are scarce, so it may not be the best choice if you are looking for special coverage needs. It also limits discounts for customers in Alaska, New York, North Dakota, Pennsylvania, and South Dakota, so homeowners in those states may see higher premiums.
We’ve done some research on this insurance and how it compares with the best homeowners insurance companies to give you a place to start in your search. Take a look at our State Farm home insurance review to see if it matches your needs.
State Farm Overview
State Farm has a positive reputation with its customers. It has a lower-than-average complaint rating at the National Association of Insurance Commissioners (NAIC), which means that a below-industry-average number of complaints are filed for the company’s home insurance product. As a nationwide carrier, agents are available 24/7, and if you prefer to do everything online, the company offers a great web experience.
Our State Farm Home Insurance Review digs into the ins and outs of the carrier’s coverage and perks. But remember, when looking for homeowners insurance, comparing quotes from several companies can help you make sure you are getting the coverage you need at the best rate.
PROS
CONS
State Farm Home Insurance Highlights
The Competition
| Company | Reviews.com Score | AM Best Financial Strength Rating | 2020 J.D. Power Score | NAIC Customer Complaints |
| State Farm | 3.75 | A++ | 829/1,000 | Fewer complaints than average |
| Geico | 2.75 | A++ | N/A | Fewer complaints than average |
| Allstate | 4 | A+ | 829/1,000 | More complaints than average |
| Progressive | 3.75 | A+ | 797/1,000 | More complaints than average |
*All information accurate as of 08/26/2021.
State Farm vs Geico
The biggest difference is that State Farm underwrites its own home insurance policies and Geico partners with other companies to provide its homeowners insurance. This gives State Farm more stability in the pricing structure and consistent services nationwide, although some of its discounts vary per state. Both companies provide coverage in most states; State Farm does not offer new home or auto policies in Massachusetts or Rhode Island. However, State Farm earns the higher Reviews.com score, with a rating a full point higher than Geico’s.
As for customer experience, both companies have lower-than-average complaint index scores with the NAIC, meaning that fewer complaints than average are filed against the companies’ home insurance products.
State Farm vs. Allstate
State Farm and Allstate go head to head in almost every area we evaluated. They both underwrite their own home insurance policies, the coverages are competitive, and their services are available through local agents across the nation. Allstate receives more customer complaints about its home insurance than State Farm, according to the NAIC. If you prefer to manage your home insurance online, State Farm has an excellent web experience. Meanwhile, if you are looking for customization, you could be better off with Allstate.
The Bottom Line
State Farm is a solid option for customers who enjoy managing their insurance online, from quoting to claims and educational content. But if you rather do some of the process face to face, the company has local agents available throughout the U.S. State Farm’s financial ratings are also strong, which indicates solid past performance of being able to pay out customer claims. However, before choosing a homeowners insurance policy, you may want to compare a few companies side by side. While State Farm could be a great option to include on your list, another company could offer you similar coverage at a more affordable price.
Methodology
We evaluated the company based on its customer rating and experience, financial stability, and coverage to create our State Farm Homeowners Insurance Review. To compare this company with home insurance companies across the board, we then calculated a Reviews.com score based on the following:
- Customer Ratings: Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage: As there isn’t one company to fit everyone’s needs, we evaluated companies by the number of coverage options and add-ons available.
- Confidence: It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength ratings indicate a positive history of being able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
- Customer Experience: The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
State Farm Home Insurance FAQ
About the Authors
Cate Deventer is a writer and licensed insurance agent. She has a Bachelor’s degree in theatre and is currently pursuing a degree in English with a concentration in professional and technical writing from Indiana University East. Her work has been featured on Reviews.com and Bankrate.com, and she’s passionate about helping people take charge of their finances. In her free time, she likes to read thrillers and sci-fi novels, garden, and toss tennis balls for her dog.
