State Farm Review

Suitable For?

State Farm specializes in building homeowners a “triangle of protection” comprising home insurance, life insurance, and disability income. As State Farm notes on its website, many homeowners lose their homes not because of damage but because of a lack of insurance coverage in case of death or disability. If you own your home and have dependents, you may want to consider using State Farm to establish a triangle of protection.

What Coverage Includes

Basic home insurance from State Farm comprises all the features you would expect, without any additional features of note. As is the case with other home insurance companies, a basic State Farm policy covers all 16 of the “named perils” recognized by insurers.

Here’s what the basic policy covers:

• Damage to home or other structures on the property
• Personal possessions, such as furniture, clothing, and appliances
• Personal liability, in the event that someone else suffers injury or damage to their own personal property while on your property
• Loss of use, including hotel or rent costs when your home is out of action due to a covered incident

Optional Add-Ons

A State Farm standard policy covers damages and liabilities up to a pre-set limit. For everything else, there are voluntary add-ons.

• Extra coverage for personal possessions such as jewelry and home office equipment.
• Premier Service Program, a voluntary program that helps you recover from the unexpected following a covered loss. It includes emergency water removal services, flooring repairs or replacement, and contractor network service providers who can assist with selecting contractors for rebuilding and restoration. All work is guaranteed for 5 years by your chosen providers.
• Triangle of protection, which as previously mentioned is a package that combines homeowners insurance with life and disability insurance.
• Flood insurance, through State Farm agents enrolled in the National Flood Insurance Program.
• ID Restoration services, in the event your ID gets stolen or misused.

Discounts

• Multi-line discounts (e.g. home + auto, home + life)
• Installing a home alert system
• Roofing discounts
• Agreeing to pay a higher deductible.

Application Process

State Farm takes many different factors into account when calculating your home insurance premium. As a result, applying for a quote can take 20 minutes or in some cases even longer. State Farm is very interested in the most minor details about your home, from type of structure to type of roofing and the materials used in the walls. You should expect to answer questions about your home security system, although the good news is this may qualify you for a reduced rate.

Here are a few things to know before requesting a quote: If you’re already a State Farm customer, you may log in to get exclusive benefits and discounts. You can save your answers at any point and return to the form later. If you have a mobile or manufactured home, you must contact a State Farm agent directly for a quote.

How Safe is It?

State Farm has an A++ rating from A.M. Best, which is the highest rating possible. It has a AA rating from S&P Global, the second-highest rating possible. Both ratings attest to State Farm’s superior financial stability.  State Farm is the largest writer of property and casualty insurance in the United States, with 9.7% market share of all direct premiums written, according to the Insurance Information Institute. It is by far the largest writer of homeowners insurance in the US, with an 18.6% market share, more than double its nearest rival. 

Claims & Customer Support

As a large insurer, State Farm puts a lot of money into customer support and claims—allowing customers to file claims online, over the phone, or using the State Farm mobile app. State Farm’s claims process is similar to that of other large insurers. There are a few steps involved to it, and you will be asked to provide evidence to support your claim.

More about State Farm’s mobile app: the app, available on the App Store and Google Play, helps you manage all your State Farm insurance and banking accounts in one place. It’s particularly useful if you have more than one type of insurance from State Farm, allowing you to access all your documents and to file and track claims.

Summary

State Farm gets the job done year after year, as its domination of the homeowners insurance market shows. State Farm stands out by offering basic homeowners insurance at competitive rates to homeowners across the United States. Clearly, it does a good job of providing coverage and handling claims, which is why almost 1 in 5 American homeowners choose State Farm over its many rivals in a competitive market