Certainly, no legitimate homeowners insurance companies review without including State Farm homeowners insurance. When you consider advertising on TV, Google, Facebook, and Twitter, State Farm is everywhere.
However, being well-known doesn’t mean you’re insurance products are well-liked. In fact, just the opposite might be true because pricing, customer service, and claims service have little to do with each other.
To help you decide if State Farm homeowners insurance is the best product to protect your most valuable asset, this article is a great place to start.
About State Farm Insurance Company
State Farm’s mission statement is understood by many since the company has been shouting it from the rooftops for almost 100 years; “like a good neighbor, State Farm is there.”
State Farm was founded in 1922 and since that time has established itself as a neighborhood resource for protecting individuals, families, and businesses from everyday financial risks.
As the company has expanded its footprint across the United States, they have discovered how to effectively protect and service over 83 million policyholders. Today, State Farm utilizes over 58,000 employees and over 19,000 contracted agents.
Over time State Farm auto and home insurance have grown to be two of the most popular insurance products in the U.S. State Farm’s rise to the top echelon of the insurance industry was driven by staying focused on its mission to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.
State Farm’s Financial Stability
Consumers who understand that insurance policies are typically long-term promises, also understand that any company under consideration must demonstrate a financial ability to keep its promise to pay policyholders’ claims well into the future.
Here are the current ratings for State Farm Insurance Company:
- A.M. Best: A++ – this is the highest rating that A.M. Best assigns.
- S&P Global: AA – this extremely high rating is based on the strong claims-paying ability of State Farm Insurance Company.
Based on the ratings issued by insurance company rating services, policyholders’ can feel confident that when the time comes, State Farm will be there to help.
State Farm Insurance and Financial Products
State Farm can mean much more to your family or business because they offer so much more than a typical insurance company, Rather than just protecting your home and auto, State Farm offers many additional products and also is a great resource for banking and investments. State Farm Life Insurance also ranks among the top life insurance companies too.
Automobile Home & Property Life Health Business
Car Insurance Home Insurance Term Life Supplemental Health Professional Liability
Motorcycle Condominiums Whole Life Medicare Supplements BOP
Boat Insurance Renters Universal Life Individual Medical Commercial Auto
Off-road vehicles Mobile Homes Annuities Disability Income Workers' Comp
RVs Farm & Ranch General Liability
Rental Properties Commercial Property
Personal Unbrella Commercial Umbrella
In addition to a plethora of insurance products, State Farm also provides banking and investment services and the associated products involved.
We could easily write at least 10,000 words about all of the products and services that State Farm has to offer but for the purpose of this article, we want to focus on State Farm Home Insurance.
State Farm Homeowners Insurance
Similar to other highly-rated insurance companies, State Farm offers a standard homeowner’s insurance policy and then provides additional optional coverages so that your home will be sufficiently insured and financially protected.
|Type of Coverage||What it Covers||Typical Limit of Coverage||Deductible Applied|
|Dwelling||Covers the structure of the home and any attached/built-in appliances||Claims are generally based on replacement cost of the home (land or lot not covered)||Yes - Flat amount or % of structure value|
|Other Structures||Covers any structures on the property not attached to the house such as fences, barns, workshops||Usually 10% of dwelling limit. Can be increased if needed.||Yes|
|Personal Property||Personal belongings inside and outside of your home||50% of dwelling limit but can be increased or decreased as needed||Yes|
|Loss of Use||Pays for temporary relocation expenses while the home is under repair||20% of dwelling limit||Yes|
|Personal Liability||Pays for medical expenses and legal expenses if found liability for injuries or property damage to a third-party||Typically available limits are $100,000 to $1 million||No|
|Medical Payments||Pays medical expenses for third-party injuries regardless of fault||Typical limits are $1,000 to $10,000||No|
To understand why you should consider adding optional coverages, you should first know what’s not covered under the standard homeowners’ insurance policy:
Power Failure Nuclear Hazard Intentional Acts
Water Damage Governmental Actions Law or Ordinance
Theft while Under Construction Vandalism if Vacant more than 60 Days Fungus, rot, or mold
Mechanical Breakdown Damage from smog, rust, or corrosion Wear and tear
Damage associated with Neglect Damages caused by Your Animals Damage caused by rodents, insects, or birds
Expansion, shrinkage, settling, or bulging Discharge, seepage, or dispersal of pollutants Smoke damage caused by industrial operations or agricultural smudging
War Movement of earth Collapse of property
Additional Home Insurance Options from State Farm
In most cases, you can add optional coverages to your State Farm Home insurance policy to make up for the coverage holes caused by exclusions unless the coverage you need is available through a stand-alone policy like flood insurance.
Rather than taking the chance that you’ll not be covered because of exclusion, homeowners would be wise to consider the optional coverages offered by State Farm:
- Water Backup – this optional coverage fills the exclusion for water damage due to drain or sewer backups and sump pump failure.
- Scheduled valuable items – this option allows the policyholder to schedule valuable items that are subject to “special limits” or “sub-limits.” It’s perfect for making certain that your jewelry, art, furs, guns, and collections are insured for their appraised value. Imagine having a $15,000 diamond stolen only to find out the limit of coverage is $2,000.
- Ordinance or Law – This optional coverage will pay for any increases in construction costs if you’re forced to move, rebuild, or repair your home because of a building ordinance.
- Mold (Fungus) – This option increases the coverage for mold and fungus remediation expenses to $20,000.
- Equipment Breakdown – Equipment breakdown coverage is similar to a home warranty because it covers the cost to repair or replace home systems like HVAC, water heaters, and home entertainment systems.
- Business Personal Property – This is a great option for people who work from home because it allows you to increase the sub-limit on business personal property to an amount sufficient to your needs.
- Service Line Coverage – This coverage will pay for repair or replacement of sewer lines, electrical service lines, and data lines that you own and are damaged or have failed.
- Identity Theft – Having your identity stolen can be expensive and it happens more than you think. This option will provide coverage so that you can recover your identity and deal with the cost of doing so.
What State Farm customers are Saying
When it comes to State Farm Homeowners insurance, you don’t have to take our word for it. Here’s what customers are saying about State Farm’s service:
- Better Business Bureau: A+
- J.D. Power: 4 out of 5 stars for overall satisfaction
- Consumer Reports: 85 out of 100 score
- ConsumerAffairs: 4 out of 5 stars (911 ratings)
Frequently asked Questions
Does State Farm offer more than just home and auto insurance?
State Farm offers a comprehensive portfolio of insurance products for families and businesses. From life insurance to professional liability, State Farm has you covered.
What about health insurance? Does State Farm offer health insurance?
Yes. State Farm offers health insurance and specialty health insurance products,
How do I find a State Farm agent near me?
You can locate agents near you by visiting State Farm’s website and then click or tap on “find an agent” in the main menu.
Does State Farm still offer banking services?
Yes, State Farm can be your one-stop-shop by offering banking and investment services.