Together the State Farm General Insurance Company (State Farm) and other State Farm companies create the largest property & casualty writer in the U.S. and the largest home insurance company. State Farm had wrote more than $58 billion in direct premiums in 2014, which accounted for 20.32% of the market share. Known for their “Like a good neighbor” slogan, State Farm processes roughly 35,000 claims each day across all lines of business and has an agent network of approximately 18,000. This review will compare State Farm’s home insurance quotes to its competitors, how it differs from competitors and help you choose which insurer is best for you.
- State Farm Home Insurance Quote Comparison
- Our Review of State Farm Homeowners Policy and Coverage
- Financial and Customer Ratings
- Filing a Claim with State Farm
To show how the price of their policies stack up against others, we compared State Farm homeowners insurance quotes to national competitors. We've used two sample houses in California that are both 15-year-old single family homes with replacement cost values of $250,000 and $400,000 to obtain the annual rates we've shown from the largest companies in the graph below. These are just a benchmark, however - depending on your own background and the characteristics of your house, your actual quotes will be very different from all companies.
You’ll notice that State Farm came very close to the middle of the pack in California. Out of the 50 home insurance companies surveyed in the state, the average cost of a policy covering our example homeowner's $250,000 property was $836 and State Farm reported a premium of $864. That’s only $28 more than the average or about a 3% difference. The median cost of the same policy was $811.
Out of the same group of 50 insurers, for an example house covered for $400,000, State Farm ranked as the 37th cheapest or the 13th most expensive. The average cost to insure our $450,000 property in question was $1,330 in CA at State Farm, which came out to be $65 or about 5% more than the average, which was $1,265 among the 50 carriers. The median rate for the same house was $1,229.
However, this study is based on a specific homeowner profile in California that we're offering as a benchmark. Both houses are 15 years old, single family-detached with frame construction, and have a $1,000 deductible. Differences between home insurance quotes are largely based on where you live, the replacement cost of your home and personal belongings stored in it, etc. Similar homes can be priced wildly different depending on all the factors considered. Once you move beyond the price, there are other important considerations such as how helpful your agent will be, the quality of customer service and the claims processes.
State Farm benefits from being the largest homeowners insurer in the U.S. The company wrote more than $58 billion in premiums in 2014, accounting for 20.32% of market share. That’s nearly $30 billion more in premiums written than the company with the second largest share of the market, Allstate.
With its gargantuan size comes a wealth of historical data and the ability to execute analysis and practices that help State Farm price their policies competitively. The coverage itself is very similar to what other companies offer. All homeowners insurance policies cover the structure of the home, the belongings of the policyholder, liability and additional living expenses. Beyond the price of policies, what sets home insurance companies apart from one another are their supplemental tools, services offered, and claims process.
|Rank||Homeowners Insurance Company||Market Share|
|8||American Family Mutual||2.80|
|10||Erie Insurance Group||1.58|
Like most insurance companies today, State Farm’s website has a quote calculator you can use to get a sense of what your premium would cost. A quote is not the exact rate you would pay because ultimately an agent would have to confirm some additional details, but State Farm’s is pretty accurate and a good resource for consumers. Tools like these are important when shopping for a policy.
Agents: State Farm has a network of approximately 18,000 agents that do more than just sell policies to consumers. They have a continuing relationship with policyholders in the event they need to file a claim or have any questions about their policy or coverage. Insurance products are increasingly available for purchase online but having a specific individual as a point of contact is something many policyholders are still interested in.
Other Financial Products: State Farm also might be a good fit for those interested in managing most or all of their financial services through one company. It offers many lines of property and casualty insurance along with auto insurance, life insurance, retirement and investment services, and banking.
Tools & Apps: Policyholders can pay their premiums and manage other funds and accounts with State Farm online, where they have access to other tools as well. For example, State Farm’s HomeIndex tool is an easy way to inventory your belongings and keep track of what you own - that's a great backup to have when you have to file a claim, and need to itemize the personal belongings damaged. All of the above also are accessible via the company’s State Farm Pocket Agent mobile app.
State Farm has received excellent financial grades from a number of industry organizations and rating agencies. This means for consumers that State Farm has sufficient means to pay out any homeowners claims that are submitted by their policyholders.
|Rating Company||Allstate Insurance Rating|
|Standard & Poor's||AA|
|Moody's Investor Service||Aa1|
The insurer was also rated “Among the best” overall by the 2014 J.D. Power Homeowners Insurance Study, which surveys existing policyholders on a number of customer satisfaction elements.
|J.D. Power Homeowners Insurance Study||Rating|
|Overall Satisfaction||Among the best|
|Policy Offerings||Among the best|
|Billing and Payment||Among the best|
|Interaction||Among the best|
Your State Farm agent should be your first point of contact if you need to file a claim. They will give you instructions regarding it and be able to answer any questions you might have. You can also file a claim on the State Farm website or over the telephone if your agent is not available. Telephone contacts are below:
- 1-800-STATE FARM (1-800-782-8332)
- 1-877-627-5757 (Emergency Roadside Service)
- 1-800-440-0998 (Payments)