Pros / State Farm does not set limits on how much it reimburses you for lost, stolen or damaged electronics.
Cons / The basic home coverage was not as high as most of the other home insurance companies we considered.
Verdict / While its coverage for home replacement was not as high as other companies' policies, despite having slightly higher premiums, State Farm has excellent coverage for personal property, especially electronics. It's worth pricing out, especially if the value of your home lies in what's within the walls.
State Farm provides good insurance coverage at reasonable prices. Its coverage of electronic items is especially strong. The online process was easy, and the agents we spoke with were willing to do extra work to make sure all our questions were answered. With loss of use coverage for up to a year as well, this homeowners insurance is one of the best options available.
Value (Coverage vs. Premium)
When considering the amount of coverage you get for each dollar you spend on your premiums, State Farm ranks about average in value. This is based on the quote we received for a suburban, single-family home. Like most homeowners insurance, State Farm's policies cover the home, outlying buildings such as sheds, and all the items on the property.
The policy, like all insurance policies we considered, also covers liability. This helps cover your expenses if you are sued because someone is hurt in your home or hurt by an animal you own. Most insurance companies default to $300,000 in coverage. However, if you feel your home is at a higher risk, such as if you have nervous dogs or have a lot of people coming and going from your home, you may want to increase this amount. Often an increase in coverage amounts to only a few dollars a year.
Like most insurance agencies, State Farm offers discounts for having a claims-free history, bundling home insurance with other State Farm policies and having home security devices. It also offers discounts for certain roofing materials and fire sprinklers. The online quote process asked about some of these items, but to get the best premiums, you should be sure to mention any unusual safety features to see if they qualify for a discount.
Home coverage considers how much the insurance company will reimburse you to rebuild your home if it is completely destroyed in a disaster, such as a fire or weather-related incident, with the exceptions of flooding and earthquake. Like most insurance agencies, State Farm asks questions about the type of home you have; the type of roof; and whether the appliances, counters, or flooring have been upgraded. From there, it can make a reasonable assessment of how much it would cost to rebuild your home. Like most insurances, State Farm allows a certain percentage over that amount in case the cost of labor or materials is higher than expected.
State Farm did not rank as well in this category because its quoted coverage was not as high as other agencies quoted to us, despite having a higher-than-average premium. However, it may still be enough for your home. The estimated replacement value for a home is often lower than market value because the market value takes into account the land, the foundation and other items that often survive major accidents. In our test, State Farm, like most of the agencies we reviewed, quoted us a replacement value higher than the market. Only USAA's assessment was lower. The replacement value greatly affects the cost of your premium, so be sure to ask if you think their estimate is too high or too low.
This homeowners insurance company covers all types of homes, including manufactured homes and condominiums. It also has coverage for farms and ranches, whether you live on it or rent it out. There are different types of farm coverages that cover not just the buildings, but grain and livestock. You'll want to have a good assessment of your assets when you speak to an agent to ensure everything you own is well covered.
State Farm rates very well for coverage of personal property. In our tests, we asked for the baseline coverage of personal property, which most agencies calculate by taking a percentage of the value of your property. This company had one of the highest limits on how much it would reimburse you for lost, stolen or damaged property.
Personal property covers everything you own that is in your home, from pillows to pans, tables to toys. However, some items tend to have a higher value than their practical worth. Jewelry, fine art, firearms and electronics are counted among these. Most insurance companies set a limit on how much they will reimburse you for these items. You should check the amount covered in your quote and weigh it against the value of the items you own. If you need more coverage, endorsements are available, and in some cases, these come with lower deductibles as well.
State Farm's basic policies had excellent limits. It pays up to $2,500 to replace lost or stolen firearms and $5,000 for jewelry. Keep in mind that "replace" only refers to a comparable item. It does not account for customization or the value if the item is an antique. This home insurance company will replace all your electronics, no limit, up to the coverage of your personal property. Only about half the agencies we examined do this. If you have a lot of technology in your home, such as stereo equipment, computers or smartphones, this is a company you should consider.
It concerned us that the agent we spoke to wasn't sure about the loss of use coverage. Most agents we spoke to at other companies provided this figure immediately, but the State Farm agent had to consult with her claims department. Even so, she gets credit for being honest and for following up on the question to make sure we got the correct answer.
The website has tools for helping you determine the value of your home, and it offers downloadable documents to help you create an inventory of your home and personal items. It also offers HomeIndex, a free online tool that lets you record your inventory, including photos and notes. This provides a convenient way to keep track of your items in case you need to file a claim.
State Farm has mobile catastrophe units to respond to large-scale disasters. Depending on the location and the unit deployed, the company can respond and set up operations on location in four to 48 hours. The team consists of claims agents and other employees to help people process their claims, assess damage and get started with rebuilding.
If your home is so damaged you cannot stay in it, State Farm's loss-of-use coverage helps compensate for the added expenses of living away from home. This can include hotel bills and restaurant eating, plus laundromat services. Some companies set a monetary limit on this reimbursement, but State Farm helps you for up to a year after the disaster, until you find a new permanent home or have yours rebuilt.
State Farm is among the best homeowners insurance companies because it provides strong coverage for the premiums it charges. It has the usual discounts, plus a couple not customarily provided. If you have a lot of electronics, this company is especially useful because it doesn’t limit how much it reimburses you. While we recommend choosing a couple of home insurance companies and pricing them out, State Farm is a top choice to consider.