- State Farm's Financial Strength and Market Presence: Founded in 1922, State Farm is the largest property and casualty insurer in the U.S., with a strong A+ rating from AM Best, a net worth of $145.2 billion, and over 96 million policies served.
- Pros of Choosing State Farm Home Insurance: State Farm offers below-average premiums, extensive local agent network, built-in coverage extras at no cost, and strong bundling discounts, making it a reliable and cost-effective choice for homeowners.
- Cons and Limitations: Despite its strengths, State Farm has slipped in claims satisfaction scores, offers limited discounts, has digital tools that lag behind competitors, and is not writing new policies in California, Massachusetts, or Rhode Island.
- Coverage Options and Cost: State Farm’s standard HO-3 policy covers essential areas like dwelling, personal property, and liability, with added extras like inflation guard included; average premium is around $2,133 annually for $300K coverage, lower than the national average.
- Customer Service, Claims, and Digital Experience: State Farm’s wide agent network ensures personal service, but its digital tools are basic, and claims satisfaction scores have declined, with some ongoing investigations into wildfire claims affecting reputation.
State Farm Home Insurance Overview
Homeowners insurance premiums climbed an average of 10.4% nationally in 2024, with 34 states seeing double-digit increases. Finding an insurer that balances affordable pricing with reliable coverage matters more than ever. State Farm is the largest property and casualty insurer in the United States and has been around since 1922, but does its size translate into value for today’s homeowners?
Founded by retired farmer George J. Mecherle in Bloomington, Illinois, State Farm operates as a mutual company, meaning it’s technically owned by its policyholders rather than shareholders. Today, the company serves over 96 million policies and accounts through more than 19,200 agent offices and 65,000 employees. It holds an A+ (Superior) rating from AM Best (downgraded from A++ in November 2025 due to elevated loss ratios) and ranks No. 36 on the Fortune 500 with a net worth of $145.2 billion as of year-end 2024.
After looking at State Farm’s coverage options, pricing data, claims satisfaction scores, customer feedback, and digital tools, we think it’s a strong choice for homeowners who want below-average premiums from a financially rock-solid insurer with local agent support. That said, its claims satisfaction scores have slipped, its discount options are limited compared to competitors, and it’s no longer writing new policies in three states.
Pros and Cons
Pros
- Below-average pricing: Average premium of ~$2,133/yr for $300K dwelling vs. the national average of ~$2,584, or roughly 17% cheaper.
- Exceptional financial strength: A+ (Superior) AM Best rating (downgraded from A++ in late 2025, but still among the industry’s strongest), Fortune 500 company, $145.2 billion net worth.
- Valuable built-in coverage: Inflation guard, extended replacement cost (20% above policy limit), and personal property replacement cost are all included at no extra charge. Many competitors charge extra for these.
- Largest agent network in the country: 19,200+ agent offices means face-to-face service is available in nearly every community.
- Strong bundling discount: Up to 25% off when you bundle home and auto, which is among the most generous in the industry. That can mean savings of over $1,000/yr.
- High customer loyalty: 93.4% renewal rate and 89.4% trust score, first among ranked companies (excluding USAA).
Cons
- Below-average claims satisfaction: J.D. Power claims score of 661/1,000 falls below the industry average of 682. Only 30% of claimants report being completely satisfied with the resolution.
- Limited state availability for new customers: Not writing new homeowners’ policies in California, Massachusetts, or Rhode Island.
- Few discount options: Only about four named discount categories, compared to the wider variety offered by Allstate, Nationwide, and others.
- Digital tools lag behind: The mobile app handles basics but can’t track claims well, and policy changes still require calling your agent. J.D. Power has flagged this as below industry leaders.
- Rising complaints: NAIC complaint volume for home insurance trended upward in 2024, and State Farm is not BBB-accredited, with a 1.18/5 BBB customer review score driven by claims-related frustrations.
Coverage Options
Standard Coverage
State Farm’s standard homeowners policy (HO-3) includes the six core coverage types you’d expect from any major insurer. What sets State Farm apart is what’s included at no additional cost:
Coverage Type | What It Covers | Notable Details |
Dwelling (A) | Your home’s structure, walls, roof, built-in appliances, and attached structures | Includes extended replacement cost: pays up to 20% above your policy limit if rebuilding costs exceed your coverage |
Other Structures (B) | Detached garages, sheds, fences, docks, greenhouses | Typically set at 10% of dwelling coverage |
Personal Property (C) | Furniture, clothing, electronics, and other belongings | Replacement cost coverage included (not just depreciated value) |
Loss of Use (D) | Additional living expenses if your home is uninhabitable | Covers temporary housing, meals, and other necessary expenses during repairs |
Personal Liability (E) | Lawsuits for bodily injury or property damage you cause | Standard limits start at $100,000; they can be increased |
Medical Payments (F) | Medical bills for guests injured on your property | No-fault coverage pays regardless of who caused the injury |
Built-In Extras
Several features that other insurers charge extra for come standard with State Farm:
- Inflation guard: Automatically adjusts your coverage annually to keep pace with rising construction costs.
- Extended replacement cost: Pays up to 20% above your dwelling coverage limit if that’s what it takes to rebuild after a major loss.
- Personal property replacement cost: Reimburses you for the cost of new replacements, not depreciated value.
- Energy-efficient upgrades: Will pay up to 150% of your expenses if you upgrade damaged systems to energy-efficient alternatives.
Add-Ons and Endorsements
State Farm offers a focused set of endorsements to extend your coverage:
- Water/sewer backup coverage: Covers damage from backed-up sewers and drains. This is one of the most common and costly homeowner claims not covered by standard policies.
- Service line coverage: Pays for repairing or replacing buried utility lines (water, gas, electric, sewer) on your property.
- Home systems protection (equipment breakdown): Covers sudden and accidental breakdown of home systems like HVAC, water heaters, and electrical panels. Standard policies don’t cover these.
- Identity theft/fraud protection: Can be added to your homeowners policy for an annual fee.
- Scheduled personal property: For high-value items like jewelry, art, or collectibles that exceed standard sub-limits.
- Earthquake insurance: Available as an endorsement or separate policy, depending on your state.
- Flood insurance: Available through the National Flood Insurance Program (NFIP). Not included in any standard homeowners policy.
What’s Not Covered
Like all standard homeowners’ policies, State Farm does not cover flood damage, earthquake damage (unless added), normal wear and tear, pest infestations (termites, rodents, insects), mold resulting from negligence, or damage from settling, deterioration, or contamination. Business liability and vehicle-related damage are also excluded.
Pricing and Cost
State Farm consistently prices below the national average for homeowners insurance, making it one of the more affordable options among large national carriers.
Coverage Level | State Farm Avg. | National Avg. | Difference |
$300K dwelling | ~$2,133/yr | ~$2,584/yr | 17% below average |
$250K dwelling | ~$2,454/yr | Varies | Below average |
$1M dwelling | ~$7,048/yr | Varies | Competitive for high-value |
Of course, your actual premium depends on several factors:
- Location: Premiums vary dramatically by state. Florida averages $7,136/yr while Hawaii averages just $659/yr for a $300K dwelling. Your specific ZIP code, proximity to the coast, and local catastrophe risk all play a role.
- Home characteristics: Age, construction type, square footage, and roof material/age all affect your rate. Newer homes and impact-resistant roofs can mean lower premiums.
- Credit-based insurance score: Used in most states (exceptions include California, Hawaii, Massachusetts, and Maryland). A higher score generally means lower premiums.
- Claims history: Your personal claims history over the past 3–5 years, as well as prior claims on the property itself, can affect your rate.
- Coverage choices: Higher coverage limits and lower deductibles increase your premium. State Farm offers deductibles ranging from $500 to $2,500+ in flat dollar amounts, as well as percentage-based deductibles (1–5%) for wind/hail in some states.
Discounts and Savings
State Farm’s discount lineup is narrower than some competitors’, but the discounts it does offer are generous, particularly its bundling discount.
Discount | Estimated Savings | Details |
Multi-policy bundling (home + auto) | Up to 25% | Among the most generous bundling discounts in the industr,; potential savings of $1,000+/yr for many customers |
Claims-free | Varies | Discount for maintaining a claim-free history over a specified period |
Home alert / protective devices | Varies by state | Discounts for fire/burglar alarms, monitored security systems |
Automatic sprinkler system | Varies by state | Discount for homes with indoor automatic fire sprinklers |
Impact-resistant roof | Varies by state | Discount for qualifying impact-resistant roofing materials |
Wind-resistant construction | Varies by state | Available if your home meets specific wind-resistant building standards |
Utilities upgrades | Varies | Discount for updating home utilities with a qualified contractor |
One thing to know: State Farm does not offer a new home discount, which competitors like Allstate and others provide. If you’re insuring a newly built home, you may find better discount stacking elsewhere.
Claims Experience
The Data
Claims are where State Farm’s numbers get less flattering. The company scores well on overall customer satisfaction, but its claims-specific metrics have slipped:
- J.D. Power Property Claims Satisfaction: 661/1,000 in 2025, below the industry average of 682. That’s a real drop from prior years when State Farm scored above average.
- NAIC complaints: Complaints about State Farm’s home insurance line trended upward in 2024. The company draws a roughly average proportion of complaints relative to its size, though the trend is heading in the wrong direction.
- BBB: Not BBB-accredited. Customer reviews on BBB average 1.18/5, with recurring complaints about claim denials, slow processing, and communication breakdowns. (Note: BBB reviews skew negative across the insurance industry, as satisfied customers rarely leave reviews.)
- Claim satisfaction: Only 30% of State Farm claimants report being completely satisfied with how their claim was resolved, compared to 67% at Amica (the highest scorer).
How to File a Claim
State Farm provides multiple channels for filing a homeowners’ claim:
- State Farm mobile app
- Online at statefarm.com/claims
- Call 1-800-SF-CLAIM (1-800-732-5246)
- Text “CLAIM” to 62789 for a filing link
- Contact your local State Farm agent directly
After filing, a claim associate will typically contact you within a few days. State Farm supports video calls with claim representatives, electronic photo and document submission, and digital tracking, though in-app claim tracking has been flagged as limited by reviewers.
Catastrophe Response
State Farm operates the largest catastrophe response team and fleet in the insurance industry. During major events, the company pre-deploys teams to affected areas, sets up Catastrophe Customer Care sites in impacted communities, and can provide advance payments on claims for immediate needs like temporary housing and food.
In January 2026, State Farm received over 13,200 claims following a widespread winter catastrophe across the central and southern U.S. In 2024, the company mobilized response teams for multiple tornado outbreaks and Hurricane Milton. The California Department of Insurance also launched a formal investigation in June 2025 into how State Farm handled smoke damage claims from the Eaton and Palisades wildfires, which is still ongoing.
Customer Service and Digital Experience
Agent Network
State Farm’s biggest advantage on the service side is its captive agent model. With 19,200+ agent offices nationwide, it’s the largest insurance agent network in the country. These are dedicated State Farm agents (not independent brokers), so they know State Farm’s products inside and out. If you prefer a personal relationship with a local agent you can visit in person, State Farm is hard to beat.
Customer satisfaction data supports this: 89.9% of customers rate State Farm highly for overall satisfaction, 89.4% say they trust the company (first among ranked companies, excluding USAA), and 93.4% plan to renew.
Mobile App and Online Tools
The State Farm mobile app covers the basics: viewing policy details, making payments, accessing digital ID cards, and filing claims. But J.D. Power has noted that State Farm’s digital tools “lag behind industry leaders.” The main gaps are limited in-app claims tracking and the need to call your agent for policy changes or detailed claim information.
If you want a fully digital, self-service experience, USAA, Lemonade, and Allstate all have more capable apps. State Farm’s app works best as a complement to your agent relationship, not a replacement for it.
Financial Strength
State Farm’s financial position is among the strongest in the industry. For homeowners’ insurance, financial strength matters because it determines whether your insurer can actually pay claims after a catastrophic event when thousands of policyholders are filing at once.
- AM Best Financial Strength Rating: A+ (Superior), the second-highest possible rating
- Fortune 500 ranking: No. 36 (2025)
- Net worth: $145.2 billion (year-end 2024)
- Mutual company: Owned by policyholders, not shareholders
- Market share: ~19.4% of homeowners’ direct premiums written (largest in the U.S.)
- In business for over 100 years (founded in 1922)
Who Is State Farm Good For?
Best For
- Homeowners who want below-average premiums from a financially strong national insurer. If you want a safe, cost-effective default choice, State Farm delivers.
- Customers who value a local agent relationship. If you want someone you can sit down with to review your policy, State Farm’s 19,200+ offices make that possible in most communities.
- Bundlers. If you already have State Farm auto insurance (or are willing to switch), the bundling discount of up to 25% can save you over $1,000 per year.
- Homeowners in moderate-risk areas who want solid standard coverage with useful built-in extras like inflation guard and extended replacement cost at no additional charge.
Not Ideal For
- Homeowners in California, Massachusetts, or Rhode Island. State Farm isn’t writing new policies in these states.
- Customers who prioritize a fully digital, self-service insurance experience. If you want to manage everything from an app without calling an agent, consider USAA (if eligible) or Lemonade.
- Discount maximizers. If you want to stack multiple discounts (new home, smart home devices, loyalty tiers), Allstate and Nationwide offer more variety.
- Homeowners in high-risk catastrophe zones who want the very best claims experience. State Farm’s below-average J.D. Power claims score and the ongoing California wildfire investigation may give pause.
How to Get a Quote
State Farm offers three ways to get a homeowners insurance quote:
- Online at statefarm.com (available 24/7)
- By calling 1-800-STATE-FARM (1-800-782-8332)
- Through a local State Farm agent (find one at statefarm.com/agent)
To get an accurate quote, have the following ready:
- Your property address and the year your home was built
- Square footage, number of stories, and construction type (frame, brick, etc.)
- Roof material and the age of your roof
- Current insurance policy details (if switching from another provider)
- Desired coverage amounts and deductible preference
- Information about security systems, fire alarms, or other protective devices
How State Farm Compares
State Farm | Allstate | USAA | |
Overall Rating | 4.0 / 5 | 4.0 / 5 | 4.5 / 5 |
Avg. Annual Premium ($300K) | ~$2,133 | ~$1,958 | ~$1,548 |
AM Best Rating | A+ (Superior) | A+ (Superior) | A+ (Superior) |
J.D. Power Home Insurance | 657 / 1,000 | Above average | Above average |
Bundling Discount | Up to 25% | Up to 25% | Up to 10% |
States Available | 48 + D.C. | 49 (not CA) | All 50 |
Eligibility | Anyone | Anyone | Military only |
Best For | Budget + agent access | Discounts + green coverage | Military families |
State Farm vs. Allstate
Both are big national carriers with competitive pricing, but they differ in a few ways. Allstate scores higher on customer satisfaction, offers more discount categories (including a new home discount State Farm lacks), and has a stronger digital experience. State Farm comes back with cheaper base rates, a larger agent network, and more generous built-in coverage extras. If you want more customization and discount stacking, Allstate has the edge.
State Farm vs. USAA
If you’re eligible for USAA (military members and their families), it’s generally the better option. USAA scores at or near the top in every satisfaction category, offers competitive pricing (~$1,548/yr avg.), and provides military-specific benefits like coverage for uniforms and equipment. The catch is that USAA is limited to military-affiliated households. For everyone else, State Farm is the more accessible alternative with similar pricing and broader agent support.
Final Verdict
State Farm earns a 4.0 out of 5 in our review. It’s still one of the most reliable choices in homeowners insurance: below-average premiums (~17% cheaper than the national average), a top-tier financial strength rating (A+ from AM Best), and the largest agent network in the country. If you value stability, affordability, and personal service, it’s a strong pick.
The best reason to go with State Farm is the overall package: a trusted, century-old insurer with competitive pricing, useful built-in coverage extras (inflation guard, extended replacement cost, personal property replacement cost), and an agent you can actually sit down with in your community. The bundling discount of up to 25% off when you pair home and auto makes the deal even better.
On the other hand, State Farm’s J.D. Power claims satisfaction score (661) has slipped below the industry average (682), and only 30% of claimants report being completely satisfied with their resolution. The NAIC complaint trend is going the wrong way. The digital tools are functional but behind the curve compared to more tech-forward competitors. And if you’re in California, Massachusetts, or Rhode Island, State Farm isn’t writing new policies.
If State Farm sounds like the right fit, get a free quote at statefarm.com or through a local agent to see your personalized rate. If you’re currently with another insurer, comparing your existing coverage and premium against State Farm’s offering takes about 15 minutes and could save you hundreds per year, especially if you bundle.
Our Methodology
This review is based on a weighted scoring system across six categories: coverage options (25%), pricing and value (20%), claims experience (20%), customer service (15%), discounts and savings (10%), and digital experience (10%).
Frequently Asked Questions
Answers to your questions about State Farm home insurance.
Yes. State Farm ranks among the top homeowners insurers in the U.S. Below-average pricing, an A+ financial strength rating, and the largest agent network in the country make it a strong choice for most homeowners. The main downsides are its below-average claims satisfaction score and limited digital tools.
State Farm is one of the most established and financially secure insurance companies in the United States. Founded in 1922, it has been in continuous operation for over 100 years. It’s the largest property and casualty insurer in the country, holds a top-tier A+ (Superior) financial strength rating from AM Best, ranks No. 36 on the Fortune 500, and carries a net worth of $145.2 billion. As a mutual company, it’s owned by its policyholders rather than shareholders. It is licensed and regulated by insurance departments in every state where it operates. State Farm is about as legitimate as an insurance company gets.
State Farm’s average annual premium is approximately $2,133 for $300,000 in dwelling coverage, which is about 17% below the national average of ~$2,584. However, your actual rate depends on your location, home characteristics, claims history, credit-based insurance score, and coverage choices. State Farm also offers one of the most generous bundling discounts in the industry (up to 25% when combined with auto insurance), which can further reduce your total cost.
Flood damage is excluded from all standard homeowners’ insurance policies, including State Farm’s. However, State Farm agents can help you purchase a separate flood insurance policy through the National Flood Insurance Program (NFIP) if your community participates. Given that just one inch of floodwater can cause over $25,000 in damage, flood coverage is worth considering even if you’re not in a designated high-risk flood zone.
You can file a claim through the State Farm mobile app, online at statefarm.com/claims, by calling 1-800-SF-CLAIM (1-800-732-5246), by texting “CLAIM” to 62789, or by contacting your local agent. File as soon as possible after discovering damage, document everything with photos and receipts, and make temporary repairs to prevent further damage (save those receipts, too, since they may be reimbursed). A claim associate will typically contact you within a few days.
Yes, and it’s one of the best reasons to go with State Farm. The bundling discount is up to 25% for home and auto together, which can mean savings of over $1,000 per year. You can also bundle homeowners with life insurance, renters, or condo policies for additional savings.
