State Farm Homeowners Insurance Review 2025: Pros, Cons, and Alternatives

Founded in 1922, State Farm has long been a household name in the insurance industry, garnering a trusted reputation among consumers. Its base policy also includes coverages that competitors may not offer in theirs.

Although a popular choice, it does have its drawbacks. State Farm doesn’t sell its products through insurance brokers, who can help you compare quotes from different companies for you. Its advertised discount menu is also short, which limits the amount of savings you can get.

When Business Insider compared State Farm to the best homeowners insurance companies, it found the company to be a top choice due to its high levels of customer satisfaction. Read on to learn more about State Farm’s coverages, costs, and company ratings and reviews.

State Farm Homeowners Insurance Pros and Cons

State Farm Homeowners Insurance Pros

• Nationwide presence
• Highly rated for customer satisfaction by JD Power
• Base policy includes extended dwelling and building ordinance coverage

State Farm Homeowners Insurance Cons

• High volume of complaints with the NAIC
• Limited discounts compared to the competition
• Policies can only be purchased through captive agents

State Farm Homeowners Insurance Overview

State Farm is a great option for most homeowners. It has affordable prices and lots of coverage options to customize your coverage. You’ll also find that its standard insurance policy may already include extended dwelling cost and building and law ordinance coverage, which other companies may charge extra for.

In addition, the company has excellent ratings with JD Power for its customer service. This is also true for its car insurance products. So, if you’re looking to maximize your savings with its bundling discount, State Farm could be an attractive option.

One thing to note is that State Farm only sells its policies through captive agents. While these agents are typically skilled and knowledgeable in State Farm policies, they aren’t able to compare quotes for you. So, it's a good idea to do so yourself before purchasing your State Farm policy.

State Farm Homeowners Insurance Plans and Coverage

Farm Homeowners Insurance customers can shop for homeowners insurance plans tailored to various living situations and different types of dwellings, including single-family residences, condominiums, two- to four-unit buildings, rental properties, manufactured homes, and farms and ranches. However, at the time of this review, we were advised State Farm cannot insure buildings with more than four units.

Below is an overview of the main insurance policies that State Farm offers for your property.

Homeowners Insurance (HO-3)

With State Farm, you’ll find the standard homeowners insurance coverages. A basic policy also goes above and beyond to offer complimentary coverages that many of its competitors may not include.

Here's a look at the types of coverage in a standard State Farm homeowners insurance policy:

• Dwelling: This part of your homeowners insurance policy covers the cost to rebuild your home and any attached structures, such as your garage.
• Other structures: If any detached structures, such as your shed or gazebo, sustain damage due to a covered peril. If you have, for example, a building used for business or rental purposes, discuss the extent of your coverage with your State Farm agent.
• Personal property: Your home insurance policy can cover repairs or replacement for damaged or stolen belongings. Since the cost of furniture, clothing, appliances, and other personal items adds up quickly. Many experienced property and casualty insurance agents recommend coverage limits of $100,000 for condos and $300,000 for single-family residences.
• Loss of use: If you need to make alternative accommodations, such as hotel stays and meals, your policy can cover additional expenses incurred due to significant claims. Loss of use helps families balance their housing costs, avoiding the strain of additional costs. Some investment properties may also use this to cover lost rent. Note that you'll still be responsible for all home-related costs, such as taxes and mortgage payments, while your home is being rebuilt.
• Personal liability: This part of your insurance covers legal expenses and damages from lawsuits brought against you by someone injured while on your property. Keep in mind, this does not cover issues of neglect. At the time of this review, State Farm is among insurers without breed restrictions, saying, "it's not the breed, it's the dog." Full disclosure regarding your dogs is still essential, as improper disclosure could lead to claims being denied later.
• Medical payments: Your policy may cover medical expenses for those injured while on your property. A State Farm agent can give you specific examples that might apply to you if you're confused.
• Increased dwelling: Unlike many insurers, State Farm automatically provides 20% extended dwelling coverage if your repair costs exceed the current market value of your home.
• Ordinance and law coverage: This coverage pays 10% extra for charges related to bringing your home up to code after a loss covered under your policy. You typically have to pay an extra premium with other insurers, but State Farm includes it in your policy for no additional cost.

Additional Coverage Options (Riders) Offered by State Farm Homeowners Insurance

State Farm offers many optional coverages to customize your policy and enhance your protection. Remember, coverages, exclusions, availability, and claim limits will differ by state. So it’s important to discuss the specifics with a State Farm agent before buying coverage.

Here’s an overview of the additional coverages the company currently offers:

• Water backup: Covers damages caused by a clogged sewer or sump pump overflowing
• Home systems protection: Protects your appliances, such as your refrigerator, water heater, or air conditioner
• Business property: Incidental coverage for people who work from home to protect items like laptops and office equipment.
• Landscaping: Pays the cost of replanting trees, shrubs, and other vegetation after a covered loss.
• Earthquake: Provides coverage for damage due to earthquakes
• Identity theft restoration: Covers identity fraud, cyber attacks, and cyber extortion claims
• Green improvement reimbursement: Replaces damaged appliances or home components with more energy-efficient alternatives after a covered loss
• Personal articles policy: Offers extra protection for your valuables that exceed your standard policy’s limits
• Loss assessment: Pays your portion of repair or damage costs if your HOA charges members for a covered loss not fully paid by its insurance
• Service line: Helps repair or replace underground utility lines damaged by issues such as tree root intrusion, corrosion, or normal wear and tear—risks typically excluded from standard home policies
• Roof surfaces payment schedule: Covers roof damage caused by wind or hail up to its depreciated value based on age and material.
• Matching of undamaged roof surfacing: Pays to match undamaged roof sections when exact materials aren’t available after a covered loss

Renters Insurance (HO-4)

State Farm renters insurance offers the standard coverages, including personal property, loss of use, liability, and medical payments to others. Unlike home insurance, you don’t have to buy coverage for your dwelling, as your landlord’s insurance should cover your building’s structure.

At an extra cost, its renters policy allows you to enhance your policy to cover:

• Reward payment for information leading to an arson conviction
• Rebuilding costs from structural collapse
• Credit card forgery and other unauthorized financial transactions
• Debris removal after covered damage
• Emergency response fee for using fire department services
• Lock replacement after theft
• Damage from a power interruption
• Protection for belongings temporarily removed elsewhere
• Food spoilage from power failures
• Temporary repairs to prevent further damage
• Landscaping damage from covered perils
• Damage caused by volcanic activity
• The cost of providing first aid to injured people
• Legal costs after a covered claim
• Property damage you cause to others accidentally

Condo Insurance (HO-6)

The standard State Farm condo insurance covers your personal property, loss of use, liability, and guest medical payments. It also helps you pay for damages to unit additions and permanent installations (building property coverage) and your share of the cost charged by the association for covered losses (loss assessment coverage).

You can also buy additional coverages for:

• Protection against structural collapse
• Credit card, forgery, and other unauthorized transactions
• Damage you cause to others’ property
• Debris removal after covered damage
• Fire department emergency response fees
• Cost incurred for providing first aid to others
• Protection against inflationary costs
• New locks after your keys have been stolen
• Food spoilage from power failures
• Temporary repairs to prevent further damage
• Landscaping damage from specific perils
• Protection from volcanic damage
• Damage caused by renters

Manufactured Home Insurance (HO-7)

State Farm offers dwelling, personal property, loss of use, liability, and guest medical payments coverage for your manufactured or mobile home.

You can also customize your policy with riders that cover:

• Property damage you cause to others
• First-aid expenses you incur from others
• The full repair of your home without depreciation
• Fraud recovery assistance
• Slander and defamation lawsuits
• Damage from earthquakes

State Farm Homeowners Insurance Cost

The cost of State Farm Homeowners insurance is $1,586 per year or $132 per month, but your actual rates can vary widely. Factors that influence your rates include your location, home details and features, as well as personal factors such as your claims and credit history.

Note: We requested a quote for a $395,000 home in New Mexico, built in 2018 and owned by a 38-year-old with good credit. We selected New Mexico for its average home insurance costs and chose age 38 to reflect the typical first-time homebuyer.

State Farm Homeowners Insurance Discounts

State Farm doesn’t advertise as many discounts as its competitors, but you can qualify for most discounts by having safety and mitigation features. Here are the discounts that State Farm offers:

• Multi-policy: Save when you bundle your home and auto insurance.
• Home security: Qualify for a discount if you have fire, smoke, burglar alarms, or other monitoring systems.
• Roof: If your roof is made of impact-resistant materials, you may be eligible for lower rates on your policy.
• Wind mitigation: If your own meets eligible building codes or roof standards, you can save on your policy.
• Wildfire mitigation: If you’re a California homeowner, you can qualify for this discount if your home meets wildfire safety standards.

Note: Certain types of discounts are available in select states. To find out what saving opportunities you’re eligible for, it’s best to speak to a local State Farm insurance agent.

How to Purchase and Manage a State Farm Homeowners Insurance Policy

You can purchase a State Farm homeowners insurance policy by getting a quote from their website. It’s a good idea to keep the following pieces of information on hand to speed up the process:

Home details

• Address
• Square footage
• Number of stories
• Year built
• Roof age
• Is it your primary or secondary home? If not, the number of weeks occupied per year.
• Special features (e.g., fireplace, burglar/fire alarms, sprinkler systems, etc.)
• Distance and accessibility to the nearest fire service
• Is your home inside or outside city limits?
• Other structures on the property
• Number of full-time residents

Policyholder info

• Full names and birthdates

• Social Security number (optional)

  Phone number and email

• Last Insurance Provider and the dates of Prior Coverage
• Any losses (insured or not) in the past 5 years?

Coverage preferences

• Desired start date
• Coverage types and limits
• Deductibles (all perils and wind/hail)

Once you purchase your policy, you get access to your State Farm online account and mobile app. On your digital account, you can:

• Manage your policies
• File and track claims
• View ID cards
• Upload photos and documents
• Contact your insurance agent

Note: State Farm homeowners insurance plans are available nationwide, except in California, where the insurer has just stopped offering new coverage.

How to File a Claim with State Farm Homeowners Insurance

Your State Farm homeowners insurance agent can assist you anytime during the claims process in person or over the phone at 800-732-5246. State Farm's personalized touch is particularly beneficial for those who are less tech-savvy.

You can also file claims through your online account or mobile device. To do so, you'll select the type of insurance claim you're filing and log in to your account.

After that, you'll be prompted to provide the following information in the claim form and any photos of the damage:

• Date and time of the incident
• Property involved
• Location of incident
• Policyholder's contact information
• Cause of damage
• Injury details (if any)

It can take anywhere from a couple of days to a few months for State Farm to settle your claim. The actual time it takes depends on the complexity of your case, the volume of claims received by homeowners at the same time (e.g., during catastrophes), and the laws in your state, according to Policygenius.

State Farm Homeowners Insurance Customer Reviews and Ratings

State Farm received numerous negative reviews. This is standard amongst top insurance companies, but State Farm’s customer ratings were slightly better than those of its competitors. Many users express frustration with the company’s slow response times and denied claims for roof damage. Some policyholders have praised its representatives for their professionalism and helpfulness.

Your experience may differ based on your insurance agent. A good way to ensure a satisfactory claims process is to understand your coverages and have all your information prepared.

Here’s how the company scored with different review sites:

• Better Business Bureau: 1.23 out of 5
• Trustpilot: 1.5 out of 5
• Consumer Affairs: 1.8 out of 5

On the other hand, State Farm users are generally satisfied with its mobile app, which has received high ratings from both Google Play and the App Store.

• Google Play: 4.6 out of 5
• App Store: 4.8 out of 5

The table below shows State Farm's ratings from various third-party agencies:

State Farm Homeowners Insurance Alternatives

See how State Farm compares to three other options for home insurance coverage: Progressive, Lemonade, and Allstate.

State Farm vs. Progressive Homeowners Insurance

Progressive homeowners insurance and State Farm homeowners insurance offer reasonably similar coverage. For example, both companies cover the dwelling, other structures, personal possessions, loss of use, personal liability, and medical payments.

This said, Progressive advertises just two homeowners insurance riders: water backup damage and personal injury. State Farm's available riders are much more extensive, meaning if you're looking for more comprehensive coverage, you'll likely be better suited with a State Farm policy. However, Progressive's quoting options may be more convenient.

Progressive policies can be purchased online or through a broker agent who quotes different homeowners policies to help you compare companies. State Farm can only be quoted by State Farm agents, who conversely can only quote for State Farm. If you don't like one quote, a Progressive agent can do all the work for you instead of starting a new application.

Progressive Homeowners Insurance Review

State Farm vs. Lemonade Homeowners Insurance

Lemonade Homeowners Insurance is similar to State Farm's base policy. A State Farm can run quotes with no added riders, but it is unlikely to do so simply because each rider comes at a low cost with significant benefits. The cost of adding riders is negligible, with competing quotes offering water backup coverage for $3 to $20 per 12-month policy.

However, Lemonade misses a few of the riders offered by State Farm Homeowners Insurance, such as its identity theft protection and water backup damage riders. Lemonade also relies mainly on online quoting. So, seniors or less tech-savvy customers may need help managing policies and getting quotes with Lemonade.

Availability also varies. At the time of this review, Lemonade homeowners insurance is available in 29 states and the District of Columbia, while State Farm policies are available nationwide. Customers may not always receive the best coverage with Lemonade, as they may require more personalized support.

Often, customers looking to cut costs may opt for the base coverage with Lemonade, while a State Farm agent can answer questions and offer advice on why you may want to reconsider some choices. That being said, Lemonade might also offer more competitive pricing.

Lemonade Homeowners Insurance Review

State Farm vs. Allstate Homeowners Insurance

Allstate and State Farm homeowners insurance both rely on captive agents to quote insurance policies, although Allstate allows independent agents to sell their policies. So you get the personal touch of a company-trained agent running cost estimates, adding riders, and explaining certain choices to you. Allstate's base homeowners insurance policy may be more limited than State Farm's. If you're on a tight budget, your agent can also look for ways to stay within that budget without cutting essential coverages.

That said, Allstate does provide some optional coverage riders not available through State Farm. For example, Allstate offers the option to protect sports equipment and musical instruments, and another add-on for electronic data recovery.

In some states, we also received reports of State Farm being more flexible in its underwriting than Allstate. Of course, this may vary from state to state and in individual cases, as each company weighs the same factors differently. For example, one company might penalize a customer for a single claim, whereas others might be more concerned about bundling policies and the type of structure.

Allstate Homeowners Insurance Review

Why You Should Trust Us: What Went into Our State Farm Homeowners Insurance Review

Business Insider evaluated State Farm homeowners insurance using the following criteria:

• Pricing: We analyzed quotes using a sample buyer profile to assess affordability. However, price alone doesn’t tell the whole story. We also considered overall value, including added perks and available discounts that enhance the policy's worth.
• Coverage options: The ability to tailor your policy through optional coverages is key. We examined the range and flexibility of State Farm offerings to see how they stack up against other providers.
• Customer experience: By reviewing feedback from Trustpilot, Better Business Bureau, and ConsumerAffairs, we gauged how policyholders feel about State Farm’s service. We also compared these sentiments to those for competing insurers.
• Claims satisfaction: The ease and reliability of the claims process can make or break an insurance experience. We turned to JD Power ratings to evaluate how satisfied customers are with State Farm's handling of claims.
• Financial strength: We relied on AM Best ratings to judge State Farm’s financial health and its ability to pay out claims in both routine and catastrophic scenarios. An A++ rating reflects exceptional strength, while lower scores may indicate greater financial risk.

Read more about how Business Insider rates homeowners insurance.

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