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State Farm Homeowners Insurance in 2025 – How Does It Stack Up?
July 1, 2025
State Farm is not only the largest homeowners insurance company in the U.S. – with about 18% market share – but also one of the most established (founded 1922). Millions of homeowners trust State Farm for its strong financial stability (AM Best rated A++ superior) and extensive network of 19,000+ local agents ready to provide personal service. In fact, State Farm consistently ranks among the top home insurers for customer satisfaction. This 2025 review will break down State Farm’s coverage features, costs, discounts, and how it stacks up – so you can decide if it’s the right choice to protect your home.
Coverage and Policy Features
Standard coverage
State Farm’s homeowners policies cover all the basics you’d expect – your house (dwelling), other structures (like a detached garage or shed), personal belongings, loss of use (additional living expenses if you can’t stay in your home during repairs), personal liability, and guest medical payments. In other words, a standard State Farm policy can pay to rebuild your home and replace your things after covered disasters, as well as shield you financially if someone is injured on your property. Like most insurers, State Farm’s home policies exclude certain perils (you’d need separate policies for floods or earthquakes) and have sub-limits for high-value items like jewelry or fine art.
Built-in benefits
One area where State Farm shines is in its generous built-in coverage. Notably, State Farm automatically includes an “Increased Dwelling Limit” – essentially an extended replacement cost benefit that will pay up to 20% above your policy limit if that’s what it takes to rebuild your home after a major loss. Many competitors charge extra for this kind of extended dwelling coverage, but State Farm generally includes it at no charge. State Farm also typically includes replacement cost coverage for your personal belongings (so if items are destroyed, you’re reimbursed for new replacements, not depreciated value). These perks give homeowners added peace of mind that they won’t be caught underinsured if costs run higher than expected.
Optional add-ons
Homeowners can customize a State Farm policy with a long list of endorsements and upgrades. For example, you can add water backup coverage (for sewer or sump pump backups), service line coverage (underground utility lines), or equipment breakdown coverage to protect major appliances and home systems. Other options include identity theft restoration, higher limits for valuables (jewelry, etc.), earthquake coverage, ordinance or law coverage to handle upgraded building codes, and even coverage for home-based businesses or short-term rentals. In short, State Farm offers plenty of ways to tailor your policy to your needs.
Unique perks
State Farm has rolled out some innovative perks in certain states. For instance, eligible policyholders in select areas receive a free Ting smart device that monitors your home’s electrical network to prevent fires, or a free ADT smart home security system (with discounted monitoring) – initiatives aimed at loss prevention. In wildfire-prone states like California, State Farm even provides free wildfire defense services to help protect homes. These value-adds, while not available everywhere, show how State Farm leverages its size to offer extra protection benefits to customers.
Rates and Discounts
Average cost
The price of State Farm homeowners insurance is generally middle-of-the-pack – not the cheapest on the market, but not the most expensive either. According to analysis, State Farm’s average premium is about $2,170 per year for a $300,000 dwelling coverage policy. This is only slightly above the national average (~$2,110/year) for similar coverage. In comparison to a major competitor, State Farm’s average rate ($2,185) came in lower than Allstate’s ($2,380) for the same coverage amount. Of course, premiums vary widely by state and individual home characteristics – but overall, State Farm’s rates tend to be competitive and close to industry averages.
Bundling and big savings
One of State Farm’s standout discounts is its multi-policy discount for bundling home and auto insurance. Homeowners who also insure their car with State Farm can save around 20–25% on their homeowners premium on average. In fact, State Farm advertises that bundling could knock off up to about $1,200 per year in savings for some customers. This bundling discount (often on the order of ~25% off) is among the highest in the industry, making State Farm especially appealing if you’re looking to combine policies under one roof.
Other discounts
Beyond bundling, State Farm’s home insurance discounts are relatively limited. You won’t see a long menu of quirky discounts as with some competitors. However, State Farm does offer a few ways to lower your bill. A big one is the new home discount – if your house is newly built, the discount can be substantial. There are also modest discounts for home safety upgrades: having protective devices like smoke alarms, burglar alarms, fire sprinklers, or an impact-resistant roof can trim a few percent off your premium. Longtime customers may earn a small loyalty discount over time, and going claim-free can help keep your costs down. While State Farm doesn’t advertise as many niche discounts as some rivals (you won’t find things like “new homebuyer” or “nonsmoker” discounts prominently listed), its base rates and major discounts (like bundling) often still make it a cost-effective choice for a broad range of homeowners.
Customer Experience and Satisfaction
Local agent service
A hallmark of State Farm is its agent-centric model. With thousands of exclusive agents nationwide, customers can get one-on-one help from a local representative who understands their needs. If you prefer a personal touch and guidance from a real person, State Farm delivers – its agents are known for providing friendly, neighborly service and support with claims or coverage questions. This focus on human interaction is reflected in high customer satisfaction ratings. In a 2025 national survey, nearly 90% of State Farm customers reported being happy with their service, and 86% would recommend State Farm to others – some of the best scores among major insurers.
Digital tools
Despite its old-school agent network, State Farm isn’t stuck in the past. The company has invested in a user-friendly website and mobile app, allowing policyholders to get quotes, purchase a policy, pay bills, and even file and track claims online without ever speaking to an agent if they prefer. This hybrid approach (digital convenience plus available agent help) appeals to a broad range of customers. Tech-savvy homeowners can handle everything electronically, while those who value face-to-face service have that option as well.
Claims & reliability
State Farm has the financial strength to pay claims. When it comes to claims satisfaction, State Farm performs decently, though not always #1. It scored 661 out of 1,000 in J.D. Power’s latest Property Claims Satisfaction Study. In practice, most customers do find State Farm’s claims process smooth – about 80% of surveyed State Farm homeowners said they were satisfied with how their claim was handled. The company also has fewer consumer complaints than expected for a company its size, according to NAIC data – a positive indicator of overall customer care. Individual experiences can vary, but on the whole State Farm is regarded as a dependable, trustworthy insurer for paying claims when it counts.
Overall Pros and Cons
To summarize the customer experience, here are the key upsides and downsides of State Farm homeowners insurance:
- Pros: Strong coverage included (extended rebuild coverage and replacement cost on contents at no extra charge); well-established, financially solid company; excellent network of agents for personal service; easy online tools for quotes and claims; generally high customer satisfaction and loyalty rates.
- Cons: Limited discounts beyond bundling and new home credits; not writing new home insurance policies in a few states; premiums are around average – often reasonable, but if you have an ultra-tight budget or unusual situation, another niche insurer might quote lower. Additionally, because State Farm sells through captive agents, you won’t be able to get State Farm quotes via third-party comparison sites or independent brokers.
Frequently Asked Questions (FAQs)
Is State Farm a good homeowners insurance company?
Yes, State Farm is widely considered a good homeowners insurer, even ranking #2 among national companies in one 2025 expert survey. It earns high marks for customer satisfaction and retention, offers solid coverage, and has top-tier financial strength. While no insurer is perfect for everyone, State Farm’s strong reputation and large market share speak to its reliability.
Does State Farm homeowners insurance cover flood or earthquake damage?
No, standard State Farm home policies do not cover flooding or earthquakes – these perils are excluded. You would need to purchase separate flood insurance or an earthquake endorsement/policy for those specific risks. This is true of virtually all homeowners insurance companies, not just State Farm.
How much does State Farm homeowners insurance cost on average?
On average, State Farm’s home insurance costs about $2,100–$2,200 per year for a typical home. This is roughly on par with the U.S. national average. Your own rate could be higher or lower depending on your home’s location, age, construction, coverage amounts, deductible, and other personal rating factors. It’s always wise to get a personalized quote.
Can I buy a State Farm homeowners policy online?
Yes – State Farm allows online quotes and purchase for homeowners insurance in most cases. You can get a quote on the State Farm website, customize your coverage, and buy the policy without ever talking to an agent (if you choose). Of course, an agent is available to help or answer questions, but the online option makes it convenient for those who prefer a digital experience.
Is State Farm offering home insurance in California now?
No, as of 2023 State Farm has paused new homeowners insurance sales in California. Due to wildfire-related losses, they stopped accepting new home insurance applications in that state (existing customers weren’t affected). They have also ceased new sales in MA and RI. Availability could change in the future, but currently Californians will need to choose a different insurer for new home policies.
Conclusion
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State Farm homeowners insurance is a strong all-around choice for many homeowners – especially those who value a blend of robust coverage and personalized service. With its comprehensive standard protections and the backing of a friendly local agent, State Farm offers peace of mind that your home is in good hands. While it may not always have the absolute lowest price or the flashiest list of discounts, the company’s reliability and included coverage features provide solid value for the cost.
If you’re looking for a well-established insurer with generous coverage perks and a human touch, State Farm should be on your shortlist. And as always, it’s smart to compare quotes from multiple companies to ensure you’re getting the best deal and coverage for your needs – tools like Kudos can help you quickly evaluate top carriers and even uncover hidden perks, making your decision that much easier.
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