State Farm Renters Insurance Review of 2023
Renters insurance provides protection for anybody who doesn’t own the property where they live.
Any renter should have enough coverage to protect them in the event that all their belongings are damaged, destroyed, or stolen, or someone is injured while in their rental apartment or home.
At PropertyNest, we know that buying renters insurance is a smart decision, but we also recognize that finding the right renters insurance company can be a challenge since you want to be sure that the company you choose is financially strong and will provide the coverage and service you need.
As one of the oldest and best-known insurance companies in the United States, State Farm has a solid reputation.
In this review, we’ll look at the company’s history, its renters insurance coverage, how it compares with other companies and the pros and cons of choosing State Farm as your renters insurance carrier.
State Farm Financial & Customer Service Ratings
There are several ways to evaluate any insurance company, but financial ratings are one of the most important metrics to use.
We like to look at financial ratings because they’re an indication of the company’s overall stability as well as their claims-paying ability, something which is essential for any policyholder.
A high rating is typically an indication that you can expect that any claim you may file will be investigated, verified, and paid quickly.
A strong financial rating also provides peace of mind because it’s unlikely that a highly-rated company will go out of business.
Customer service ratings are equally as important because financial strength won’t help you if you can’t get a representative on the phone to answer your questions or help you with a claim.
Here are the ratings for State Farm Insurance.
|J.D. Power (out of 1,000)||836|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||1.77|
The A.M. Best and S & P Global ratings indicate a high level of financial stability and strength.
The other ratings indicate that the company provides good customer service and has a lower than average volume of customer complaints when compared to other insurance companies.
Ratings aren’t the only thing to consider when researching renters insurance, but they are a helpful benchmark.
State Farm Renters Insurance Pros & Cons
- State Farm has no upper limit on property coverage, making it a good choice for renters with a lot of personal belongings.
- You can buy up to $1 million of personal liability coverage.
- You can choose medical expense coverage of up to $5,000.
- State Farm’s standard policy includes inflation coverage.
- State Farm’s average cost is $12, well below the national average.
- State Farm has well-reviewed customer service with fewer than the expected number of customer complaints.
- There are an array of add-on options, including cyber attack protection, earthquake coverage, and protection for business equipment.
- State Farm’s mobile app is free and user-friendly and can be used to get support and file and track claims.
- State Farm does not yet offer renters insurance in Rhode Island or Massachusetts.
- While there is no upper limit on renters insurance coverage, the lowest limit for property coverage is $10,000.
- There are only two renters insurance discounts available, fewer than most other companies offer.
- Some policy add-ons may require you to get a quote through a State Farm agent.
- The only online support is FAQ and written resources; there is no live chat option.
- Phone support is only available during business hours.
How Does State Farm Compare with Other Companies?
A review of any insurance company is most useful when it’s easy to compare what they offer with what their competitors can provide.
Here’s a look at how State Farm compares with two of its top competitors, Allstate and Geico.
State Farm vs. Allstate
Both State Farm and Allstate are large insurance companies with strong financial ratings and a history of solid customer support.
One area of difference is in policy availability: Allstate offers renters insurance in all 50 states plus the District of Columbia, while State Farm is available everywhere except Massachusetts and Rhode Island.
Allstate beats State Farm when it comes to discounts on renters insurance, offering five–including a special discount to make renters insurance more affordable for retirees–whereas State Farm offers only two.
Both companies offer well-received customer service and support, but State Farm has fewer customer complaints than Allstate, which has received the expected number of complaints for a company of its size.
Both companies have user-friendly websites where it’s possible to obtain quotes and file and track claims, and both have well-received mobile apps.
Finally, both companies offer high policy limits for personal property, but Allstate’s maximum limit is $150,000 while State Farm has no maximum limit.
Read a full Allstate renters insurance review.
|J.D. Power (out of 1,000)||837|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||2.05|
State Farm vs. GEICO
GEICO is another large company with solid financial and customer service ratings, but let’s see how it stacks up against State Farm.
Like Allstate, GEICO is available in all 50 states, while State Farm is not yet available in Rhode Island or Massachusetts.
In terms of discounts, both companies offer two, and they’re essentially the same, including a bundling discount and a discount for installed security devices.
The biggest difference between these two renters insurance companies is that State Farm offers its own renters insurance policies while GEICO offers quotes from a selection of third-party providers, meaning that you won’t be able to choose which carrier your policy is from.
The third-party quotes offered by GEICO come with another caveat: your coverage options will vary from carrier to carrier, so we can’t give you a true comparison of what to expect if you choose GEICO.
The two companies are comparable in terms of cost, with a basic renters insurance policy coming in at about $12 per month, which is below the national average.
|J.D. Power (out of 1,000)||869|
|A.M. Best - Financial Strength Rating||A++|
Renters Insurance Overview
While renters insurance is not legally required of renters in any state, some landlords require proof of renters insurance to protect tenants’ belongings.
Renters insurance typically covers a renter's personal belongings up to the policy limit whether their belongings are in the rental unit or not when they are damaged, destroyed, or stolen.
At PropertyNest, we recommend renters insurance for every renter because a landlord’s property insurance won’t protect tenants’ personal belongings or personal liability.
Policies & Coverage
State Farm offers standard coverage that’s in line with every other company that offers renters insurance, with a few exceptions.
The differences lie in the depth of coverage, something we’ll discuss later in the section about policy limits.
- Personal property. Personal property coverage protects your clothing, furniture, electronics, and other belongings. (Note: high-value items must be scheduled separately.)
- Personal liability. Personal liability coverage protects you if you are found to be personally liable for an injury to a guest or the damage or destruction of their personal property.
- Guest medical expenses. Guest medical expenses are covered on a limited basis in the event you are found liable for their injuries.
- Loss of use. Loss of use coverage protects you in the event that your rental should become damaged to the point where it is uninhabitable. It will pay for you to stay in a hotel as well as for restaurant meals and other related expenses.
In addition to the above standard coverages, State Farm offers an array of additional coverages that may be added to your policy, usually at an additional cost.
- Replacement cost coverage. The standard personal property coverage will reimburse you for the actual cash value of your belongings; replacement cost provides enough money to replace your items with new ones.
- Inflation coverage. Inflation coverage is included with State Farm’s renters insurance policies and automatically adjusts your policy limits for inflation. (Separately scheduled items are not included.)
- Business property coverage. If you buy this rider, you’ll get coverage for $1,500 worth of business equipment.
- Cyber attack coverage. This policy add-on will protect you if you are the victim of a cyber attack and is available in all states where State Farm is licensed except North Carolina.
- Earthquake coverage. Earthquake insurance is available as a separate policy that can be added to your renters insurance and is advisable if you live in an area prone to earthquakes.
- Personal liability umbrella policy. If you’re worried that the personal liability coverage that comes with your basic renters insurance policy won’t be sufficient, you can purchase an umbrella policy.
- Pet medical insurance. State Farm makes it easy to add pet medical insurance to protect your furry companion.
You should know that certain types of coverage are not available for renters, including flood insurance, which must be purchased through FEMA.
One of the things that sets State Farm apart from other renters insurance companies is that they offer higher-than-usual limits on renters insurance, and that includes coverage for personal liability.
Here are the limits for State Farm renters insurance.
- Personal property: No maximum limit.
- Loss of use: No maximum limit.
- Personal liability: $100,000; $300,000; $400,000; $500,000; $750,000; $1,000,000.
- Medical payments to others: $1,000; $2,000; $3,000; $4,000; $5,000.
- Deductible: $500; $1,000; $2,000
Keep in mind that opting for a high policy limit or a low deductible will increase your costs.
State Farm doesn’t offer many discounts for renters insurance, but they offer two that most renters should be able to take advantage of.
- Bundling discount. According to State Farm, you can save up to 17% by bundling auto and renters insurance, which may be enough to fully cover the renters insurance cost.
- Home protection device discount. You can qualify for a discount on your renters insurance if you have installed deadbolts, smoke detectors, or burglar alarms.
If you’re willing to switch your car insurance to State Farm, you can basically get your renters insurance for free.
While State Farm offers only two renters insurance discounts, their average cost for renters insurance is below the national average.
The average monthly cost for State Farm renters insurance is $12, which is 20% lower than the national average of $15 per month.
However, you should keep in mind that most renters are likely to opt for lower limits and if you choose to buy $50,000 in personal property coverage and $1,000,000 in personal liability, you’ll pay significantly more than the average.
We should also note that your deductible will have an impact on your premium, with a low deductible costing more than a high one.
State Farm makes it easy to file a claim, with options to do so by phone, on their website or using their free mobile app.
According to their website, you should have the following information handy before filing a claim.
- The date and time of the incident
- The nature of the property involved
- The location of the incident
- Your contact information
- The cause of damage
- Details of injuries, if applicable
You can track the status of your claim using their customer portal or mobile app or by making a phone call during business hours.
Make sure to have your claim number handy before you check the status.
Customer Service Options & Availability
Customer service is a priority for anybody shopping for insurance because if you need to file a claim, the last thing you want is for it to be difficult or stressful.
State Farm offers four ways to get support, as follows.
A comprehensive customer care page on State Farm’s website includes FAQs, resources, and a tool to help you find an agent.
You can call the claim and customer service number for State Farm for technical support.
Support for State Farm’s mobile app is available within the app, and you can also view the resource page for information or call the tech support number to get help.
State Farm relies on its vast network of licensed agents to provide support to policyholders; if you can’t get in touch with State Farm, you can call your agent for assistance.
We should note that State Farm and its agents are typically available only during business hours; they do not currently offer 24-hour phone support or live chat.
State Farm History & Overview
State Farm is a well-established company and the oldest property & casualty insurance company in the United States, having been established back in 1922 by a retired farmer named George J. Mecherle.
Originally founded with the purpose of providing affordable auto insurance to farmers in Illinois, where the company was established, State Farm has since expanded to offer a variety of insurance coverages, including renters insurance and homeowners insurance.
State Farm was ahead of its time in terms of keeping its employees comfortable, introducing “posture chairs” for office workers back in 1935.
The company outgrew its offices three times before 1929 and has grown steadily throughout its existence.
According to the company website, State Farm’s mission is “to help people manage the risks of everyday life, recover from the unexpected and realize their dreams.”
The company’s governing principle is expressed in its jingle, “Like a good neighbor, State Farm is there,” which was written by prolific singer/songwriter Barry Manilow.
Overall, we can say that State Farm is a reliable company with a long history of good customer service and responsible payment of claims.
The company has strong financial ratings and has received the highest possible rating from A.M. Best, one of the most respected rating companies in the world.
State Farm’s costs and coverage are excellent, and their monthly cost of $12 for basic coverage is 20% less than the national average of $15.
State Farm excels in the breadth of its coverage options, offering high policy limits for property, personal liability, loss of use, and guest medical coverage, with no cap on coverage for property damage or loss of use, something that few other companies offer.
The customer service options are a bit of a mixed bag because while State Farm has received a lower-than-average number of customer complaints, their customer support is limited and unavailable around the clock, which may not be ideal for some renters.
We like that claims can be filed online, by phone, or by using State Farm’s free mobile app, which is intuitive and easy to use.
Overall, we think State Farm is a solid choice for renters in search of reliable coverage and especially those seeking higher-than-usual policy limits and add-on coverage.
As always, we recommend obtaining at least three quotes to compare costs and coverage before you choose a policy, making sure to take advantage of all available discounts.