State Farm Insurance Homeowners Policy Review
You can never be too safe when it comes to protecting your family. This is especially true in the event of a natural disaster that can cause expensive damage to your home and property. You need a company you can trust for your homeowner's insurance coverage. Does State Farm Insurance really measure up to its popular motto, “like a good neighbor, State Farm is there?” It seems that the popular theme song for the company may ring true. State Farm Insurance has a reliable record in financial stability, customer service, and claims.
State Farm Insurance was founded in 1922 by George J. Mecherle. Mr. Mercherle was a retired farmer and wanted to offer another option to farmers for automobile insurance. Since its early days, the company has expanded its insurance products to include homeowners insurance, renters insurance, condo insurance, motorcycle insurance, life insurance and banking and financial services. State Farm has its headquarters in Bloomington, Illinois with over 17,000 agents and 67,000 employees serving the United States and Canada. There are 30 operations centers and over 300 claims offices. The CEO is Edward B. Rust, Jr. The company has an annual revenue of over $64 billion with an insurance division, mutual funds and it also operates its own bank.
State Farm is a Fortune 500 company and writes over 77 million insurance policies. Although State Farm Insurance withdrew from insuring property in Florida temporarily after extensive claims in the state, it now continues to write property policies in the state of Florida.
State Farm Insurance believes in being actively involved in the community. It has sponsorships throughout the United States and Canada, as well as safety programs, educational programs, and service programs. The State Farm Safety Patrol Program gives free roadside assistance to stranded motorists on participating highways. The service includes free fuel refill, engine oil, and radiator refills.
Financial Strength and Customer Satisfaction
State Farm Insurance ranks highly in the financial strength category. A.M. Best rates State Farm Insurance with an A++ (Superior) rating. This is the highest rating possible. Standard & Poor’s also rates State Farm Insurance very highly with an AA rating. Financial ratings are based on a company’s ability to pay claims, meet other financial obligations, and carry out superior operational performance. J.D. Power and Associates rate State Farm Insurance above average in the area of overall customer satisfaction.
State Farm is the largest auto insurer in the U.S. since 1942 and the number one homeowner's insurer in the U.S. since 1964. is ranked 36th on the 2019 Fortune 500 list of largest companies based on revenue. According to statistics from the Insurance Information Institute (III), State Farm is the number one ranked property and casualty insurer in the U.S. with $64,892.583 in direct premiums written giving it a 10/1% market share of the U.S. property and casualty insurance marketplace.
Did you know?
Did you know State Farm pays approximately $36,000 per day in fire and auto claims?
You can purchase a State Farm homeowner's insurance policy through its website or at a local agency. After you buy your policy, you will find full policy and claims services available either online or through a local agent’s office. There are many attractive homeowner’s insurance discounts and coverage options available.
What Is Covered?
Your State Farm homeowner's insurance policy covers losses caused by fire or lightning, theft, freezing of your plumbing system, and windstorm or hail damage. There are also some things the policy doesn’t cover such as intentional bodily injury or property damage, business operations, aircraft maintenance, motor vehicles, and some types of watercraft.
Check with a local agent to find out the specifics of what is covered under the homeowner's policy. There are different types of homeowners policies available that the agent can tell you about. Some provide more coverage than others. There is the basic, broad form and what is called an all-risk policy. The all-risk policy provides coverage for any loss that is not specifically excluded from your homeowner's policy.
The discounts available with the homeowner's policy include:
· Home security devices
· Fire sprinklers
· Claim-free history
· Multiple policy discount
· Utility rating plans
· Roofing material discount
With the State Farm home insurance policy you can also purchase additional coverage for personal insurance, flood insurance, home business insurance, and identity restoration. If you are a renter, you can also buy a renters insurance policy.
For other types of housing, you can buy a farm and ranch insurance policy or a manufactured home insurance policy.
· Farm and ranch: If you own or rent a farm but do not live there, the farm and ranch policy protects only the farm property such as farming tools, machinery or grain. You can schedule the property you need to be covered by your policy. It also provides personal and farm liability as well as medical payments to others.
· Manufactured home: The manufactured home insurance policy from State Farm is similar to a homeowners insurance policy but is customized for the unique risks of manufactured homes.
The Bottom Line
State Farm has been providing insurance for more than 100 years across the United States. The company has superior financial strength ratings (A.M. Best’s Highest Rating of A++), customer service ratings, and a high claims satisfaction record from J.D. Power & Associates. There are more than 19,000 State Farm Agent servicing more than 83 million policies which means you can buy a State Farm policy no matter where you live in the U.S. State Farm offers 24/7 claims service online or by phone, has an excellent financial stability rating and a high customer satisfaction rating. There are abundant discounts available to policyholders although all discounts are not available in every state. Overall, State Farm is an excellent choice for homeowners insurance.
Company Contact Information
To find out more information about State Farm’s homeowner's insurance policy or its other insurance products, you can visit the State Farm website or call 855-733.7333. You can also enter your zip code to find the nearest local agent.
Iii.org. (2019). U.S. Insurance Industry, All Sectors. [online] Available at: https://www.iii.org/sites/default/files/docs/pdf/insurance_factbook_2019.pdf [Accessed 31 Oct. 2019].
State Farm. (2019). Fast Facts - State Farm®. [online] Available at: https://www.statefarm.com/about-us/company-overview/company-profile/fast-facts#footnote-3-ref [Accessed 31 Oct. 2019].