State Farm Renters Insurance Review: Cost, Coverage, and More (2024)
State Farm offers affordable rates, but not all customers are happy with the company’s claims process.
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Written byNick Dauk
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6+ years writing about insurance, travel, and personal finances
Contributor to brands like Credible
In addition to insurance, Nick specializes in writing about business, entrepreneurship, personal finance, and travel. He’s been featured in myriad web publications, including Fox Business.
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Updated October 25, 2024
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Table of contents
State Farm is the country’s leading insurance company by market share.[1] It offers home, auto, life, and renters insurance, all at affordable rates. Research from the Insurance Information Institute shows only 37% of renters are insured, with many unaware that a landlord’s insurance policy doesn’t cover a renter’s personal property.[2]
Although State Farm has a good industry reputation overall, it has a high number of customer complaints. Use this review to learn more about State Farm renters insurance policies and compare them to other policies available through competitors.
Quick Facts
AM Best recently downgraded State Farm to a financial strength rating of B (Fair).
State Farm offers two discounts for renters insurance customers.
The company has low ratings on Trustpilot and the Better Business Bureau (BBB), though most complaints aren’t about renters insurance.
Insurify’s take on State Farm renters insurance
State Farm is one of the top renters insurance companies when it comes to rates. It offers average premiums lower than the national average. That said, it’s not the cheapest renters insurance company: Travelers, Allstate, and Erie have lower monthly averages.
Other insurance companies offer benefits that State Farm lacks. USAA, for example, includes flood and earthquake coverage in its renters insurance policies. Farmers offers paperless and pay-on-time discounts. Lemonade has a pet add-on that covers damages to personal belongings caused by a pet.
State Farm renters insurance is available in nearly all U.S. states, with the exception of Massachusetts and Rhode Island. This is great news for renters who are existing customers. The company offers discounts when State Farm policyholders bundle auto and renters insurance.
Unfortunately, the only other discount offered is for renters with eligible home security systems.
Although State Farm has a strong presence in the industry, its customer reviews are generally poor. The National Association of Insurance Commissioners lists State Farm’s Customer Complaint Index at 2.66, with 1 being the expected industry standard. Other third-party reviews on sites like Trustpilot and the Better Business Bureau (BBB) also reflect complaints, though few specifically mention renters insurance.
Here’s a look at some other pros and cons of State Farm renters insurance.
Pros
Strong industry history and presence
Rates cheaper than the national average
Bundling discounts can lower renters insurance rates significantly
Cons
Renters insurance not available in all states
Poor reviews for the company across multiple third-party websites
Limited available discounts
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What State Farm renters insurance covers
Similar to home insurance, there’s no single renters insurance policy that’s a perfect fit for everyone. The amount of coverage you need depends on your possessions. If you have expensive collectibles, jewelry, art, musical instruments, or other items that may exceed standard coverage limits, you’ll probably want to adjust your coverage.[3]
State Farm also offers personal property coverage that protects renters’ personal belongings in situations such as:
Accidental damage to your personal items caused by appliances, plumbing leaks, smoke and fire, vehicle impacts, and falling objects.
Weather damage from hail, windstorms and tornadoes, lighting, leaks from frozen plumbing systems, and impacts from the weight of ice, sleet, or snow.
Loss of use coverage compensation for additional living expenses like hotel rentals if you’re unable to stay in your home or apartment while it’s repaired under a covered loss.
Damage caused by vehicles, aircraft, civil unrest, riots, theft, and vandalism.
Liability coverage, which covers costs like medical expenses, if you injure someone or replacements for any of their personal property that you damage. This includes property in your home and outside of it.
Renters insurance doesn’t cover all forms of damage. For example, renters insurance covers damage from tornadoes but not from all weather-related perils. Most coverage options exclude:
Earthquakes, landslides, and nuclear hazard events are considered perils that aren’t covered.
Water damage like weather-caused flooding and underground water flooding aren’t covered.
Damages to the structure of the property itself are covered by the landlord’s separate insurance policy.
Good to Know
Remember that a renters insurance policy isn’t the only coverage that renters should consider. State Farm also offers optional renters insurance coverages like earthquake damage insurance, a personal liability umbrella policy, and identity restoration coverage for added protection.
Cost of State Farm renters insurance
The average monthly premium cost of State Farm renters insurance is $18. This rate is for a policy covering $30,000 of property insurance and $100,000 of liability insurance. The national average is $1 higher, at $19 per month.
State Farm has the same average monthly premium as competitors like USAA and Auto-Owners, but it’s cheaper than Nationwide, Allied, and Encompass.
State Farm renters insurance discounts
Discounts can lower your renters insurance premiums significantly. State Farm offers two discounts for eligible renters insurance policyholders: a bundling discount and a home safety discount.
State Farm claims that eligible policyholders could pay as little as a few dollars for renters insurance when combined with car insurance. Customers who only have a renters insurance policy may also qualify for a home alert protection discount if they install fire alarms, smoke detectors, and other home monitoring systems.
State Farm reviews: What real customers are saying
State Farm has a strong presence in the insurance industry, but recent customer reviews suggest that many policyholders aren’t satisfied with its products, including renters insurance. State Farm’s rating on Trustpilot is 1.6 out of 5, with 80% of reviews rating the company at 1 star. Its Better Business Bureau rating is a C-, with 1.22 out of 5 stars.
The State Farm customer comments that reference renters insurance policies mention difficulties with insurance agents and issues getting paid for a filed claim. State Farm does have substantial negative customer reviews. But the vast majority of them on Trustpilot and the BBB reference other insurance products unrelated to renters insurance.
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How to buy a State Farm renters insurance policy
You can get a quote and apply for renters insurance through State Farm online, on the mobile app, over the phone, or in person.
Gather this basic information prior to starting the quoting process for an accurate quote:
Your rental home or apartment’s safety features, including burglar alarms, deadbolts on exterior-facing doors, sprinkler systems, smoke alarms, and fire extinguishers.
Your insurance history, which includes your previous dates of renters insurance coverage, the name of that insurance company, and any claims for losses you’ve made in the previous five years.
A list of your possessions that might require additional coverage policies or increased coverage limits, like computers or jewelry.
You can begin the quote process by filling out a form detailing your personal information and the information you’ve gathered above. Next, choose your coverages and limits, including optional coverages, and then view your quote.
Then, you can then fill out the application for renters insurance or request a State Farm agent to contact you. You’ll receive confirmation of the application’s acceptance, and you’ll pay your first premium to start the coverage term.
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How to file a renters insurance claim with State Farm
Make sure you’re safe before filing a renters insurance claim with State Farm. The company suggests conducting a home inventory, taking photos, and keeping important records of your possessions when you sign up for your renters policy. These items will be useful when filing an accurate and comprehensive claim.
You can call a State Farm insurance agent or go online to file a renters insurance claim. If you choose to report a claim online or through the State Farm app, you’ll first log in to begin the process. Then:
File the claim, including all details on the nature of the incident (tornado, burglary, etc).
Wait for State Farm to review the claim; this may include an onsite investigation.
Provide requested documents, which may include photos, receipts, and information about the damaged items, to create an estimated loss amount.
Wait for State Farm to review the estimate.
Receive a response. If accepted, State Farm will provide a claim payout.
State Farm renters insurance FAQs
Renters insurance rates through State Farm are lower than the national average, but the company has received complaints referencing poor customer satisfaction. Use the following information to determine if State Farm is one of the best renters insurance companies for your needs.
Is State Farm reputable?
State Farm is generally considered a reputable insurer. It’s the number-one insurance company in the U.S. in terms of market share and direct premiums written. But potential customers should still read customer service reviews and recommendations before deciding if State Farm is the right renters insurance for them.
Does State Farm have a good reputation for paying claims?
State Farm’s reputation for paying claims is declining. AM Best recently downgraded the financial strength rating for State Farm from an A (Excellent) to a B (Fair). AM Best rates the company’s ability to pay insurance claims; a “B” rating is the median rating.
How much does State Farm renters insurance cost?
The average monthly cost of State Farm renters insurance is $18, which is lower than the national average of $19. Approximately half the country, including states like Alaska, Minnesota, and Virginia, have monthly payments of less than $18 per month on average.
Does State Farm renters insurance cover tornadoes?
Yes. Most State Farm renters insurance policies cover damage from tornadoes. A renters insurance policy typically covers damage from windstorms, while property damage and water damage from natural disasters like earthquakes and floods require separate add-ons.
Is renters insurance really worth it?
Renters insurance is beneficial because it protects you and your belongings when unpreventable events like fires, theft, or tornadoes occur. The low average rates are typically worth it for many renters because the long-term cost is significantly less than the cost of replacing all your possessions.
Sources
- NAIC. "PROPERTY AND CASUALTY INSURANCE INDUSTRY 2023 TOP 25 GROUPS AND COMPANIES BY COUNTRYWIDE PREMIUM."
- Insurance Information Institute. "In Many U.S. Cities Where Renters Outnumber Homeowners, Disaster Risk is High."
- Insurance Information Institute. "Renters Insurance."
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Nick Dauk
Nick Dauk is a freelance writer specializing in business, entrepreneurship, personal finance, and travel. His work has been featured in Fox Business, BBC, The Edge, Business Insider, and Bisnow. Nick is a first-generation college graduate, having majored in Interdisciplinary Studies at the University of Central Florida. His eclectic coursework, combined with previous managerial roles in the retail and broadcast television industries, have helped him develop an interdisciplinary approach to writing.
For nearly a decade, Nick has created content for mom-and-pop businesses and global corporations. As a travel writer, his global adventures have also been featured on Inside Hook, Houston Chronicle, Culture Trip, and Matador. When he's not traveling, Nick can be found in Orlando spending time with his wife and toddler.
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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