Founded in 1922, State Farm is a household name for its popular auto insurance, homeowners insurance and life insurance policies. However, the company also offers quality renters insurance for consumers who want to protect their personal property but don’t own their home.
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If you’re wondering whether you need to purchase renters insurance, it’s smart to take a close look at your personal possessions and how much it would cost to replace them. If you have nice clothing, electronics, furniture and jewelry, there’s a good chance you’ll want a renters insurance policy. Of course, it’s also important to understand that renters insurance offers personal liability and medical coverage, among other features.
Before you buy a renters insurance policy, it’s smart to consider options from more than one insurer. In this review, we’ll go over State Farm’s renters insurance policies, what they cover and how to get a free quote.
State Farm Renters Insurance: Key Takeaways
- Online quotes
- Customizable policies
- Includes liability coverage
- Optional coverages available
State Farm Renters Insurance Review
State Farm offers customizable policies to fit your needs. Their renters policies offer comprehensive loss protection caused by aircraft, falling objects, fire, freezing, hailstorms, ice, lightning, snow, theft, vandalism and riots. State Farm’s standard renters policies include:
- Personal property coverage: After suffering a covered loss, such as a burglary or fire, State Farm’s personal property coverage will pay to replace belongings like clothing, electronics and furniture. State Farm allows you to increase coverage for certain types of property. For example, by default, standard policies pay up to $5,000 for home computers, but you can increase the coverage to $10,000. State Farm’s standard renters policies pay actual cash value, but the provider also offers optional replacement cost coverage. It’s important to understand the difference between actual cash value and replacement cost coverages, particularly if you have items that depreciate quickly, like home entertainment equipment.
- Actual cash value coverage pays the depreciated value for your personal property. For example, if your three-year-old TV, which you bought new for $500, burns in a fire, State Farm will only pay you its depreciated value, say $200. So, in order to buy a new TV, you’ll likely have to pay a hefty sum out of your own pocket.
- Replacement cost coverage, on the other hand, doesn’t apply depreciation to your property. So, if fire destroys your three-year-old TV, you can replace it with an equivalent current model at today’s price. If the current model of the TV costs $600, your replacement cost coverage will pay for it, minus your deductible.
- Liability coverage: If a guest sustains an injury in your home, you could face expensive medical bills. Worse yet, if the victim sues you, you’ll also end up paying attorney’s fees and possibly a court judgement. State Farm’s renters liability coverage pays medical expenses and legal fees. You may also need to file a claim against your liability coverage if your kid breaks a neighbor’s window or you accidentally drop your friend’s cell phone. State Farm offers customizable liability policies, with personal liability coverage ranging from $100,000 to $1 million and medical payments coverage ranging from $1,000 to $10,000. Keep in mind that liability coverage will not pay your medical expenses, only those of people outside your household.
- Loss of use coverage: If you’re displaced from your rental home following a covered loss such as a fire, your loss of use coverage will help pay your additional living expenses for up to two years. For example, if you usually pay $1,000 per month for your rental unit and you must pay $1,500 per month for temporary accommodation, you can claim $500 per month against your loss of use coverage.
Before purchasing a renters policy, you’ll need to take an inventory of your personal property to determine how much coverage you need. This will prevent you from buying too much coverage while, at the same time, ensuring you’re completely covered when you do need to file a claim. Here is a quick and easy way to inventory your home:
- Go room by room and make a list of all your belongings
- Record each item’s current value or purchase price
- Total the amounts for all items to determine how much coverage you need
A few home inventory mobile apps – available for Android and Apple devices – make the process faster and easier. Nest Egg, Blue Plum Home Inventory and MyStuff are just a few of your many options. Many inventory apps enable you to create property lists, add descriptions and store photos. With some, you can even export your list to a .pdf file to store on a disc or print.
If you create handwritten inventory, also take pictures of your belongings. And, when you’re finished, store your inventory in a safe place, like a fireproof document box or a bank safe deposit box. Having the inventory on hand can save time if you need to file a claim.
Does State Farm have any add-on features?
State Farm’s standard renters policies cover the basics, but you can also add several optional coverages for maximum protection, including:
- Additional liability coverage: This coverage gives you higher limits in the event of a lawsuit. Also known as an umbrella policy, this type of coverage can pay legal expenses if someone sues you for defamation of character, libel or slander. State Farm’s umbrella policies start at $1 million, which you can increase in $1 million increments.
- Earthquake damage coverage: Your standard State Farm renters policy doesn’t cover losses caused by earthquakes, so if you live in an area prone to tremors, consider this optional coverage. The availability of earthquake damage coverage may vary by state.
- Identity restoration: When someone steals your personal information to commit a crime, State Farm’s optional identity restoration coverage can reimburse you for costs associated with restoring your credit. The policy covers a wide range of crimes, including credit card fraud, cyber extortion and data attacks, and can help pay legal fees, auditing expenses, notary fees, credit report fees and application refiling fees. In today’s dangerous cyber world, identity restoration protection is a must. You can add this coverage to your standard State Farm renters policy for just $25 per year.
- Pet medical insurance: In partnership with Trupanion, State Farm offers optional pet medical insurance that pays up to 90% of your pet’s medical bills, minus deductible. You can use the coverage to pay for diagnostic tests, hospitalization, herbal therapies, medications, prosthetic devices, surgeries and veterinary supplements.
- Additional business property: If you work from home, your standard renters policy’s personal property limit might not provide enough coverage to pay for expensive equipment such as computers, monitors and printers. But State Farm allows renters to add business coverage to their renters policies. The carrier insures all types of businesses, from restaurants to medical companies to nonprofit organizations.
- Incidental business liability coverage: Like an umbrella policy that covers your personal liability, incidental business liability coverage helps pay legal fees when another party sues your business.
How to Get a Quote from State Farm
State Farm makes getting an online quote very easy. Once you submit your information, you’ll receive a quote instantly online. From there, you can tweak your policy and coverage limits or add optional coverages. In some locations, you can even purchase a renters policy online at the end of the process. To request an online quote, you’ll need to input the following information:
- Your name
- Address of residence
- Email address
- Number of household members
- Estimated value of your personal property
- Safety and security features of the home
- Claims history
- Name of most recent insurer
State Farm Renters Insurance Discounts
State Farm gives you several ways to reduce your renters insurance rate. You can select a lower level of coverage, for example, or raise your deductible. And, State Farm extends a couple of discounts to renters, including:
- Multi-policy discounts: Save big by bundling multiple insurance policies with State Farm, such as auto and renters insurance
- Home protection alerts: You may also qualify for a discount if your home is equipped with smoke detectors, a home security system or a smart home monitoring system
How We Rate State Farm Renters Insurance
We aim to provide a general overview of each insurer’s products and services through a standard rating process. With that in mind, we considered policy offerings and overall customer satisfaction using J.D. Power’s 2019 U.S. Home Insurance Study. We also consider a carrier’s financial strength, based on A.M. Best and Standard and Poor’s credit ratings. Here’s how State Farm renters insurance stacks up:
- J.D. Power overall satisfaction rating: 5 out of 5 stars
- AM Best rating: A++ (Superior)
- Standard and Poor’s rating: AA
The Bottom Line
Typically, renters insurance doesn’t cost a lot of money – $20 or less per month – so it makes sense to protect your valuable possessions. Renters policies also offer personal liability coverage to help pay medical and legal expenses if someone sustains an injury in your rental unit.
State Farm ranked second in the nation in J.D. Power’s 2019 U.S. Home Insurance Study, earning five out of five star ratings in almost all categories. State Farm insurance policies cover all the bases, offering personal property, personal liability and loss of use coverage. Plus, State Farm offers great optional coverages for expensive items, like jewelry and collectibles, along with policies to protect your business and pet.
However, State Farm falls a little short when it comes to discounts. You can earn a discount when you buy multiple policies and enjoy even greater savings for homes equipped with safety and security devices. But State Farm doesn’t provide some of the discounts many other carriers offer, like autopay, claims-free, electronic billing and loyalty discounts.
Nonetheless, we think State Farm renters insurance is a winner. Still, it’s a good idea to shop around before you buy a rental insurance policy. By comparing rates and policy details, you can find the best policy for your needs.