Are you looking for a reliable and affordable renters insurance that covers your personal property and liability? If so, you may want to consider State Farm Renters Insurance, one of the top renters insurance providers in the US. In this review, we’ll examine the pros, cons, and costs of State Farm renters insurance. By the end of this review, you’ll have a clear understanding of how State Farm renters insurance can protect you and your belongings from the unexpected.
Pros of State Farm Renters Insurance
State Farm renters insurance has many advantages and benefits that make it a great choice for renters. Some of the benefits of State Farm renters insurance are:
Competitive and affordable rates:
State Farm renters insurance offers lower premiums for various coverage levels than other providers. According to our analysis of average rates, State Farm renters insurance costs $122 per year for $15,000 of personal property coverage, $160 per year for $30,000 of personal property coverage, and $209 per year for $50,000 of personal property coverage. These rates are lower than the national average and are among the cheapest in the market.
High customer satisfaction and low complaint ratio:
According to the National Association of Insurance Commissioners, State Farm renters insurance has high customer satisfaction ratings and a low complaint ratio. State Farm scored 0.20 on the NAIC Complaint Index for 2020, well below the industry average of 1.004. That means State Farm received fewer complaints than expected for its market share. State Farm also received an A+ rating from the Better Business Bureau, indicating high levels of customer trust and satisfaction.
Nationwide availability and strong financial stability:
State Farm renters insurance is available in 47 states and Washington, DC, making it one of the most accessible providers in the country. State Farm also has strong financial stability, as evidenced by its A++ rating from AM Best, the highest possible rating for an insurance company. This means that State Farm has a high capacity to meet ongoing financial obligations to its policyholders.
Optional Coverage for Cyber Attacks, Cyber Extortion, and Identity Recovery:
State Farm renters insurance offers some unique optional coverages that can increase your protection and peace of mind. For an additional premium, you can add coverage for cyber attack, cyber extortion and identity recovery to your policy. These coverages can help you recover from financial and personal losses caused by cybercrimes, such as hacking, ransomware, phishing, identity theft, and fraud.
These are some of the pros of State Farm renters insurance that make it a worthwhile investment for renters. However, State Farm renters insurance also has some drawbacks that you should be aware of before you buy a policy.
Cons of State Farm Renters Insurance
State Farm renters insurance has some disadvantages and limitations that may affect your decision to purchase a policy. Some of the disadvantages of State Farm renters insurance are:
Limited discounts and coverage options for renters:
State Farm renters insurance does not offer as many discounts and coverage options for renters as other providers. Discounts available to renters are Multi-Policy Discount and Home Alert Protection Discount. A multi-policy discount applies if you bundle your renters insurance with another State Farm policy, such as auto, home, or life insurance. The Home Alert Protection discount applies if you install a fire, smoke, or burglar alarm in your rental property. However, these discounts may not be enough to significantly reduce your premium. Additionally, State Farm renters insurance does not offer some common coverage options for renters, such as water backup, personal injury, or earthquake coverage. These coverages can provide additional protection for your property and liability in case of specific perils that are not covered by the standard policy.
Poor claims handling reviews and ratings:
According to some sources, State Farm Renters Insurance has poor reviews and ratings for its claims handling process. J.D. Based on Power4’s survey of over 6,000 consumers, State Farm received 3 out of 5 stars for satisfying its claims. This score is below the industry average and ranks 14th out of 18 providers. State Farm also earned 2.5 out of 5 stars for claims service, based on more than 1,000 reviews from Clearsurance5. Many consumers complained about State Farm’s slow, unresponsive, or unfair claims handling, resulting in reduced or denied payments.
No Online Pricing or Purchase Option for Renters Insurance:
State Farm Renters Insurance does not offer an online pricing or purchase option for renters insurance, unlike many other providers. If you want to get a quote from State Farm or buy a policy, you need to contact a local agent by phone or in person. This can be inconvenient and time-consuming for some consumers, especially those who prefer to shop online or compare multiple quotes from different providers.
These are some of the disadvantages of State Farm renters insurance that may prevent you from purchasing a policy. However, State Farm renters insurance also has some benefits that may outweigh these drawbacks depending on your needs and preferences.
Costs of State Farm Renters Insurance
The cost of State Farm renters insurance depends on several factors, such as your location, coverage amount, deductibles, and deductibles. Generally, the more coverage you have, the higher your premium will be. However, you can lower your premium by qualifying for a higher deductible or discount.
To give you an idea of how much State Farm renters insurance costs, here are some sample quotes for different scenarios based on search results.
- A 25-year-old single male renting a studio apartment in Los Angeles, California, with $15,000 of personal property coverage, $100,000 of liability coverage, and a $500 deductible, pays $10 per month.
- A 30-year-old married couple renting a two-bedroom apartment in Houston, Texas, with $30,000 of personal property coverage, $300,000 of liability coverage, and a $1,000 deductible, pays $13 per month.
- A 35-year-old single female renting a one-bedroom apartment in New York, New York, with $50,000 of personal property coverage, $500,000 of liability coverage, and a $1,500 deductible, pays $17 per month.
These are just examples and your actual quote may vary depending on your specific situation and preferences. The best way to find out how much State Farm renters insurance is worth it to you is to contact a local agent and get a personal quote. You can also compare your quote with other providers to see how State Farm renters insurance fares.
Conclusion
State Farm Renters Insurance is a popular and reputable renters insurance provider that offers competitive and affordable rates, high customer satisfaction, nationwide availability, and strong financial stability. State Farm renters insurance also offers some unique optional coverages, such as cyber attack, cyber extortion, and identity restoration. However, State Farm renters insurance also has some limitations, such as limited deductibles and coverage options, poor claims handling reviews and ratings, and no online pricing or purchasing option. Therefore, State Farm renters insurance may not be the best choice for everyone depending on their needs and preferences.
If you are interested in State Farm renters insurance, you should contact a local agent and get a personal quote. You should also compare your quote with other providers and see how State Farm renters insurance fares. You can also read more reviews and ratings from other users and experts to get a better idea of how State Farm renters insurance works.