State Farm Renters Insurance Review

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State Farm has been writing insurance policies for nearly 100 years. In the early days, State Farm specialized in car insurance, but today it offers around 100 products and services, including business insurance, health insurance, home insurance and renters insurance. State Farm operates from coast to coast with nearly 19,000 local offices.

State Farm ranks 36th on the Fortune 500 list, and AM Best give State Farm an A++ (Superior) rating for financial stability. J.D. Power ranked State Farm fourth in the nation in its 2019 U.S. Home Insurance Study, and the Better Business Bureau gives the insurer an A rating.

State Farm offers affordable renters insurance and options to purchase additional coverage for your most prized possessions. It also provides ways for policyholders to earn discounts for even greater savings.

State Farm renters insurance coverage

A State Farm renters insurance policy includes three types of coverage:

  • Personal property coverage can pay to replace personal belongings such as electronic equipment and furniture. The coverage applies to losses caused by fire, smoke and storm damage, theft and vandalism. Personal property coverage also applies to losses caused by plumbing or appliances, but not losses caused by flooding. State Farm limits coverage on certain types of property, including boats, checks, collectible items, currency, firearms, furs, jewelry, silverware, wall hangings and property used for business.
  • Liability coverage can pay for medical expenses or property damage of other people if an accident occurs in your home. This type of insurance can also cover your legal expenses if someone sues you as the result of an incident in your home.
  • Loss of use coverage can help pay your living expenses if your home becomes uninhabitable due to a covered loss. For example, if you must temporarily relocate during repairs to your home following a fire, loss of use coverage can help pay your expenses for up to 24 months.

State Farm renters insurance does not cover damage to the home’s structure or losses caused by earthquakes or flooding.

Optional coverage

State Farm also offers optional policies for renters, including:

  • Additional liability coverage
  • Business property insurance
  • Earthquake insurance
  • Identity restoration insurance
  • Incidental business liability insurance
  • Pet insurance

Reasons to choose State Farm renters insurance

Folks who already have a State Farm auto insurance policy can earn a discount by purchasing State Farm renters coverage. Renters who live in homes protected by security systems or equipped with smoke detectors can receive additional discounts with State Farm.

State Farm’s basic renters insurance policy is not the best coverage for people who have certain expensive possessions, like coin or art collections. However, State Farm offers a good selection of optional policies that can help cover renters’ valuables.

State Farm’s mobile app, available for Android and Apple devices, includes features for managing your account. The app stores a digital copy of your insurance card and enables you to contact your agent, file a claim and upload supporting photos and documents. State Farm automobile policyholders can also request roadside assistance within the app.

State Farm insurance rates

According to The Zebra, an organization that researches insurance companies, renters pay an annual average renters insurance premium of $188. Policyholders in Louisiana pay an average of $340 per year, the highest in the nation, while Wyoming renters pay an average of $107, the lowest rates in the United States.

Many factors contribute to the cost of renters insurance. In neighborhoods with high crime rates, renters often pay high renters insurance rates. Other factors that contribute to premium rates include proximity to a fire station, earthquake history and proximity to a coastline.

Bankrate requested State Farm renters insurance quotes for apartments in three cities, one on the East Coast, one on the West Coast and one in the center of the country, and here is what we found:

Property Location Personal Property Coverage Liability Coverage Deductible State Farm Annual Rate
San Francisco, CA $20,000 $100,000 $500 $130
Memphis, TN $20,000 $100,000 $1,000 $147
Savannah, GA $20,000 $100,000 $1,000 $312

State Farm gives you several options for filing a claim. You can call the State Farm claims center, contact your State Farm agent, file on the State Farm website or navigate to the claims screen in the State Farm mobile app.

Additional policies offered by State Farm

State Farm offers a full portfolio of insurance coverages, including:

  • Business and professional insurance
  • Condo insurance
  • Farm and ranch insurance
  • Health, individual medical and supplemental health insurance
  • Homeowners insurance
  • Identity restoration insurance
  • Individual credit insurance
  • Long-term and short-term disability insurance
  • Medicare supplement insurance
  • Personal liability insurance
  • Personal property insurance
  • Rental property insurance
  • Term, whole and universal life insurance
  • Small business insurance

Choosing the coverage that’s right for you

Purchasing renters insurance requires making a few decisions and preparing certain things:

Take an inventory

To determine how much coverage you need, take an inventory of your personal property. There are several ways to go about preparing an inventory. If you prepare a written inventory, record the make, model and serial numbers of items, along with their purchase date and value. You can also take a digital inventory using a mobile app. Most apps allow you to take photos of your property and enter a description of each item. You might also take inventory using a video camera to capture images of items and their serial numbers. Saving receipts and updating your inventory when you make new purchases can make filing a claim much easier.

To share or not to share

When sharing a house or apartment with a roommate, you must decide whether you want to include the roommate’s property or take out separate renters policies. Sharing a policy can save you a few dollars, but if one person files multiple claims, it could lead to a rate increase and cause problems in the relationship.

Consider optional coverages

Most renters insurance policies do not cover losses caused by floods or earthquakes. If you live in a location prone to earthquakes, consider purchasing a separate earthquake policy. Also, the limits of personal property coverage might not offer enough protection to pay for damage to expensive items such as jewelry or a piano. Consider purchasing separate policies for your most valued possessions, or ask your insurance agent if you can take out an endorsement or rider for extra coverage.

Consider replacement cost coverage

Renters insurance will only pay the value of a possession, not the cost to replace it. For example, if someone steals your mobile phone, the amount you receive from a claim might not cover the cost of buying a new device. Many insurance companies, including State Farm, offer replacement cost coverage or inflation coverage, which covers the actual cost of replacing your property.

Frequently asked questions

What information is needed to get a quote from State Farm?

When you request a quote for renters insurance, State Farm will need to know your name, address, age and details about certain features of your house or apartment, such as security systems or fire and smoke detection systems. To get a quote, you can call a local State Farm agent or use the quote tool on the State Farm website.

How do I file a claim with State Farm?

State Farm allows you to file a claim by calling the claims center or contacting your State Farm agent. You can also file a claim on the State Farm website or within the State Farm mobile app.

Do I need renters insurance?

Yes. Your landlord’s property insurance does not cover your personal property. You never know when you might face losses due to a fire, storm or theft. In many locations, renters insurance is relatively cheap, so it pays to purchase coverage.

Can current State Farm policyholders save money if they take out a renters policy?

Yes. State Farm offers discounts for purchasing multiple policies. Better yet, by purchasing multiple coverages, you can save money on each policy.

How much renters insurance do I need?

To determine the amount of coverage you need, take an inventory of your personal property and calculate how much it would cost to replace it.

Written by
Michael Evans
Personal Finance Contributor
Michael Evans has worked in numerous industries, including education, finance, government, insurance and journalism. He began writing professionally while working for the world's first online mortgage brokerage in San Francisco, California. His writings have appeared in print and online publications, including Fox Business, International Living, Motley Fool and Yahoo Finance. Michael has contributed to Bankrate since 2013. He and his family divide their time between residences in Northern California and Colombia. When Michael is not writing, he enjoys working in his photography business and playing with his cat, Cyndi Lou.