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State Farm: Everything you need to know
|Home Office||Bloomington, Illinois|
|Texas Homeowners Policies||1,162,624|
|Rank - Texas Top Ten Homeowner Insurance Policies||1st|
|Fortune 500 Rank||36|
State Farm is a large group of insurance and financial services firms based in the US. The group’s parent company is State Farm Mutual Automobile Insurance Company, which is a mutual insurance company based in Bloomington, Illinois. State Farm is best known for offering property and casualty (P&C) insurance products, especially in personal lines. According to SNL Financial Data, State Farm insures more cars and homes than any other insurer in the US.
As well as offering P&C insurance, State Farm subsidiaries and affiliates also offer life and health insurance, annuities, mutual funds and banking products. In 2018, the firm was ranked 36th on the Fortune 500 list of largest companies. It has approximately 58,000 employees and sells its products through a 19,000-strong force of independent contractor exclusive State Farm agents.
Becoming a ‘good neighbor’
Consumers may know State Farm by its ‘good neighbor’ slogan. That premise started almost 100-years-ago when retired farmer and insurance salesman George Jacob “G.J.” Mecherle founded a single-line auto insurance company in 1922, aimed specifically at the farming community. The firm later expanded its client reach and started offering other product lines, such as homeowners’ and life insurance, followed by banking and other financial services. The ‘good neighbor’ catchphrase has been around since 1971, when American songwriter Barry Manilow wrote a jingle for the insurance giant, which included the phrase: “Like a good neighbor, State Farm is there.”
Today, State Farm offers about 100 products and services, in five different lines of business: property and casualty, life and health, annuities, mutual funds, and banking products. As of December 31, 2017, the firm claimed to service around 83.4 million policies and accounts, of which:
- 44.1 million were in auto insurance
- Over 28 million were in fire insurance
- Eight million were in life
- Nearly 867,000 were in health
Away from insurance, State Farm claims to be the 101st largest bank in the US in terms of assets (holding nearly $16.7 billion), and has nearly 519,000 accounts in mutual funds. State Farm allegedly handles around 39,000 claims per day.
|Named Peril||State Farm Basic Form Coverage HO-A (H0-1)||State Farm Broad Form Coverage HO-A+ (HO-2)||State Farm Special Form Coverage HO-B (HO-3)|
|Riot and Civil Commotion||Yes||Yes||Yes|
|Wind and Hail||Yes||Yes||Yes|
|Vehicles and Aircraft||Yes||Yes||Yes|
|Weight of Snow or Ice/Sleet||No||Yes||Yes|
|Theft and Burglary||No||No||Yes|
|Full Glass Coverage||No||No||Yes|
|Pretty Much Everything Else*||No||No||Yes|
State Farm may exclude coverage for specific losses. Even the most comprehensive all-risk policy will exclude certain types of loss or damage.Common exclusions include:
HO-C Policies in Texas
While most people find HO-B policies to be sufficient, there is one policy that covers more, the HO-C covers all perils and contents. There are the usual exclusions, but if you have great credit and need additional no-fuss coverage for personal property damages, it may be the way to go.
|City||Average Annual State Farm Homeowner Insurance Rate|
|City||Average Annual State Farm Condominium Insurance Rate|
|City||Average Annual State Farm Renters Insurance Rate|
|City||Average Annual State Farm Auto Insurance Rate|