When it comes to home insurance, two big names often come to mind – Hippo and State Farm. But which provider offers better coverage and services for homeowners?
This comprehensive guide examines the key differences between Hippo and State Farm to help you determine which is the right home insurance company for you.
A Brief Comparison Table
| Feature | Hippo | State Farm |
| Cost | Lower rates than competitors, average savings of 25% | As major insurer, rates can be higher than some competitors |
| Claims | Claims settled in as fast as 3 days through mobile app | More traditional process with agent and adjuster inspection |
| Discounts | Usage-based discounts for responsible homeowner actions | Bundling, multi-policy, safe home discounts |
| Customer Service | Emphasis on fast digital self-service | Local agents provide personalized service and advice |
| Financial Strength | A- rating, backed by Topa Insurance | #1 home insurer with 90+ years in business and $271B assets |
| Technology | Uses smart home tech and IoT for monitoring and automation | Not a core focus, experience is more traditional |
Overview Of Hippo Insurance
Founded in 2015, Hippo is a relatively new player in the home insurance space. It’s a tech-focused company that uses smart home devices and other data sources to offer proactive home protection and streamlined claims service.
Here’s an overview of Hippo’s key features:
- Usage-based coverage: Hippo uses connected home devices to track things like security systems, leak detectors, and smart locks. This allows them to offer usage-based discounts to responsible homeowners.
- Proactive protection: Hippo’s risk prevention program includes plans like free smoke and water leak detectors. This enables Hippo to identify issues early and prevent losses.
- Fast digital claims: Hippo promises to settle claims in as little as 3 days through easy mobile upload of photos and documents. No adjusters come to inspect damage.
- Hippo Home Care: This service provides benefits like discounted smart home devices, 24/7 monitoring, repair assistance, and more. It aims to prevent issues before they become claims.
- Hippo Home Xtra: An optional add-on that covers things like electronics, jewelry, water backup, and more that a renters or condo policy may not cover.
Overall, Hippo aims to modernize home insurance through a tech-driven approach. It’s geared toward modern homeowners who are tech-savvy and want an easy, convenient experience.
Overview Of State Farm Insurance
State Farm is an old stalwart in insurance, founded in 1922. It’s best known for auto insurance but also offers extensive home insurance options.
Here are some key things to know about State Farm home insurance:
- Local agents: State Farm has an extensive network of local, independent insurance agents across the U.S. These agents provide personalized service.
- Broad coverage options: State Farm offers a range of home insurance products including condo, renters, homeowners, and umbrella insurance. Coverage is customizable.
- Bundling discounts: Like many insurers, State Farm offers savings when you bundle home and auto insurance together on one policy.
- Strong financial backing: State Farm is the #1 home insurance company in the U.S. with over $271 billion in assets. So, you can trust they’ll be there when you need them.
- Robust customer service: Besides local agents, State Farm provides 24/7 customer service via phone, email, live chat, and social media.
State Farm emphasizes local expertise and longstanding experience. It’s a stable option for those wanting robust coverage from an established national brand.
Also Read: Comparison Between Primerica And Northwestern Mutual.
Key Feature Comparison Between Hippo And State Farm
Now let’s dive into a detailed feature comparison of Hippo Vs. State Farm across some of the most important insurance factors:
Cost of Coverage
- Hippo: Tends to be lower cost than competitors, with average savings of about 25% over large insurers. Usage-based discounts can significantly lower premiums.
- State Farm: As a major insurer, State Farm rates can be higher than some competitors and will vary based on location and individual risk factors. But bundling discounts help lower costs.
Claims Process
- Hippo: Claims can be started via mobile app and settled in as little as 3 days after damage photos are uploaded. The process is designed to be simple, fast, and hands-off.
- State Farm: You will need to file the claim with your agent and go through an adjuster inspection. State Farm has a large claims service network but the process is more hands-on.
Discounts Available
- Hippo: Usage-based discounts are the main way to lower costs. Responsible homeowner practices like security systems and leak monitoring earn you lower rates.
- State Farm: Offers multi-policy, multi-car, safe home, and good student discounts. But discounts are fewer than some competitors.
Customer Service Experience
- Hippo: Emphasis is on fast and easy self-service via mobile app and website. But options like live chat, phone support, and AI-powered help articles make it easy to get answers.
- State Farm: Local agents provide personalized advice and support. But State Farm also offers 24/7 customer service support via phone, email, social media, and more.
Financial Strength
- Hippo: A startup insurer, Hippo policies are backed by Topa Insurance and rated “A-” (Excellent) by A.M. Best. So financial backing is good but does not have the long history of a company like State Farm.
- State Farm: The #1 home insurer in the U.S. with over 90 years in business and assets over $271 billion. So it has incredible financial strength and stability.
Technology Offerings
- Hippo: Uses smart home tech and IoT connectivity to monitor home activity and prevent issues. Provides modern conveniences like online account access and smart home device discounts.
- State Farm: Has some tech offerings like Drive Safe & Save program for auto insurance discounts. But tech is not a central focus and the insurance experience is more traditional.
Also Read: Comparison Between New York Life Insurance And Primerica.
Pros And Cons Of Hippo Insurance
Pros:
- Low rates with usage-based discounts
- Fast, simple digital claims process
- Proactive home monitoring and protection
- Discounts on smart home devices
- Modern, app-based experience
Cons:
- Still a young company so not as much reputation
- Reliant on technology which some customers may dislike
- Less opportunity for in-person support
- Limited availability in some states
Pros And Cons Of State Farm Insurance
Pros:
- Local agent support provides personalized guidance
- Tried and true company with over 90 years of experience
- Extensive coverage options and discounts
- Strong reputation and brand recognition
- Large claims service network across U.S.
Cons:
- Rates may be higher than some competitors
- More traditional process can seem outdated
- Not as heavily tech-focused
- Getting quotes and managing policy requires contacting an agent
Also watch this about State Farm!
Frequently Asked Questions (FAQ)
Hippo stands out for its tech-driven approach to home insurance. It relies on smart home integrations, a modern app, usage-based discounts, proactive home monitoring, and an all-digital claims process. This sets it apart from traditional insurers.
While newer, reviews indicate Hippo policies and services meet or exceed expectations. Its financial backing and A- rating give it stability. Overall, Hippo is considered a reputable home insurance option with innovative offerings.
Yes, Hippo is a legitimate insurance company. While policies are serviced through Hippo, they are underwritten by Topa Insurance Company. Topa is rated A- by A.M. Best. So Hippo does provide real, comprehensive insurance.
Hippo’s underwriting carrier is Topa Insurance Company. Topa holds an A- or “Excellent” financial strength rating from A.M. Best. This indicates it has very good ability to meet its ongoing policy and claim obligations.
Also Read: Comparison Between Fidelity And Ameriprise.
Conclusion
So, when considering Hippo Vs. State Farm for your home insurance, here are some key questions to ask yourself:
- Do you want a more high-tech, app-based experience or local expert agents?
- Are you looking for the lowest rates and a seamless claims process or an established brand with a strong reputation?
- Do you already have a relationship with a State Farm agent?
- Does your home have smart devices you want to integrate?
- Is getting usage-based discounts for responsible homeowner behavior appealing?
For city dwellers with smart homes looking for convenient, low-cost coverage, hippo may be the better choice. Suburban homeowners who value personal service and support may prefer state farm.
But you can’t go wrong with either option. Be sure to get quotes from both providers to see which offers you the best service and value. Choosing between Hippo and State Farm depends on your needs and priorities.
Consider aspects like cost, reputation, tech integration, customer service, and discounts offered. Weigh these factors against your personal situation to determine the best provider for you.
