State Farm Maximum Number of Insured Properties

State Farm Maximum Number of Insured Properties

Investor · San Francisco, CA · Member since 2017 · 303 posts · 327 votes

Has anyone run into a problem getting over five properties insured for any one entity with State Farm? (Not umbrella.)

I have six+ insurers that I use across multiple states. Recently, State Farm became the best choice for one particular property, by a mile. A local agent there thought that as long as I don’t already have five properties insured with State Farm in that state, I am good.

I switched to State Farm, but then the underwriter turned it down because this was the sixth SF property I would have under the same entity name across multiple states. That agent said there was nothing he can do. Ok.

I just spoke with a local to me SF agent: He claims he has clients with over 10 properties with State Farm under same name and in same state, and that I should “force” the agent who initially wrote the policy to file an appeal, as this was likely an inexperienced underwriter.

Before I press the issue with that agent, I’d like to see if anyone has run into similar.

(Please do not suggest to change the entity name as a solution.)

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Matthew TysonPro Member
Investor · San Antonio, TX · Member since 2022 · 43 posts · 42 votes
1y

I actually received notice from my SF agent about the same issue. He said that it came down from the top that they are no longer allowed to write more than 5 policies in an LLC. He has tried pressing the issue but has had no luck. Nothing to gain for him to not fight it, as he would be turning down future business. He is still working on getting more clarity and looking for a solution but he is not optimistic or happy about the situation. We are located in San Antonio, TX.

Some background on my agent: I trust my him very much, close friend, holds many policies for myself and family. When he first went out on his own and opened his own branch, I told him I never thought he could beat my current policy rates for my rentals but if he could get close I would switch to him. I wanted to him to have the business I just didn't think it would be possible for SF farm to be competitive.  I was shocked at what he was able to deliver and being able to annoy him non stop is a huge bonus. 

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  • Developer · Moscow Idaho · Member since 2024 · 224 posts · 143 votes
    1y

    There are all kinds of options.  I have always found state farm to be expensive.   the agent should be able to call and figure it out. 

  • Developer · Moscow Idaho · Member since 2024 · 224 posts · 143 votes
    1y

    LLC or not LLC?

  • Insurance Agent · Member since 2020 · 178 posts · 76 votes
    1y

    This can be an issue with multiple carriers, Travelers being another one of them

  • Investor · San Francisco, CA · Member since 2017 · 303 posts · 327 votes
    1y

    Update: I ended up pressing the issue with the State Farm agent, asking him to verify that the info his underwriter gave him was correct. I never heard back from the agent.

    ~Two weeks later, I got renewal declarations for a bunch of my other local properties, so it was time to shop around in that market again. I decided to give State Farm another try - with a different local agent.

    I advised her of the potential issue that she should check on before bothering to quote my multiple properties. She *listened,* and spoke with her underwriter…

    Turns out that these things do vary by region, and I can get up to five properties insured with State Farm there.

    Moral: If it may seem like your agent is not paying enough attention to your needs, find another.

  • Matthew TysonPro Member
    Investor · San Antonio, TX · Member since 2022 · 43 posts · 42 votes
    1y

    I actually received notice from my SF agent about the same issue. He said that it came down from the top that they are no longer allowed to write more than 5 policies in an LLC. He has tried pressing the issue but has had no luck. Nothing to gain for him to not fight it, as he would be turning down future business. He is still working on getting more clarity and looking for a solution but he is not optimistic or happy about the situation. We are located in San Antonio, TX.

    Some background on my agent: I trust my him very much, close friend, holds many policies for myself and family. When he first went out on his own and opened his own branch, I told him I never thought he could beat my current policy rates for my rentals but if he could get close I would switch to him. I wanted to him to have the business I just didn't think it would be possible for SF farm to be competitive.  I was shocked at what he was able to deliver and being able to annoy him non stop is a huge bonus. 

  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    1y

     Allstate has the same 5 property limit, I have 10 with them. There are two work around I’ve discovered so far… 

    When I switched 5 at once my agent wrote a “business case letter” to the main office about why they should take my business and that worked. 

    Since then I’ve added two more. One in state and one out of state. What the agent did was add the new property as a primary residence. As such, it’s instantly accepted. Then the next day they switched it to a rental. No issues in the years I’ve owned them since then. That would be harder with several at once, but incase you need to add one more. Otherwise try the business case letter. 

  • JD MartinBusiness Member
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    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
    1y

    This must be a new issue with SF because they were my insurer for years before I switched providers, with more than 5 properties. Allstate did have a 5 property limit years ago when I was with them, so for awhile I had to have multiple insurers until I ditched AS. 

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    • Matthew TysonPro Member
      Investor · San Antonio, TX · Member since 2022 · 43 posts · 42 votes
      1y
      Quote from @JD Martin:

      This must be a new issue with SF because they were my insurer for years before I switched providers, with more than 5 properties. Allstate did have a 5 property limit years ago when I was with them, so for awhile I had to have multiple insurers until I ditched AS. 


       From what I am hearing it is new to SF as of this year, or new at least to Texas

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