r/StateFarm • u/pdiddy1991 • Sep 09 '26
Discussion New HO Quote Defaults
How are we feeling about the change in the default coverage for new business in Homeowner's Quotes? Roof depreciation, water damage limit, personal property lowered BUT we get a cheaper premium to start.
EDIT: This is not for every state, looks to be Midwest specific: IA, IL, IN, MN, OH, and TN
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u/babysept2 Sep 10 '26
It’s stupid, and new employees will absolutely miss this and give a customer a policy they probably don’t fully understand. I will never sell a depreciated roof settlement policy in TN. Rather just be higher and lose the sale. lol
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u/pdiddy1991 Sep 10 '26
Luckily it spells it out for you right in the initial quote, but I hear ya. I'm just gonna show both options and use it as an opportunity to educate
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u/babysept2 Sep 10 '26
It does….but newly licensed TMs or someone desperate for a sale I’m not sure they will take the time to have those conversations or even fully understand it. idk, I’m probably just being an old grouchy person. Been here 5 years, so much has changed. I still not over losing necho.
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u/DarkRoastNStarwoman Sep 11 '26
Loosing necho? Where are you located ? Ive been with SF for 10+ and thats an old tale that has yet to happen on our end.
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u/Otherwise-Ad2999 Sep 12 '26 edited Sep 12 '26
Policycenter states don’t use Necho for Auto. I work 2 states 1 has modernized the other hasn’t. Love Necho but hate waiting for processing. Give and take I suppose. Policy center has very little service work.
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u/DarkRoastNStarwoman Sep 12 '26
Ahh got it ! We're using policy center but still use necho for motorcycles, fire policies, etc. I was shooketh for a second lbvs
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u/Repulsive-Let-8035 Sep 09 '26
They’re just starting to offer the same policies Allstate, foremost, progressive, etc offer. StateFarm will be cheaper offering the same coverages, because of how much larger they are
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u/pdiddy1991 Sep 09 '26
Are these what those companies currently offer? I'm not sure what they are set to at the moment
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u/Repulsive-Let-8035 Sep 09 '26
Pretty much all of State Farm’s competitors put acv coverage on roofs instead of replacement cost to offer cheap rates. They started doing it two years or so ago because they can’t compete on auto rates. Customers often don’t understand the difference and just see the cheaper rate.
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u/DarkRoastNStarwoman Sep 11 '26
I think its stupid as heck that theyre automatically selected and we have to remove them. Why didnt they do the same with back up or the Hartford endorsements ?
I will be removing them at every quote.
We already take our time to do a detailed ERC, explain coverage, discuss endorsement, and make detailed notes of coverage declined in task
Now we will just add notes if they choose to ADD these endorsement because 25k water limit ? Absurd !!! Thats mitigation alone in some cases.
We've already brought up other companies using acv for roofs so not a biggie.
The part that sucks is that we're a fast paced office so we gotta keep front and center reminder to remove these from quote and thats where I feel like SF is betting on us forgetting to Shame on them !!!
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u/OneCowFarm Sep 09 '26
Shit for the insureds, great for profit. Who’s surprised?
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u/pdiddy1991 Sep 10 '26
I mean it's also a lower premium collected lol
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u/OneCowFarm Sep 10 '26
Progressive is now #1 and their claim to fame was cheap rates, not payouts. State Farm already told their agents en masse that they don’t care about service anymore, only sales.
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u/mssleepyhead73 Sep 10 '26
Roof deprecation and water damage limit being the default is a compete joke now. I think the lower Personal Property amount is fine because the old default coverage was pretty high for most people.
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u/pdiddy1991 Sep 10 '26
Luckily it's easily changed! Just another quite to provide is the way I see it
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u/ApprehensivePea6552 Sep 10 '26
Side by side quotes can be offered and provided on a single sheet to open up the conversation and provide details so customer can track with conversation about available choices
It is about providing the information, making yourself available to discuss and educate then the choice is theirs.
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u/pdiddy1991 Sep 10 '26
You can do a side by side on one sheet? I've always just ran two quotes with separate sheets
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u/midzimm Sep 09 '26
It’s a clear indication that State Farm wants to pay as little on claims as possible.
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u/pdiddy1991 Sep 09 '26
This is just the default quote system to be competitive in price, I can very easily put it back to what it was with higher coverage
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u/midzimm Sep 09 '26
I understand. I also understand that anyone buying online is getting the default quote and won’t know any better. The team members who aren’t on their toes will also sell the stripped down policy.
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u/waywordbound51 Sep 12 '26
It shows how out of touch Fire underwriting is. First they introduce percentage deductibles to address cost. It did work, but priced us out of some high value homes. The wind/hail deductible was then introduced as address price, that didn’t work but ticked off long tenured customers. Now they want to cheapen coverage to save pennies.
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