Understanding State Farm Utility Rating Credits: Homeowner Insurance

State Farm's utility rating plan places insured homeowners in different rating categories based on the age of the home and its utilities, including the electrical system, plumbing, heat and air conditioning. A new home with a new system would be eligible for a discount from the base premium, which results in a utility rating credit. Each state has a series of laws, regulations and guidelines regarding homeowners insurance policies. It's best to contact a local agent to inquire about specific coverage options and details in your area.

Credits and Surcharges

As of the date of publication, State Farm offers a utility rating credit on newer homes. In some locations the credit is available to homes less than 15 years old; in other states the credit is limited to homes 10 years old or less. New homes receive the greatest discount, which can be as high as 10 percent savings on your policy. Each year the credit diminishes as the home ages. Generally, you lose 1 percent of the discount each year. Older homes that have been fully renovated with new utilities may qualify for a credit. Homes above a certain age -- usually 40 or 45 years old -- are subject to a utility rating surcharge in certain locations.