I know DJI refresh gets a fair number of negative comments. I have had it for my first DJI Phantom 4, and after having a rather unhappy interaction with a tree on a decent, it paid for itself for a gimble/camera and body repair.
I now have a Pro 4 plus. It has gone back for warranty service, but with DJI refresh they sent me an Air second day label and expedited the repair in 10 days from ship to return. They sent me a new drone and remote when I complained of a remote control issue. The left stick failed to function.
The State Farm is for a complete drone failure. And, I'm not certain if you dare to file more than one claim.
DJI refresh will repair/ replace. The limit is not based on whether they decide to replace the drone, but on the estimated cost of repair.
And yes, you need to return the drone.. A complete loss at sea is an issue. Then you might consider State Farm or home owners.
And, every policy is different. As has been noted before, filing with a home owners policy can and will run the risk of a rate increase that might in the long run exceed the benefits of the claim. And, homeowners does have the option of cancellation with notification. You will have no recourse if they cancel due to claims that make you a risky investment.
Do your homework,insurance policies are STATE controlled and local. They change by locality. DJI refresh is dependent on a company.
Nothing is perfect.