Farmers Insurance: An Overview
Thomas E. Leavey and John C. Tyler founded the Farmers Insurance Company in 1928 to offer insurance to the farmers and ranchers’ vehicles. As the years go by, the company expanded and adapted to innovations and the changing needs of Americans. Today, they don't just offer vehicle insurance, they also provide insurance for homes and small businesses with a wide range of insurance coverage options and financial services, such as annuities and mutual funds. They are serving more than 10 million households across all 50 states in the United States.
This company is a division of Zurich Financial Services, which is a multinational firm known all over the world. Farmers stand as its United States branch for life insurance products, as well as casualty and property insurance. 21st Century Insurance, Foremost, Bristol West, and Farmers New World Life Insurance Company are brands that help the agents of Farmers Insurance to become more flexible in writing their policies.
As mentioned above, Farmers provides complete policies for home insurance to almost any type of residence. Other than the usual risks they cover, such as storm or fire damages, they also cover payments for damage repairs by using eco-friendly or green building materials. This company also have a claim forgiveness option, which will be an advantage for you since not all home insurance companies in the industry offer this type of policy.
Their coverage options are easy to find, compared to other insurance companies, which is a big benefit for you, especially if you want a customized policy. However, their weak point is the way they communicate with their customers. Customers aren't that pleased with their customer service, even if the company boasts that they have excellent customer service.
Their customers also complained about their legitimate claims being denied and being dropped from their policies. In the 2018 customer satisfaction survey of J.D. Power, the company got an average rate, which isn't a great score when it comes to the insurance industry.
The company claims that they provide excellent customer service, complete insurance policy coverages, and affordable rates to every individual residing on the 50 states they're serving in the United States. They also claim to help their customers get back in their feet after a disaster by doing the best that they can.
Is Farmers' Claim True?
Farmers Insurance Group is getting a lot of complaints recently, especially about their customer service. On 2002, Texas policyholders filed a lawsuit to the Farmers Insurance Group because the company had allegedly violated the Texas Deceptive Practices Act and Texas Insurance Code by charging their customers’ home insurance policies with excessively high rates while reducing the coverage. Farmers have been forced to pay 84.4 million USD in 2015 to make everything settled.
Other than that, there are also allegations that when their customers are filing multiple claims, they are being dropped from their policy, and that they’re failing to make payments to legitimate claims.
However, they are really offering complete insurance policies for homes, whether it’s specialty or traditional, mobile homes, or condominiums. These policies will protect your home against major risks, such as theft, storm, and fire damages. If you want a customized policy, they have some several options for you.
When it comes to their affordability, they don't offer that many discounts compared to other insurance companies. You can save more money with them when you get an auto and home bundle for your insurance policy, or if you have renovated your home recently. To find what discount is available in your state, ask a Farmers agent because there are different additional discounts based on the state you’re in. Therefore, Farmers’ claims aren't all true.
Farmers Home Insurance Coverage
Their Farmers Smart Plan Home has three basic packages, which can be customized for you. These includes:
- Standard Package - If you’re a new homeowner and just starting out, this package is right for you since it’s the most affordable.
- Enhanced Package - Compared to the Standard package, it includes features such as covering the costs of your roof replacements, and it accommodates higher policy limits.
- Premier Package - This package comes with personal property coverage and has the highest customizable policy limit among the three. If specific requirements are met, Guaranteed Replacement Cost coverage for your home can be included.
Regardless of the package that you will choose, it will include:
- Declining Deductibles - Farmers will give 50 USD off annually if your policy is in force.
- Claim Forgiveness - If you haven't filed any claims after 5 years or more, this will waive the surcharge.
You can also add other individual options to your home insurance policy, but you have to ask the Farmers agent in your area if those options are available in your state. Here are some of them:
- Contents replacement
- Identity Shield
You can only get discounts if you avail an auto and home insurance bundle to Farmers. Installing a burglar or smoke alarm can get you some discounts as well. But, other than that, there are no discounts available. Always ask your local agent to know the discounts available in your area because there might be additional discounts depending on where you live.
Farmers Insurance Group got 4.09 out of 5 stars on Clearsurance. There's a lot of great customer feedbacks about them, saying that it's easy to file claims and that their coverage options are great even if the cost is a little high. However, there are also customers that rated them with just 1 or 2 stars, saying that it's hard to communicate with the agents, or they have bad customer service. They are even saying to steer away and don't use Farmers Insurance.
State Farm and Farmers have the same rating in the 2018 J.D Power customer service survey, which is about average. However, State Farm is known for its great customer service, unlike Farmers.
Farmers Pros and Cons
For the last part of this review, the advantages and disadvantages of getting a home insurance policy with Farmers will be broken down.
- Your rates won't increase because of claim forgiveness. It means that they will forgive you the first time you will make a claim if you become claim-free after six years.
- They have a feature called Interactive Insurance Map, which shows what areas in your room are needed to be insured.
- If you're a policyholder, you will get the company’s reward card. You can redeem travel, statements credits, and others by using it. It's available in New Jersey, Washington, and Ohio.
- They have a mobile application to manage your bills, view your policy documents, and more.
- They just scored about average in J.D Power ratings, which means their customer satisfaction is low.
- They only have a few discounts.
Getting a home insurance policy in Farmers is a good choice if you want to have unique coverage options, however, since they’re not that reliable when it comes to customer care, you might want to check some other options.
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