Established in 1928, Farmers Insurance has attained colossal success. With millions of active policies, it caters to the insurance needs of individuals and businesses across the United States. They offer policies to protect your entire life with home, pet, vehicle, and life insurance products.
Farmers collaborates with numerous agents to provide diverse options for home insurance. Their plans are customizable with numerous discount opportunities and unique coverage options.
We have evaluated Farmers’ homeowners insurance options, along with their savings prospects and customer satisfaction. All this is to help you select the most suitable insurance policy for your residence! Our assessment includes a breakdown of Farmers’ range of customized coverage options and available financial ratings. Refer to our Farmers home insurance review below for detailed insight.
Thomas E. Leavey and John C. Tyler founded the Farmers Insurance Company in 1928 to offer insurance for 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.
Farmers homeowners insurance coverages & premiums
Farmers provides comprehensive coverage for its customers. From renters to condos, auto insurance to specialty homes, your property is guaranteed to be covered by Farmers. With their online pricing tool, we were able to see how far these coverages would take us.
For this instance, we used a test address we’ve used before. With this 1,220-square-foot home built in the 80s, we were met with a $3,171.60 premium with CONNECT for Costco members, $1,540 with Allstate, $1,454 with State Farm, and $2,075 with Hippo. The coverages offered at these prices were average with some options for flexibility.
Farmers’ quote tool is easy to follow. It has pictures available to walk us through the process and help us visualize their terms. We were allowed to base the construction of our test home on a few different tiers from economy to premium.
Once it was all said and done, we got our quote. First of all, we were automatically met with seven discounts and the ability to change our coverage. Our price came out to be $1,300 a year. This is well below average for the state of Arkansas, and thousands less than quotes from other companies.
In terms of coverage, this is what we were offered:
- $260,000 worth of dwelling coverage: this was the maximum offered for our test home worth $140,000.
- $13,000 worth of other structures coverage (5% of dwelling coverage): with the option to go all the way up to 100% for $630 more a year.
- $104,000 worth of personal property coverage (40% of dwelling coverage): with the option to go all the way up to 100% for a measly $45 more a year.
- $300,000 worth of personal liability coverage: with the option to go all the way up to $2,000,000 for as little as $61 more a year.
- $1,000 worth of medical payments coverage: with the option to go all the way up to $5,000 for $6 less a year.
- All peril losses deductible of $2,600 (1% of dwelling coverage).
We were given the option to include up to 150% more in extended replacement cost coverage for $200 more a year. There was also a way to include up to a 5% deductible for wind and hail losses, which would have provided us with an even cheaper rate at $908 a year.
While this price is incredible, we got it by being eligible for many of the Farmers discounts (read more about discounts below). We also weren’t provided with the option to add important coverages for water backup or earthquakes.
We know that Farmers provides these coverages at an additional cost. Considering this home is in a particularly dense place for flooding and earthquakes, we would have liked to have seen what those endorsements would cost us.
Farmers homeowners insurance discounts
Our price might not have been so low if it weren’t for the many discounts applied. Based on the initial information we provided, we qualified for these discounts:
- Home buyer: for buying our home
- Claim free: for not filing a claim for 3 consecutive years.
- Good payer: for always paying our bills on time.
- Theft protection device: for having a security system installed.
- Fire protection device: for having fire safety devices in the home.
- Affinity (occupation): for being a part of (or retired from) specific occupational groups or professional affiliations.
- Preferred payment plan: for opting to pay in full. You can also receive this discount for signing up for monthly auto-pay.
We could have been approved for other discounts as well. Depending on your location, you may qualify for:
- Multiline discount: receive this discount for having one other qualifying Farmers insurance product, like auto or life.
- ePolicy discount: receive this discount when you enroll in ePolicy with paperless terms and conditions.
- UL-Approved roofing materials discount: receive this discount for having roof shingles that are approved by UL.
- New home discount: receive this discount when your home is less than 14 years old.
- Home safety discount: receive this discount when your structures (walls, floors, windows) are fortified against natural disasters.
- Green certifications discount: receive this discount for having green certified structures with ENERGY STAR, LEED, or EPA.
- Connected home discount: receive this discount when you have a remote monitoring smart home system.
- Rent-to-own discount: receive this discount when you go from a renters to a homeowners policy with Farmers.
- California earthquake authority discount: specific only to Californians, this discount is available when a customer has a policy with Farmers and the California Earthquake Authority.
- Retirement community discount: specific only to Arizonans, this discount is available for those who live within a retirement community.
- HOA gated community discount: specific only to Nevadans, this discount is available for those who live within a gated community.
- Fortified home discount: specific only to Alabamans, this discount is available for those with homes protected against extreme weather conditions. This can’t be coupled with the home safety discount.
Does Farmers offer manufactured and mobile home insurance?
Yes, Farmers offers policies for mobile and manufactured homes. Farmer’s manufactured home insurance policies are similar to standard home insurance policies in that they provide, dwelling, other structures, personal property, loss of use, personal liability, and medical payments to others coverage.
Also like a standard home insurance policy, there are normally exclusions of coverage for their manufactured home policies. These exclusions include but are not limited to: earthquakes, flooding, normal wear and tear, and theft. It is important to note that there may be additional exclusions due to manufactured and mobile homes posing more risk to Farmers because it is not built on a solid foundation. Homeowners have the option to add-on coverages to their manufactured homeowners policy with Farmers as well.
Farmer’s manufactured home insurance policies are reasonably priced compared to the rest of the industry with a number of factors affecting the price including location, size, age, and condition of the manufactured or mobile home. Farmers may have some discounts available to mobile home owners that can help to lower the premium cost. It is best to check with your local agent to see what options are available to you to customize the policy to your needs.
Farmers homeowners insurance claims process
According to the NAIC, the majority of complaints against Farmers in 2022 were due to their auto policies. As it relates to home insurance, most complaints were due to state-specific claims handling. Delays were another popular claims-related complaint.
According to a few of their customers, claims handling goes relatively smoothly. Some say that their experience with adjusters was pleasant, thanks to their professionalism, ethics, and timeliness.
If you need to file a claim with Farmers, you can report and track your claim from their website. You can also contact their 24/7 claims center at 1.800.435.7764.
What customers have to say about Famers
We scoured the internet to analyze how customers feel about Farmers’ customer service efforts. As it turns out, their customers are pretty split. For every negative review about increasing premiums, there are two about a positive experience.
The NAIC registered a slightly higher-than-average index of complaints in 2022. The index level is always at 1, and Farmers received 1.32. This is a stark increase from their rate of 0.41 from the previous year.
The BBB registered a debilitating 1-star average over nearly 300 customer reviews. Most of these are geared toward poor customer service and surprises with premiums.
Other review sites display a lot more healthy 5-star and 4-star ratings than 1-star ratings. These customers rave about how courteous and knowledgeable their agents and adjusters are.
According to 2022’s J.D. Power’s customer satisfaction study Farmers home insurance ranked below average among the top nationwide insurance companies with a score of 792 while the average was 819.
Famers’ financial strength ratings
The BBB has named Farmers as an accredited business since the 50s. We believe their rating of “A” as opposed to an “A+” has to do with their staggering 1,381 complaints closed in the last 3 years.
In 2020, AM Best upgraded Farmers’ financial strength rating to an A- from a B++. Since June 2022, they back to having a solid A (Excellent) rating for both financial strength and long-term issuer credit.
Weiss Ratings has a slightly less favorable outlook for Farmers. Weiss provided them with a C+ rating for insurance safety. This means that Weiss believes Farmers is in the top third of businesses that demonstrate fair financial security. This comes with the thought that they may face difficulties during an economic downturn.
Farmers home insurance is a well-known name across the nation. They provide you with access to their extensive coverage, which encompasses all necessary industry standards.
Despite offering fewer endorsements than its contenders, Farmers manages to make the most of its insurance products. Their premiums are often lower than the average without any compromise on service or coverage, setting them apart from their rivals.
A massive company like this may find it difficult to please everyone. We still believe their customer service reviews could have been a little more on the positive side.
Overall, Farmers is a quality choice for homeowners seeking comprehensive coverage options and affordability.