Farmers Homeowners Insurance Review

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Farmers Homeowners Insurance Review

In business since the 1920s, Farmers Insurance has been a mainstay of the insurance industry for nearly a century. The company is known for offering a range of insurance services, including homeowner policies, car insurance coverage, and more. This company is great for homeowners of all backgrounds, as it has a three-tiered menu of services that appeal to every financial situation and preference.

Whether you live in a house, condo, or manufactured home, Farmers Insurance Group provides insurance coverage to keep your residence and possessions protected.

Pros Cons
Declining deductibles
Extensive coverage
Claims-free discount
Claims forgiveness
Discounts for carrying multiple policies
Fees charged on top of premiums
Premiums can increase each year

The Homeowners Insurance Factors We Analyzed

Pricing

Farmers Insurance Group features three tiers of homeowners insurance service, each of which is tailored to specific preferences. These tiers include:

  • Standard: The Standard homeowners insurance package is great for homeowners who are just starting out, who seek to balance affordability with the services that matter most to them.
  • Enhanced: A step above Standard coverage, Farmers’ Enhanced packages target established homeowners who require higher policy limits and additional coverage features.
  • Premier: The top-tier package offered by Farmers Insurance Group is the Premier package, which includes the highest limits available, most extensive coverages for personal property, and Guaranteed Replacement Cost coverage if your home meets certain requirements.

There are several factors that can impact the cost of your homeowners insurance premium.

Within your control:

  • Home improvements and remodeling: If you are renovating your home, chances are, your home’s value will increase after completion of the project. When your home’s value goes up, so does your insurance premium.
  • Attractive nuisances: Structures like pools and trampolines may offer hours of amusement, but they also raise the risk of an accident occurring. Therefore, be aware that premiums tend to rise if your property includes such attractive nuisances.
  • Wood-burning stoves: Having a wood-burning stove in your house can raise red flags for your insurance premium, so be sure to provide documentation to your insurance agent that shows your stove was installed by a licensed professional.
  • Your employment: If you work from home, you may need additional coverage to keep any electronics, company property, or vehicles stored on your property safe.
  • Security systems: You may be able to reduce your homeowners insurance premium by installing additional safety measures, such as replacing old locks and installing a security camera system.
  • Pets: Farmers provides liability coverage that includes the event of your dog biting someone on your property. If you’re looking to adopt a new pup but don’t want your new addition to lead to higher homeowners insurance costs, be sure to find a dog that is not considered to be an aggressive breed.

Outside of your control:

  • Age of your house: The older your house, the more likely the need for repairs, renovations, and updates, all of which can lead to an increase in your insurance premium. Older homes may also be more vulnerable to damage from weather events, therefore requiring more extensive protection coverage.
  • Number of prior claims filed: You can’t go back to the past and stop yourself from filing an insurance claim, so this factor is somewhat out of your hands. The fact remains that the more insurance claims you have filed, the riskier you appear to insurance carriers. This can lead to higher premiums or loss of coverage entirely.
  • Geographical location: Unless you’re poised to move on a whim, you likely can’t control the geographic location of your home for homeowners insurance purposes. Like car insurance rates, home insurance premiums may vary from state to state and even from city to city.

Customer experience

Each year, J.D. Power conducts its annual U.S. Property Claims Satisfaction Survey, which measures customer satisfaction based on a range of factors, including settlement, claims servicing, estimation process, repair process, first notice of loss, and overall satisfaction. The 2019 study found that Farmers Insurance Group scores moderately across the board and holds an overall satisfaction rating of three out of five stars. Farmers earned its highest marks of four out of five in the settlement and repairs process categories but averaged three out of five stars in the remaining categories.

The National Associate of Insurance Commissioners (NAIC) reports that four of the type five customer complaints about Farmers Insurance Group from 2018 involve claim handling, and more specifically, customers reported dissatisfaction with the settlement offer, denial of a claim, delays, and adjuster handling. The fifth top complaint about the company is categorized as a Policy Holder Service issue; in particular, communications delays and lack of responses from representatives. According to the Farmers National Complaint Index Report from 2018, the company received fewer than the average number of complaints for a company of its size.

To combat potential issues that could arise with maintaining contact with Farmers Insurance Group, be sure to work with a local agent who you can visit in person, rather than relying on phone calls or online tools.

Coverage

Farmers Insurance offers a wide range of coverage options to fit every lifestyle and preference. Coverages include homeowner, condo, mobile and manufactured, specialty home, and identity shield protection. Individual coverage options extend to property damage; stolen, damaged, or destroyed possessions; medical payments regardless of liability; temporary relocations, and the replacement of lost documents such as passports. There are also options for adding earthquake and/or flood coverage.

To obtain an appropriate amount of coverage for the things that matter most in your life, you should determine the value of your assets. Calculate your net worth by adding up everything you own­ (your assets) and subtracting everything you owe­ (your liabilities).

Deals, discounts, and add-ons

Popular optional coverages include Eco-Rebuild coverage, which means homeowners can receive up to $25,000 toward the additional cost of replacing materials and appliances with more sustainable options.

Another popular add-on is Contents Replacement Cost Coverage, which reimburses you for the cost to replace damaged items, rather than the cost of the item at the time of purchase (which typically depreciates over time).

Furthermore, Farmers-insured homeowners can take advantage of Farmers Identity Shield to help protect you from identity theft or help you recoup your losses if you have already fallen victim to identity theft.

Like many other insurance providers, Farmers also offers a discount when you bundle multiple policies. Possible bundling options include auto, life, business, and recreational insurance.

Farmers Homeowners Insurance Overview: Financial Strength, Availability, and History

Farmers Insurance Group has been accredited with the Better Business Bureau (BBB) since 1951 and currently holds an A+ rating with the company. Despite this high rating, Farmers has a 1.5-star rating among 72 customer reviews on the BBB’s website. Common complaints include the length of time required to resolve claims, periodic premium increases, and difficulty in maintaining contact during the claims-handling process.

According to YouGov, Farmers Insurance is the ninth-most-popular insurance company and carries a 39% positive opinion with customers. Ninety percent of Americans have heard of this company, and only 8% hold a negative opinion of Farmers.

  • In business since: 1928
  • S&P Global financial strength rating: A
  • Moody’s financial strength rating: A2
  • A.M. Best financial strength rating: A (Excellent)
  • States served: 50

The Competition

J.D. Power 2019 U.S. Home Insurance Study score
J.D. Power 2019 U.S. Property Claims Satisfaction Study Score
NAIC Customer Complaints
Farmers
3/5
3/5
Fewer complaints than average
State Farm
3/5
3/5
Average number of complaints
Progressive
3/5
N/A
More complaints than average
Allstate
3/5
3/5
Fewer complaints than average

The Bottom Line

Farmers Insurance Group is a nationally recognized insurance carrier that has been in business for more than 90 years. Although the company receives mediocre overall reviews in customer satisfaction, it scores highly regarding claims settlement. With an A+ rating from the Better Business Bureau, Farmers is a reliable insurance provider that addresses client issues and complaints.

With its diverse insurance coverage offerings, this company is great for homeowners of all backgrounds. With three tiers of coverage, homeowners can select standard, enhanced, or premier levels of service, depending on their needs.

Farmers Homeowners Insurance FAQ