Safeco Homeowners Insurance Review
Safeco is an insurance company owned by Liberty Mutual. It operates through independent agents located across all 50 states. The company offers a variety of insurance packages and coverage options including protection against identity theft and a wide range of vehicles. In addition, Safeco offers its customers several benefits and savings when they purchase more than one policy.
Unfortunately, Safeco homeowners insurance doesn’t have the best record of customer service. Safeco fails to live up to industry standards in terms of customer service. The company has more complaints and lower overall customer ratings than other homeowners insurance companies. The company is best for those who want homeowners insurance and may also require additional coverage, such as identity recovery, pet health, or car insurance.
The Homeowners Insurance Factors We Analyzed
To get a homeowners insurance quote, you need to contact one of Safeco’s independent agents. They’ll use the information that you provide to offer you a quote.
There are many factors that can influence your insurance costs. However, the average homeowners insurance premium in the nation is $1,192 per year. Your costs depend on where you live, whether your area is at risk for flooding or other natural disasters, the condition and age of the home, its value, your preferences for the deductible, your credit score, and more.
If you opt for a higher deductible, this can mean your monthly payments are lower. However, should you need to make a claim, you’ll have to pay more out of pocket before the insurance kicks in. You can also keep your costs lower by avoiding having items like trampolines and swimming pools on your property.
Compared to other insurance companies like Amica and State Farm, Safeco falls short on providing a quality customer experience. According to the 2019 J.D Power U.S. Home Insurance Study, the company falls below average when it comes to overall customer satisfaction, with a star rating of 2 out of 5. According to the National Association of Insurance Commissioners, the top two complaints about Safeco homeowners insurance are unsatisfactory settlements and delays in claims handling. These same two complaints have topped the list for Safeco since 2017.
Despite complaints, the company does put forth an effort to make life simple for its customers by way of technology. Safeco offers an easy-to-use mobile app and Insurance Advisor that homeowners can use with devices that feature Alexa.
In addition, Safeco allows you to file a claim online rather than going through your specific insurance agent. Other customer support services related to your account can also be performed centrally through the website or the company’s toll-free phone number.
Safeco’s homeowners insurance covers your home and property. One perk it offers is that belongings, such as clothing or even your computer, are covered by your policy, even when you’re traveling abroad. In addition, standard coverage also includes temporary housing costs if your home is unlivable during repairs or rebuilding. Liability insurance is also included in case someone is injured on your property. Safeco’s standard coverage is comparable to other insurance companies like Amica and Allstate. However, despite the various add-ons available, Safeco falls short on providing details about other important coverage for a home business or disaster coverage.
A smattering of other coverage options is available as add-ons. Some of them include identity recovery in case of identity theft and special protection for valuables. Should your refrigerator or stove unexpectedly stop working, Safeco homeowners insurance offers equipment breakdown coverage for damage unrelated to regular wear and tear. You can also opt for coverage that matches the price of property replacement rather than its true value. In other words, it would cover the cost of buying a new dining set similar to the one you owned instead of only matching the value of your used set.
Deals, discounts, and add-ons
You can save on your premium if you have a newer home or if you install a burglar alarm. Package deals are also a big point of savings. Safeco may give you up to a 15% discount if you choose one of its packages that combines your homeowners and auto insurance. As a Safeco customer, you also gain access to deals that help you save when buying a new car or lower your costs of maintaining your home.
Safeco Homeowners Insurance Overview: Financial Strength, Availability, and History
Safeco has been providing insurance for over 100 years. Despite its long history, only 50% of the population knows of the company. It’s ranked the 32nd most popular insurance brand. This low ranking may be in part because Safeco has a below-average customer satisfaction rating.
The company also falls below industry standards on average customer complaints and recorded twice as many complaints as other insurance companies. Unfortunately, Safeco’s listing with the Better Business Bureau (BBB) is under its parent company, which makes it impossible to distinguish which customer complaints are specific to Safeco. While Liberty Mutual is in good standing with the BBB and has an A rating, it has a 1-star customer reviews and complaints average. Grievances of customers about Liberty Mutual include high premiums, poor customer service, and trouble completing claims.
On the positive side, Safeco homeowners insurance is backed by strong financial strength ratings. This financial security can give you peace of mind as a customer that there are funds in place to pay for your claim if and when you need to make one.
- In business since: 1923
- S&P Financial Strength Rating: A-
- Moody’s Financial Strength Rating: A2
- AM Best Financial Strength Rating: A
- States served (availability): 50
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All information accurate as of May 15, 2020.
How We Evaluated Safeco Homeowners Insurance
Factors evaluated include the providers financial strength as indicated by organizations such as AM Best and Standard & Poors, customer service ratings and support, as well as average premiums.
The Bottom Line
Finding the right home insurance takes time; homeowners can benefit from sourcing a local agent to help with the research. Of course, what Safeco — and every other insurance company — advertises on its website will not be indicative of your personal experience. What really matters is the actual available coverages and discounts reflected on the individual policy. It’s best to compare quotes from multiple providers before making a decision, and if doing so seems too daunting to tackle solo, consulting a local agent to see what is offered in the area and could do the trick.
Safeco Homeowners Insurance FAQ
Safeco offers various property insurance options for renters, condos, and landlords. Auto and vehicle insurance policies are also available, including special coverage for classic cars, boats, and other vehicles. Additional insurance policies include pet health, identity theft, and even umbrella coverage.
The amount of home insurance you need depends on many factors. Some things you should consider include the cost of replacing or repairing your home in case of a disaster, the value of your belongings, and what your risk level is. For example, if you live on a coast that’s often affected by hurricanes or in an area prone to flooding, you may need more coverage.
Safeco’s parent company, Liberty Mutual, is based in Boston. However, the company offers services on a national level.
Safeco uses a wide network of partner underwriting companies. All of the companies are members of Liberty Mutual Group, Safeco’s parent company.
Primary insurance includes coverage for rebuilding or repairing your home, personal belongings, and living expenses while your home is under repair. In addition, it includes liability coverage in the event that someone is injured in your home. Some add-on options include equipment breakdown coverage and identity recovery in the case of identity theft.