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 types and coverage options including home, auto, umbrella and identity recovery policies. 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. The company has more complaints and lower overall customer ratings than other homeowners insurance companies. However, Safeco may still be a good choice for those who want homeowners insurance and may also require additional coverage, such as identity recovery, pet health insurance, or car insurance.
Safeco has been providing insurance for over 100 years. Despite its long history, the company is not as well known as other insurance providers. Our evaluation concluded that this could have to do with Safeco having a below-average customer satisfaction rating.
The company also falls below industry standards on average customer complaints and half again as many complaints as other home insurance companies, according to the National Association of Insurance Commissioners’ (NAIC) Complaint Index. Here is a list of pros and cons for Safeco to help you determine if this company provides what you need.
- Packaged deals available: You can save for combining home and auto policies and could save even more if you add coverage for your boat, RV or motorcycle.
- Various discounts: Safeco offers discounts for installing a home security system and being a new homeowner, among others.
- Mobile app and Insurance Advisor skill with Alexa: You can enable Safeco’s Insurance Advisor skill with Alexa and access quizzes, ask insurance questions and learn more about the industry.
- Below-average customer satisfaction: Safeco and its parent company Liberty Mutual both received below-average rankings in J.D. Power’s 2020 Home Insurance Study.
- Limited discounts: Compared to other providers, Safeco offers fewer ways to save on home insurance.
Many factors can influence your insurance costs. Your policy costs depend on where you live, the condition and age of the home, its value, your deductible level, and your claims history. However, keep in mind that the average homeowners insurance premium in the nation is $1,618 per year based on quoted annual premiums from Quadrant Information Services.
If you opt for a higher deductible, your premium will likely be lower, but if you need to make a claim, you’ll also have to pay more out of pocket. You may also be able to keep your costs lower by avoiding risky features such as trampolines and swimming pools on your property.
Safeco’s homeowners insurance covers your home, any outbuildings you have, and your personal property. In addition, standard coverage also includes temporary housing costs if your home is unlivable during repairs or rebuilding and liability insurance is also included in case someone is injured on your property. Safeco’s standard coverage is comparable to other insurance companies.
Other coverage options are 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 might also opt for coverage that matches the price of property replacement rather than its actual cash 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.
Compared to other insurance competitors, Safeco falls short on providing a quality customer experience. According to the 2020 J.D Power U.S. Home Insurance Study, the company falls below average when it comes to overall customer satisfaction, with a score of 802 out of 1,000. According to the NAIC, more complaints are filed against Safeco than is standard in the insurance industry.
Despite complaints, the company does put forth an effort to make insurance simple for its customers by utilizing technology. Safeco offers an easy-to-use mobile app and the Insurance Advisor feature that homeowners can use with Alexa connected devices. In addition, Safeco allows you to file a claim online, by phone, or by calling your local 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.
You may be able to save on your premium if you have a newer home or install a burglar alarm. Package deals are also a big point of savings. Safeco gives a discount if you choose one of its packages that combines your homeowners and auto insurance. However, compared to other insurance providers, Safeco does not offer as many discounts.
We evaluated the company based on its customer rating and experience, financial stability, and coverage to create our Safeco Homeowners Insurance Review. To compare this company with home insurance companies across the board, we then calculated a Reviews.com score based on the following:
- Customer Ratings: Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage: As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence: It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
- Customer Experience: The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
|Reviews.com Score||AM Best Financial Strength Rating||2020 J.D. Power Score||NAIC Customer Complaints|
|Safeco||3.5||A||802/1,000||More complaints than average|
|State Farm||3.75||A++||829/1,000||Fewer complaints than average|
|Geico||2.75||A++||N/A||Fewer complaints than average|
|Allstate||4||A+||829/1,000||More complaints than average|
All information accurate as of 08/25/2021
Safeco vs. State Farm
When comparing Safeco with State Farm’s homeowners insurance, you may have noticed that State Farm has a higher J.D. Power score than Safeco overall. But State Farm has fewer customer complaints than the industry’s average, whereas Safeco has more. As for financial strength, Safeco is only graded with an A, while State Farm has a more robust A++ rating.
When it comes to discounts, both Safeco and State Farm are relatively limited in their offerings, although Safeco does have a few more. Because of its fewer complaints and stronger financial strength, State Farm edges out Safeco with the Reviews.com rating.
Safeco vs. Geico
Concerning customer satisfaction, Safeco homeowners insurance has an above-average number of complaints while Geico has a 0.00 complaint index score for its homeowners insurance product. However, because Geico primarily focuses on auto insurance, the company may not generate enough home insurance business to warrant a complaint index score by the NAIC. . Geico provides home insurance through partners and Safeco uses a network of underwriting partners under the umbrella of its parent company Liberty Mutual.
In terms of financial strength, Geico has a stronger company ranking with an A++ from AM Best, while Safeco only has a grade of A. Safeco has more discounts available for its customers than Geico, which is not surprising given Geico’s focus on auto coverage. Both companies offer homeowners coverage and policies nationwide.
The Bottom Line
Safeco has been in the insurance market for a long time, but it is still not as well known as other insurance carriers. Its low popularity could be because Safeco has a below-average customer satisfaction rating. What Safeco — and every other insurance company — advertises on its website may not indicate your personal experience or offerings that the company has across the United States. Safeco’s coverage, selection of packaged deals, discounts and policies against identity theft might be worth taking a look at when comparing quotes for home insurance.
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 coverage, identity theft and umbrella coverage.
The amount of home insurance you need depends on many factors. To estimate your homeowners insurance, you might want to consider the cost of replacing or repairing your home in case of a disaster, the value of your belongings and the risk level your property has. For example, because not all perils are covered by standard home insurance, you may need additional coverage for hazards like flooding or earthquakes.
Safeco uses a wide network of partner underwriting companies. All of the companies are members of Liberty Mutual Group, Safeco’s parent company, and are under separate and distinct legal entities.
If you ask yourself, “is Safeco home insurance good for me?” consider that its primary insurance includes coverage for rebuilding or repairing your home, personal belongings, and living expenses while your home is unlivable. Safeco also provides liability coverage if someone is injured in your home. There may also be optional add-on coverage for equipment breakdown, identity theft and valuable articles such as fine art, jewelry, antiques, and collectibles, although availability could vary based on your state.