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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.
Safeco has been providing insurance for over 100 years. Despite its long history, it is ranked as the 37th most popular insurance brand. Our evaluation concluded that its low ranking has to do with Safeco having 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, according to the National Association of Insurance Commissioners’ (NAIC) Complaints Index. Here is a list of pros and cons we found while doing this Safeco home insurance review to help you determine if this company provides what you need.
- Packaged deals available: You can save up to 15% combining home and auto policies and 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 its Insurance Advisor with Alexa and access quizzes, ask insurance questions and learn more about the subject.
- Below-average customer satisfaction: Safeco and its parent company Liberty Mutual are among the lowest-rated providers in J.D. Power’s 2019 Home Insurance Customer Satisfaction Index.
- Delays in claiming: Some cases take longer than others and customers complain about delayed responses.
- Not too popular: Although Safeco has been around for almost 100 years, according to YouGov.com, only 50% of Americans have heard its name.
Many factors can influence your insurance costs. Insurers such as Safeco will use all the information you provide to offer a more accurate quote. Your policy 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. However, keep in mind that the average homeowners insurance premium in the nation is $1,211 per year.
If you opt for a higher deductible, this can mean your monthly payments are lower, but if 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 risky features such as trampolines and swimming pools on your property.
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 and liability insurance is also included in case someone is injured on your property. Safeco’s standard coverage is comparable to other insurance companies but it doesn’t provide many details about other important coverages for home businesses or disasters.
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 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.
Compared to other insurance competitors, 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 (NAIC), the top two complaints about Safeco homeowners insurance are unsatisfactory settlements and delays in claims handling.
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 the Insurance Advisor feature that homeowners can use with Alexa connected devices. 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.
You can save on your premium if you have a newer home or install a burglar alarm. Package deals are also a big point of savings. As a Safeco customer, you also gain access to values that help you save by lowering the costs of protecting your home from floods. Safeco also gives up to a 15% discount if you choose one of its packages that combines your homeowners and auto insurance. Maybe the most interesting deal is the single loss deductible when combining home insurance and auto insurance.
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.
|3.5||A||795/1000||Fewer complaints than average|
|3.75||A++||831/1000||Fewer complaints than average|
|2.75||A++||N/A||More complaints than average|
|4||A+||814/1000||Fewer complaints than average|
All information accurate as of 09/16/2020
Safeco vs. State Farm
When comparing Safeco with State Farm’s homeowners insurance, you should have noticed that State Farm has a better J.D. Power Score than Safeco overall. But both companies have fewer customer complaints than the industry’s average. 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 Safeco offers a variety of deals that include home security discounts, newer homeowners discounts and bundling discounts. On the other hand, State Farm has a limited amount of discounts for its customers. Another point is that State Farm made it to our list of best homeowners insurance companies, while Safeco did not.
Safeco vs. Geico
Concerning customer satisfaction, Safeco homeowners insurance has below-average complaints while Geico has a slightly higher number than the average. It’s important to notice that complaints about neither one of the companies are home insurance-related. Customer experience, as well as coverage and discounts, may vary per location for both companies. 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++ on AM Best, while Safeco only has a grade of A. Safeco has more discounts available for its customers than Geico and not all of them could be used in every state. But both companies offer homeowners coverage and policies nationwide.
The Bottom Line
Safeco has been in the insurance market for a long time, but only 50% of the population knows of the company. Its low popularity may be because Safeco has a below-average customer satisfaction rating as a company, although its homeowners satisfaction complaints are below-average on NAIC’s Index. What Safeco — and every other insurance company — advertises its website will not indicate your personal experience or offerings it has across the United States. Safeco’s coverage, selection of packaged deals, various discounts and policies against identity theft are 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, identity theft and even umbrella coverage.
The amount of home insurance you need depends on many factors. To estimate your homeowners insurance, you should 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, if you live on a coast that’s often affected by hurricanes or in an area prone to flooding, you need additional coverage for these hazards.
Safeco homeowners insurance policies are currently available across the 50 states.
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.
The underwriting companies are: America First Insurance Company, America First Lloyd’s Insurance Company, American Economy Insurance Company, American Fire and Casualty Company, American States Insurance Company, American States Insurance Company of Texas, American States Preferred Insurance Company, Colorado Casualty Insurance Company, Consolidated Insurance Company, Employers Insurance Company of Wausau, Excelsior Insurance Company, First National Insurance Company of America, General Insurance Company of America, Hawkeye-Security Insurance Company, Indiana Insurance Company, Insurance Company of Illinois, Liberty County Mutual Insurance Company, LM Insurance Corporation, Liberty Mutual Mid-Atlantic Insurance Corporation, Liberty Northwest Insurance Company, Mid-American Fire & Casualty Company, The Midwestern Indemnity Company, Montgomery Mutual Insurance Company, The Netherlands Insurance Company, North Pacific Insurance Company, The Ohio Casualty Insurance Company, Ohio Security Insurance Company, Oregon Automobile Insurance Company, Peerless Indemnity Insurance Company, Peerless Insurance Company, Safeco Insurance Company of America, Safeco Insurance Company of Illinois, Safeco Insurance Company of Indiana, Safeco Insurance Company of Oregon, Safeco Lloyds Insurance Company, Safeco National Insurance Company, Safeco Surplus Lines Insurance Company and West American Insurance Company.
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. Besides, it provides liability coverage if someone is injured in your home. They also offer add-on coverage for equipment breakdown, identity theft and valuable articles such as fine art, jewelry, antiques, and collectibles.