Safeco is a popular insurance provider, owned by Liberty Mutual Group. The company offers a range of different insurance types including homeowners, auto, pet, umbrella, and renters insurance.
For those who don’t own their own home and want to ensure they are fully protected, Safeco’s renter’s insurance is a solid choice. And if you bundle multiple insurance policies, you can save money on your rental insurance. However, one thing to bear in mind with Safeco is that its customer satisfaction reviews aren’t the best in the industry.
Our Safeco renters insurance review will help you learn more about the company, its policies and coverage.
Safeco Renters Insurance Overview
Overall customer opinion of Safeco appears to be fairly average. According to YouGov, Safeco has a 19% positive opinion score, with just a 6% negative opinion and 26% with a neutral opinion. While Safeco has an A+ rating on Better Business Bureau, customer reviews put it on one star out of six.
- File claims online 24/7 Safeco states on its website that you will be able to file claims online at any point in the day.
- Up to 15% bundling discounts If you take out multiple policies such as auto, motorcycle, or boat insurance, you can receive up to a 15% discount.
- Save money by paying bills in full If you can pay for your insurance annually, you will get a further discount.
- Outdated agent contact information on the website The method for searching for your nearest agent is outdated and not the most user-friendly tool.
- Low customer service satisfaction Safeco has low customer ratings on BBB, J.D. Power and above-average complaints on NAIC.
- No online policy approval To apply and get approved for a policy you will need to do this over the phone as there’s no online tool for it yet.
Safeco’s renter’s insurance pricing will depend on several factors. When getting a quote, you will need to take the value of your personal property, liability coverage, living expenses, home type and location into consideration.
While there are some things you won’t be able to change, such as home type and location, you can control the amount you want to pay as a deductible or how much coverage you wish to purchase. Your credit score and income will also be important factors so it’s worth spending some time repairing any damages to your credit score to get a cheaper premium.
Safeco renters insurance provides coverage from damage and theft for all of your possessions, even while you’re traveling. You’ll also be covered if someone is injured while they’re at your rental property and you’re deemed liable. Furthermore, if you have to live off-site due to damage from an event like a fire or flood, you’ll receive a stipend for up to 24 months to offset the cost of temporary housing.
You can also choose to add several options to your coverage, including:
- Identity theft coverage: For just $1 per month, Safeco helps cover the cost of restoring your identity if it’s stolen.
- Valuable article coverage: If you have expensive belongings like jewelry, electronics, or antiques, you can sign up for valuable article coverage through Safeco. You agree to a dollar amount that the items are worth, and you don’t have to pay a deductible if you file a claim.
Personal property replacement cost protection: With this add-on, you’re covered for the value of a new item to replace your lost item. Regardless of the age of the original object, Safeco covers the cost of a new item that’s similar to the one you lost.
When looking specifically at renters insurance, Safeco falls low on the totem pole. According to J.D. Power’s most recent home insurance study of overall customer satisfaction with renters insurance providers, Safeco came in third-to-last place among the 14 companies across the U.S. included in the report. The study focused on interactions between customers and representatives, the policies offered, how much it cost, how billing worked, and the ins and outs of the claims process. Safeco’s renter’s insurance fell below average for these categories, scoring 820 out of 1,000 points — 24 points below the industry average.
Also, according to the NAIC, the company’s complaint index is 2.31, which is over twice as high as the number of expected complaints in the market.
Additionally, our research revealed that it can be tricky to find the right local agent to reach out to since some of the contact information on its website is outdated.
With Safeco, you can receive a discount for any safety equipment included in your rental. If your property comes with things like a sprinkler system, a burglar alarm, or a fire extinguisher, you could get money off your monthly bill. Also, you’ll get a deal when you bundle your Safeco renters insurance with other policies from the company, like for your car or motorcycle. Furthermore, if you pay your bill in full rather than through monthly installments, you’ll save money in the long term.
We evaluated Safeco’s renters insurance based on its customer rating and experience, financial stability, and coverage to determine the best companies. To compare 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 available 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.
- 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.
|Company||Reviews.com Score||AM Best Financial Strength Rating||J.D. Power 2019 Score||NAIC Customer Complaints|
|Safeco Renters Insurance||3.5||A||820/1000||More complaints than average|
|State Farm||3.75||A||850/1000||Fewer complaints than average|
|American Family||3.75||A||853/1000||More complaints than average|
|Allstate||4||A+||829/1000||Fewer complaints than average|
|Nationwide||3.75||A+||828/1000||More complaints than average|
|USAA||4||A++||895/1000||More complaints than average|
|Farmers||3.5||A||826/1000||More complaints than average|
*All information accurate as of 09/29/2020.
Safeco vs. State Farm
Safeco is a lesser-known insurance company when compared to State Farm but there are plenty of similarities. Both insurance companies have similar financial strength ratings, BBB ratings and ratings on J.D Power. However, State Farm is rated slightly higher than Safeco.
In terms of customer satisfaction, State Farm wins with fewer complaints on average than Safeco according to the NAIC Complaints Index. Both companies have plenty of discounts on offer to try and reduce your premiums and plenty of additional coverage options to suit different needs.
Safeco vs. Allstate
Allstate is another company that is arguably more well-known than Safeco. Safeco and Allstate have similar J.D. Power ratings, but Allstate wins by a small margin. Allstate also has a slightly better financial strength rating with A.M. Best. Like State Farm, Allstate also has fewer customer complaints on average, which put the company ahead of Safeco.
Allstate offers plenty of coverage options and the ability to customize your policy, which makes it stand out. However, one of Safeco’s great features is the 24-month stipend if you lose access to your home due to fires or flooding.
The Bottom Line
Safeco renters insurance offers some great coverage options which make it suitable for many renters across the country. Where Safeco falls behind is with its less-than-stellar- customer service reviews. However, the deals you get through bundling might make a renter’s insurance policy worth it.
Your personal property is protected in your home while you’re traveling, and sometimes if it’s stolen from your car. Additionally, there are agents available nationwide. Although you have to make a phone call to launch a policy, you can file claims and control your plan through the Safeco website or app, which makes it a convenient choice, as well.
Safeco Renters Insurance FAQs
As well as renters insurance, Safeco also offers homeowners insurance and bundling options for those who wish to combine both auto and home insurance.
Safeco renters insurance operates nationwide in 50 states, so you should be able to find an agent to work with easily enough.
Safeco does not underwrite all of its own policies. Instead, Safeco may rely on one of its partner underwriting companies, which are part of Liberty Mutual Group.
Safeco’s standard coverage will protect your personal belongings both at your home and when you travel. The standard policy also includes liability coverage and living expenses if your home is damaged during flooding or fires. You can add on additional coverage such as identity recovery, valuables protection and personal property replacement.