Are Farmers Homeowners Insurance Legit? A Comprehensive Review (2023)

Homeowners insurance is one of the most important financial decisions you can make to protect your home and your belongings.

It protects you against losses from fire, theft, vandalism, natural disasters, and liability claims.

But with so many insurance companies and policies, how do you know which one is right for you?

One of the options you might have heard of is Farmers Homeowners Insurance.

Farmers Insurance is one of the largest and oldest insurance companies in the United States, offering a variety of insurance products, including homeowners insurance.

But is Farmers Homeowners Insurance legit?

How does it compare to other insurers in terms of coverage, cost, customer service, and financial stability?

In this comprehensive review, we will answer these questions and more. We will cover the following key points:

  • Company Overview:
  • Coverage Options:
  • Customer Reviews and Ratings:
  • Financial Stability:
  • Cost and Discounts:
  • Claims Process:
  • Alternatives and Comparisons:
  • Conclusion:
  • Additional Resources:
Farmers Insurance headquarters or offices
Farmers Insurance headquarters or offices

Company Overview

Founded in 1928, Farmers Insurance serves 10+ million households across the U.S., offering diverse insurance, including auto, life, and homeowners coverage.

Known for top ratings and awards, Farmers earned accolades like J.D. Power’s Highest Customer Satisfaction in 2020.

Farmers Homeowners Insurance, a key product, caters to various homeowner types with optional coverages like flood and identity theft protection.

Coverage Options

Farmers Homeowners Insurance offers three types of homeowners insurance policies: HO-3, HO-5, and condo insurance.

Each policy has different levels of coverage and exclusions, depending on the type of home and the risks involved.

Here is a brief overview of each policy and what it covers:

HO-3:

This standard homeowners insurance covers your dwelling and structures, barring specified exclusions.

It protects personal property against named perils like fire and theft.

The policy also includes liability for injuries or property damage caused by you or your family members, along with coverage for additional living expenses during a temporary relocation due to a covered loss.

HO-5:

This is a more comprehensive and expensive type of homeowners insurance policy.

It covers your dwelling, other structures, and personal property for all perils, except those that are specifically excluded in the policy.

This means that you have more protection for your belongings, especially for high-value items like jewelry, art, antiques, etc.

However, this policy also has higher premiums and deductibles than the HO-3 policy.

Condo Insurance:

This is a type of homeowners insurance policy that is designed for condo owners.

It covers your personal property, liability, and additional living expenses, as well as any improvements or additions you make to your unit.

However, it does not cover the structure of your condo, as that is usually covered by the condo association’s master policy.

You should check with your condo association to find out what their policy covers and what you are responsible for.

Farmers Homeowners Insurance also offers optional coverages that you can add to your policy for extra protection.

Some of these optional coverages are:

Flood Insurance:

This covers your home and personal property from flood damage, which is not covered by standard homeowners insurance policies.

Flood insurance is required by law if you live in a high-risk flood zone, but it is also recommended for anyone who lives in an area that is prone to flooding.

You can purchase flood insurance through the National Flood Insurance Program (NFIP) or a private insurer like Farmers.

Earthquake Insurance:

This covers your home and personal property from earthquake damage, which is not covered by standard homeowners insurance policies.

Earthquake insurance is especially important if you live in an area that is susceptible to seismic activity, such as California, Alaska, Hawaii, etc.

You can purchase earthquake insurance through Farmers or the California Earthquake Authority (CEA) if you live in California.

Identity Theft Protection:

This covers the expenses and losses you incur as a result of identity theft, such as legal fees, credit monitoring, lost wages, etc.

Identity theft is a growing threat in the digital age, and it can affect anyone who uses the internet, credit cards, or social media.

You can purchase identity theft protection through Farmers or a third-party provider like Identity Guard or LifeLock.

Equipment Breakdown Coverage:

This coverage addresses repair or replacement costs for essential home appliances and systems in case of mechanical or electrical failure.

It proves valuable for costly and crucial items like refrigerators and furnaces, ensuring comfort and convenience.

Equipment breakdown coverage can be obtained from Farmers or third-party providers like American Home Shield or HomeServe.

Farmers Homeowners Insurance provides diverse coverage options catering to various homeowner needs.

To evaluate its competitiveness, a comparison table below contrasts coverage options with major providers State Farm, Allstate, and GEICO:

Table
Coverage Option Farmers State Farm Allstate GEICO
Dwelling ✔️ ✔️ ✔️ ✔️
Other Structures ✔️ ✔️ ✔️ ✔️
Personal Property ✔️ ✔️ ✔️ ✔️
Liability ✔️ ✔️ ✔️ ✔️
Additional Living Expenses ✔️ ✔️ ✔️ ✔️
Flood Insurance ✔️ ✔️ ✔️ ✔️
Earthquake Insurance ✔️ ✔️ ✔️
Identity Theft Protection ✔️ ✔️
Equipment Breakdown Coverage ✔️

 

Farmers stand out with a broader array of coverage options compared to some rivals, notably in optional categories like earthquake insurance, identity theft protection, and equipment breakdown coverage.

However, the necessity and availability of these coverages vary based on location and property.

It is essential to assess your needs and budget, comparing coverage options across insurers to tailor choices to your specific situation.

Customer Reviews and Ratings

Customer reviews and ratings can give you an insight into the experiences and opinions of real customers who have used Farmers Homeowners Insurance.

However, you should also be aware that customer reviews and ratings can be biased, incomplete, or outdated, and they may not reflect the average or typical customer experience.

Therefore, you should also consider other factors, such as coverage, cost, and financial stability, when evaluating an insurance company.

Farmers Homeowners Insurance elicits mixed reviews online. Some customers praise its coverage, discounts, and efficient claims process.

A satisfied ConsumerAffairs1 reviewer notes prompt and fair claims settlements, along with premium-reducing discounts.

However, some customers have also complained about Farmers’ high rates, policy cancellations, poor communication, and claim denials.

 For example, another customer wrote on ConsumerAffairs: “Farmers Insurance is the worst insurance company I have ever dealt with. They canceled my policy without notice, refused to reinstate it, and gave me the runaround for weeks. They also denied my claim for water damage, saying it was not covered by my policy.”

Farmers Homeowners Insurance has also received various ratings from different sources. According to the web search results, Farmers has:

  • A 3.9 out of 5 rating based on 430 customer reviews on ConsumerAffairs
  • A 5 out of 5 rating based on NerdWallet’s editorial evaluation
  • A 3.2 out of 5 rating based on Forbes Advisor’s editorial evaluation
  • A 4 out of 5 rating based on J.D. Power’s 2020 U.S. Home Insurance Study
  • A 0.23 complaint ratio based on the National Association of Insurance Commissioners’ 2020 data

These ratings indicate that Farmers Homeowners Insurance has a favorable reputation among customers and industry experts, but it also has some room for improvement.

Farmers seem to be addressing some of the issues raised by customers by offering more coverage options, discounts, and digital tools.

However, Farmers may also need to work on its pricing, communication, and claim handling to enhance customer satisfaction and loyalty.

Farmers Insurance representatives
Farmers Insurance representatives

Financial Stability

Financial stability is pivotal in selecting an insurance company, indicating its capacity to fulfill claims and meet obligations.

Farmers Insurance boasts an A (Excellent) rating from A.M. Best since 2019, denoting strong financial strength.

This rating aligns with major competitors like State Farm, Allstate, and GEICO. However, it falls below Travelers and Liberty Mutual, which hold higher ratings.

While Farmers demonstrate reliability, challenges like exposure to catastrophes and market competition persist.

Ongoing efforts to enhance financial performance, diversify revenue, and manage risks are crucial for sustained stability in the dynamic insurance landscape.

Cost and Discounts

Cost is a crucial consideration in choosing an insurance company, impacting your budget and policy value.

Homeowners insurance expenses hinge on factors like location, home value, deductible, coverage, and personal traits.

To determine the precise cost of Farmers Homeowners Insurance, obtaining a personalized quote from Farmers or an independent agent is recommended.

As a reference, NerdWallet cites an average annual premium of $2,006 for Farmers Homeowners Insurance, surpassing the national average of $1,585.

Yet, individual circumstances may vary. To secure the best deal, it’s advised to compare quotes from different insurers.

Farmers Homeowners Insurance extends various discounts for eligible customers, enhancing affordability and value.

As per search results, some Farmer’s discounts include: [Details to be filled based on available information]

Multiline discount:

You can save money by bundling your homeowner’s insurance with other policies from Farmers, such as auto, life, umbrella, or specialty insurance.

Nonsmoker discount:

You can get a lower rate if no one in your household has smoked in the past two years.

Claim-free discount:

You can qualify for a discount if you have not filed a claim for several years.

Declining deductible:

You can reduce your deductible by $50 for every year you renew your policy without a claim, up to a maximum of $500.

Claim forgiveness:

You can avoid an increase in your premium after your first claim if you have been claim-free for five years.

Home safety and security discount:

You can get a discount if you install devices that protect your home from fire, theft, or vandalism, such as smoke detectors, fire alarms, deadbolts, security systems, etc.

Home renovation discount:

You can get a discount if you update your home’s plumbing, heating, cooling, or electrical systems.

New home discount:

You can get a discount if you buy a newly built home or a home that is less than 12 years old.

Affinity discount:

You can get a discount if you belong to certain professions or groups, such as teachers, firefighters, police officers, doctors, nurses, engineers, military veterans, etc.

These discounts and savings can help you reduce your costs and maximize your coverage with Farmers Homeowners Insurance.

However, you should also compare the discounts offered by other insurers, as they may vary by state, policy, and eligibility.

You should also look for other ways to save money on your homeowner’s insurance, such as increasing your deductible, improving your credit score, or shopping around for the best price.

 Images of different types of homes covered by Farmers insurance Infographics explaining specific coverage options like flood
Images of different types of homes covered by Farmer’s insurance Infographics explaining specific coverage options like flood

Claims Process

The claims process is the most critical aspect of an insurance company, as it determines how quickly and easily you can get compensated for your losses and damages.

You want an insurance company that has a simple, fast, and fair claims process, with responsive and helpful representatives, convenient and flexible options, and satisfactory and timely payments.

According to the web search results, Farmers Homeowners Insurance has a straightforward and efficient claims process, with several features and benefits that make it easier and more convenient for customers.

Here are the steps involved in filing and settling a claim with Farmers Homeowners Insurance:

  • File your claim:

Initiate your claim conveniently by phone or online, supplying essential details about yourself and the incident causing damage.

Alternatively, file through your agent if preferred. Take proactive measures to prevent additional harm to your home, such as covering a broken window or a roof hole.

Document any related expenses for your records.

  • Review your claim:

A claims representative will contact you to review your claim, explain your coverage and the next steps, and answer any questions you may have.

The representative may also give you tips or instructions on how to protect your home and belongings, such as taking photos or videos of the damage, making an inventory of your personal property, or separating damaged items from undamaged ones.

  • Choose your repair option:

For home repairs or belongings replacement, options abound. Opt for Farmers’ network of pre-screened, licensed, and insured service providers, including contractors, roofers, plumbers, and electricians.

Alternatively, select your own contractor or service provider.

Depending on your policy, reimbursement can be based on the actual cash value or replacement cost of your items.

Expedite the process with Farmers’ digital tools like the iClaim app or the virtual inspection option, allowing you to submit photos or videos for a quicker estimate.

  • Track and manage your claim:

Access the Farmers’ online claim management portal to monitor your claim status and manage details.

Utilize features such as uploading receipts or documents, viewing payments, accessing claim letters, tracking claim status, and retrieving selected repair contractor information.

For updates or assistance, reach out to your claims representative or agent anytime.

  • Receive your payment:

Various payment options are available, including direct deposit to your bank account or debit card, checks, or electronic funds transfer.

If you utilize Farmers’ network of service providers, you can opt for direct payment to the contractor.

Depending on the damage type, extent, deductible, and coverage limits, you may receive multiple payments.

  • Close your claim: 

Once all the payments have been made and all the repairs have been completed, Farmers will close your claim.

You can also provide feedback on your claim experience and rate the service you received.

Alternatives and Comparisons

Farmer’s Homeowners Insurance is not the only option available for homeowners who are looking for insurance coverage for their homes and belongings. Many other insurance companies offer similar or different products and services, and it is important to compare them to find the best fit for your needs and preferences.

Some of the major competitors of Farmers in the homeowner’s insurance market are:

Travelers:

As one of the oldest and largest insurance companies in the U.S., Travelers provides a comprehensive suite of insurance products, including homeowners insurance.

Coverages range from standard options like dwelling and personal property to extras such as liability, additional living expenses, water backup, green home, and identity fraud protection.

Travelers offer discounts for policy bundling, protective device installation, claims-free history, and environmentally friendly home features.

The company boasts an A++ (Superior) rating from A.M. Best, reflecting strong financial strength, and a low 0.21 complaint ratio per the National Association of Insurance Commissioners.

Liberty Mutual:

Liberty Mutual, a prominent insurance company, provides a range of products, including homeowners insurance.

Coverages encompass standard elements like dwelling and personal property, along with options such as liability, additional living expenses, inflation protection, water damage, and personal property replacement costs.

Liberty Mutual extends discounts for policy bundling, claims-free records, new or renovated homes, and the use of smart home devices.

The company boasts an A (Excellent) rating from A.M. Best, indicating solid financial standing, and a 0.28 complaint ratio as per the National Association of Insurance Commissioners.

State Farm:

As the largest and widely favored insurance company in the United States, State Farm provides a range of insurance products, including homeowners insurance.

Coverages encompass both standard and optional options, spanning dwelling, personal property, liability, additional living expenses, water backup, identity restoration, and more.

State Farm extends discounts for bundling policies, installing protective devices, possessing a new or renovated home, and having an impact-resistant roof.

The company holds an A++ (Superior) rating from A.M. Best, highlighting its exceptional financial standing.

Best and a 0.18 complaint ratio from the National Association of Insurance Commissioners.

GEICO:

GEICO, renowned for auto insurance, extends homeowners coverage through partners like American Family, Homesite, and Liberty Mutual.

As an intermediary, GEICO facilitates quotes and policy management, while the partner company provides actual coverage and service.

Offerings include standard and optional coverages like dwelling, personal property, liability, and identity theft.

GEICO features discounts for policy bundling, protective devices, claims-free history, and new or renovated homes.

The company holds an A++ (Superior) rating from A.M. Best and a 0.15 complaint ratio according to the National Association of Insurance Commissioners.

These options, along with Travelers and Liberty Mutual, provide alternatives to Farmer’s Homeowners Insurance.

When choosing, consider factors like coverage, cost, customer service, and financial stability.

A comparative table highlighting essential aspects can aid in making an informed decision based on your specific needs and budget.

Table
Factor Farmers Travelers Liberty Mutual State Farm GEICO
Average annual premium $2,006 $1,269 $1,960 $1,475 $1,578
A.M. Best rating A A++ A A++ A++
NAIC complaint ratio 0.23 0.21 0.28 0.18 0.15
Standard coverages ✔️ ✔️ ✔️ ✔️ ✔️
Optional coverages ✔️ ✔️ ✔️ ✔️ ✔️
Discounts ✔️ ✔️ ✔️ ✔️ ✔️
Customer satisfaction 4/5 3/5 3/5 4/5 3/5

Sources: NerdWallet, Forbes Advisor, J.D. Power, NAIC, A.M. Best

Conclusion

While Farmer’s Homeowners Insurance is respected with various coverage options and strong financial stability, it may not be the most economical choice for everyone.

With higher rates than some competitors, potential limitations in coverages or discounts, and reported issues in communication and claims handling, it may not suit everyone’s preferences.

Before committing to Farmers, comparing it with other insurers is crucial.

Evaluate differences in cost, coverage, and service.

Obtain personalized quotes from various providers to secure the best coverage at an optimal price.

This approach allows you to tailor your choice to the insurer that aligns best with your needs and preferences, ensuring adequate protection for your home and belongings.

Additional Resources

If you want to learn more about Farmers Homeowners Insurance or get a quote, you can visit the Farmers Insurance website or call 1-888-327-6335.

You can also find a local agent near you by using the agent locator tool on the website.

If you want to read more online reviews and ratings for Farmers Homeowners Insurance, you can visit the following websites:

If you want to compare Farmers Homeowners Insurance with other insurance companies, you can use the following tools:

  • EverQuote
  • Policygenius
  • Insurify

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