Cost & Coverage
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Farmers offers an array of flexible homeowners insurance coverages at affordable rates, but they've earned below average marks in customer service.
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THE BOTTOM LINE
Farmers is the fifth largest home insurer in the U.S. and one of the more recognizable brands on the market. This home and auto insurance mainstay is renowned for their personalized and flexible homeowners insurance policy options, offering a few different coverage packages: a lower cost option with standard coverage, a slightly more expensive but comprehensive option, and a higher cost option with the entire suite of coverage endorsements and enhanced coverage limits.
FARMERS COMPANY SPOTLIGHT
3 out of 5
A trusted customer satisfaction and product quality research agency
A nonprofit organization focusing on marketplace trust and product quality
100-year-old U.S. credit rating agency focused on the insurance industry
Agent availability in all 50 states. Farmers claims to insure more than 10 million homes in the U.S. A big reason for that may be their extensive range and network of agents (over 48,000 across all 50 states). If you're in need of coverage for your home or a second home, chances are Farmers is an option in your area.
Multiple customizeable coverage tiers. With three unique coverage tiers containing various levels of protection and pricing options, Farmers has something for everyone. Its premier coverage package is around $400 more annually than its basic offering, but features an entire suite of coverage endorsements for high-value homes as well as guaranteed replacement cost for your home's structure.
Accessible discount options. While Farmers doesn't offer any particularly special or unique discounts, where it stands apart from competitors is how easy it is to capitalize on its various discount offerings. For example, homes up to 12 years old can qualify for Farmers new home discount.
Limited enhanced coverage options. While Farmers offers comprehensive enhancements to standard coverage components, like replacememt cost personal property coverage and extended and guaranteed replacement cost for your home's structure, it lacks some of the more popular additional coverage endorsements — like equipment breakdown coverage, home computers coverage, service line coverage, and others.
Lower financial ratings than competitors. By no means does Farmers have bad or even less-than-good financial ratings, but with an A rating from A.M. Best and S&P, they lag a bit behind some of the more established players in the homeowners insurance industry. For a company the size of Farmers, you wonder if maybe they're taking on more risk than they can handle.
The price of homeowners insurance can vary considerably from company to company based on a number of factors. A standard carrier that specializes in mid-sized homes, like Farmers and Allstate, will ostensibly have lower rates than a company that caters to high net-worth properties with comprehensive protections and perks baked into its base level policy.
On average, Farmers rates are considerably lower than the average quoted policy with Policygenius. Farmers policyholders have a $1,480 average annual premium, according to Policygenius data.
Your rates are particularly impacted by the amount of coverage in your policy. Below is the average cost of homeowners insurance at different levels of coverage with Farmers.
|Farmers coverage amount||Farmers average annual premium|
Average annual homeowners insurance premiums for each coverage level were calculated using Policygenius quoting data.
A great way to keep your homeowners insurance costs down is to take advantage of discount opportunities.
Some common discounts include protective devices discounts, claims free discounts, and new home discounts. Farmers offers most of the standard discounts as well as a multi-policy discount if you get more than one property insurance policy with Farmers.
Homeowners insurance protects your most important financial assets, so you'll want to be sure you're insuring your home, your personal possessions, and other assets with a company that will be able to pay out your claim in the event of a disaster. Farmers has been around for almost 100 years and has well-established financial strength with the top insurance rating agencies in the world. With Farmers, you can insure your home with confidence.
Standard & Poor's measures companies' creditworthiness and is used primarily by financial investors and other market stakeholders. S&P is also valuable in measuring the long-term financial stability of insurance companies. A AAA rating is the highest issuer credit rating assigned by S&P. While Farmers' A rating is quite a bit lower than its competitors, it shouldn't leave policyholders or investors with too much of a reason to worry.
Moody's is very similar to Standard & Poors, except rather than measuring a companies ability to remain financial stable and creditworthy, Moody's measures what the expected losses would be if a company were to go into default. It's particularly valuable in analyzing the value of stocks and bonds with certain companies. A AAA rating is the highest possible score you can receive from Moody's, so Farmers Aa2 rating earns them a "very high" investment grade designation.
A.M. Best is the most reliable credit-rating tool insureds can use to gauge the financial health of a particular company. Unlike S&P and Moody's, A.M. Best is focused exclusively on the insurance marketplace. A good score with A.M. Best means a company is more likely to fulfill their financial obligation to you when it comes time to file a claim. With an A score with A.M. Best, Farmers has one of the higher credit ratings a company can receive with A.M. Best.
It's important to know what experts think about homeowners insurance companies - but it's also good to know what actual customers and consumer sentiment sites are saying, too.
Farmers has decent ratings with most of the big rating companies and review aggregators, scoring at least average ratings with every company. Farmers actually saw a bump in their J.D. Power score last year, going from a 2 out of 5 to a 3 out of 5 rating, indicating that their customer satisfaction is trending in the right direction.
J.D. Power provides studies that rate insurance companies across policy offerings, price, clarity of billing and policy information, interaction, and claims. An overall satisfaction score, "based on how customers view every experience of their experience with homeowners insurance providers," is reflected here and used for our ranking.
The Better Business Bureau ranks companies across a large swath of criteria. While consumers can submit ratings to the BBB, these scores are not taken into account in their rating, although tangential metrics that take into account customer experience are.
Consumer Affairs is a platform that lets consumers directly rate customers, while Consumers Advocate rates companies based on stability, reputation, and policy coverage.
The National Association of Insurance Commissioners tracks the number of complaints submitted to state insurance departments with their national complain index. A score of 1 is the baseline average, and a score of 0 means there weren't enough complaints to count.
Farmers offers three homeowners insurance coverage packages that provide all of the six basic protections and varying levels of coverage enhancements and benefits for each one.
There is one standard policy for the price-conscious homeowner who isn't in need of robust protection, a middle tier with replacement cost contents coverage and added endorsements, and a higher tier that includes every endorsement offered by Farmers, in addition to guaranteed replacement cost dwelling coverage.
Here are some of the highlights of each of the three coverage tiers with Farmers:
Farmers’ most affordable homeowners insurance package. Includes the six standard coverages and the ability to customize each coverage to your liking or add endorsements to your policy for an additional premium.
Farmers’ middle coverage tier which, in the case of our sample property, costs around $130 more annually than standard coverage. Includes extended coverage limits and replacement cost coverage for your roof and personal property.
Farmers’ most comprehensive coverage tier and around $400 more than their standard policy offering. It features increased coverage limits for specific items like jewelry and firearms, a number of coverage endorsements, and guaranteed replacement cost coverage for your home’s structure.
Note: The information above represents potential policy options and may not be available for every applicant. Speak to a licensed expert for a personalized look at your coverage options.
Farmers is available in every state, has decent claims ratings, and has numerous digital tools and an easy-to-use website for managing your policy.
Farmers homeowners insurance is available in 50 states and the District of Columbia.
Farmers features online policy management, bill pay, and a mobile app.
Farmers Insurance application process is remarkably fast and can be done mostly online. You simply plug in your ZIP code, provide basic information about yourself and your home, and Farmers instantly provides you with a quote for each of their three coverage tiers. Once you select a tier, you have the option to adjust your deductible amount and certain components of coverage. The entire process should take around 5 minutes.
Farmers allows you to file and track claims online. From finding a vendor to repair your property to replacing personal items to getting emergency lodging, Farmers ensures their customers are taken care of. Farmers also has a helpful claims section on the company website that walks you through different claim scenarios—water damage claims, catastrophe claims, and just general property claims—and gives in-depth instructions on the actions you need to take to ensure a fast and effective process.
Farmers has average claims satisfaction ratings (3 out of 5) with J.D. Power.
Policygenius offers insurance policies from many of the nation's top insurers, who pay us a commission for our services. However, all editorial choices are made independently.
Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.
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Yes, we have to include some legalese down here. Read it larger on our legal page. Policygenius Inc. (“Policygenius”) is a licensed independent insurance broker. Policygenius does not underwrite any insurance policy described on this website. The information provided on this site has been developed by Policygenius for general informational and educational purposes. We do our best efforts to ensure that this information is up-to-date and accurate. Any insurance policy premium quotes or ranges displayed are non-binding. The final insurance policy premium for any policy is determined by the underwriting insurance company following application. Savings are estimated by comparing the highest and lowest price for a shopper in a given health class. For example: for a 30-year old non-smoker male in South Carolina with excellent health and a preferred plus health class, comparing quotes for a $500,000, 20-year term life policy, the price difference between the lowest and highest quotes is 60%. For that same shopper in New York, the price difference is 40%. Rates are subject to change and are valid as of 2/17/17.
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