We. Are. Farmers. Bum bah dum bah dum dum dah. Now it’s stuck in your head, too.
On top of having the catchiest jingle, Farmers Insurance is known for offering some of the highest quality coverages in the industry — particularly for homeowners. But what does that coverage look like, how much does it cost, and what is the overall value?
I’ve spent several days digging deep into Farmer’s offerings, reviewing data, and checking out customer reviews to bring you a complete picture of what they bring to the table, and what the tab will be at the end.
First let’s have a look at what Farmers homeowners insurance will cover, and how that coverage is broken down.
Farmers Insurance has an A rating from AM best, meaning they are squarely on the “solid” end of the spectrum when it comes to their ability to pay out the claims made by their customers. That’s certainly reassuring, but what exactly will they cover when it comes to your home? The list is pretty familiar.
A standard Farmers homeowners insurance policy covers:
Pro Tip: What Farmers — and typically what any standard policy — won’t cover are certain natural disasters like floods or earthquakes. For those, you’ll need separate, add-on policies.1
This is all relatively standard for a major insurance provider,2 but where Farmers stands out is the way they structure this coverage. Let’s take a look at that now.
There’s more on this in my review of Farmers homeowners insurance, but briefly, they offer three different tiers of coverage for three different types of homeowners. There are a handful of other insurance providers who do this too — read my Allstate review for another take. This is helpful for customers who want to customize their coverage, and here’s how Farmers does it:
So now that you know what they cover and how those packages are organized, let’s get down to brass tacks. What’s all this going to cost?
Before we get into things, be aware that it’s difficult to offer a general sense of how much an “average” homeowners insurance policy costs, regardless of provider. Your premium depends on a number of factors, including where you live, the value of your home, and your personal financial history.
That said, generally speaking, Farmers has some of the highest premiums around. And that was certainly my experience when I reached out for a quote.
FYI: Your homeowners insurance premium is significantly influenced by where you live. The state with the highest average is Maryland at $1,212 per year, and the lowest is Ohio, at $895 annually.3
I used an average, $300,000 property in the Atlanta, Georgia, area for my baseline, and I picked the Enhanced package because I wanted to be as middle-of-the-road as possible. The quote came back for $3,693.02 a year, or $306.92 per month.
That’s quite steep when you consider my Allstate home insurance quote was only $91 per month. Was Farmer’s coverage really worth three times as much as their competitor’s? To find out, let’s look at what that $307 per month was going to buy me:
|Protection||Value of Home|
|All Peril||1 Percent of Dwelling Coverage|
|Wind and Hail||5 Percent of Dwelling Coverage|
|Dwelling||100 Percent of Dwelling Coverage|
|Extended Replacement Cost||10 Percent of Dwelling Coverage|
|Separate Structures||10 Percent of Dwelling Coverage|
|Personal Property||55 Percent of Dwelling Coverage|
|Home Contents Coverage||Yes|
|Loss of Use||20 Percent of Dwelling Coverage or 12 Months|
|Building Ordinance or Law Coverage||10 Percent of Dwelling Coverage|
|Roof Payments||Replacement Cost Value|
|Marring to Metal Roof Mateteral||No|
|Type of Liability||Limits/Deductibles|
|Medical Payments to Others||$1,000|
To be fair, this is really good coverage. But if the sticker shock is still a bit too much to handle, Farmers allows you to tweak each particular category. That said, even when I purposefully tried to limit the coverage to draw down the premium, the needle didn’t move all that much.
Pro Tip: Keep in mind that Farmers also offers standard plans with much more affordable premiums. If you need insurance on a budget, that’s a good place to start. If it’s still a little too steep, though, you might check out our review of State Farm. They offer reasonable protections for folks looking to save.
Let’s get a little more context, though. How do the rates at Farmers compare to some of their biggest competitors?
After scouring the internet, it appears Farmers is consistently one of the most expensive providers of homeowners insurance in the industry. Here are the prices I found:
|Provider||Estimated Monthly Rate|
Of course, your experience might differ; these are estimates and averages we’re working with here. But when you’re shopping around for your perfect policy, expect Farmers to be one of — if not the — most expensive option.
To be fair, the company does offer some pretty significant savings for certain customers. Let’s take a look at some of those.
Although they’re likely going to be your most expensive option, if you fit into one of these categories, Farmers might end up being a more attractive choice for you.
Security enhancements: If you’ve installed a home security system in your home, you’re likely entitled to a discount on your premium.
No claims: If you don’t make a claim for three consecutive years, you’re entitled to a discount, even if you’re a new customer.
Claim forgiveness: If you go five consecutive years without making a claim, your rates won’t go up once you do make a claim.
Career-based savings: If you work in public safety, education, or the military, Farmers wants to thank you for your service by offering you a discount.
Pro Tip: If you’re a member of the U.S. armed forces, you should also check out my USAA homeowners insurance review. Their comprehensive policies are only available to military members and their families.
Declining deductibles: No matter what, you’ll earn $50 toward your deductible every year your policy remains active. The longer you’re a customer, the more this benefits you.
And there’s one other major way to save with Farmers. Since they’re such a large company, they offer a wide assortment of other insurance offerings. And you know what that means? Bundling. If you’ve been around the block, you know this is really the best way to save a lot of money on your total insurance bill. So what exactly can you bundle with Farmers?
If you’re looking for overall savings, you’ve got plenty of options. They offer quite a few different policy types, and the more you have with this provider, the more money will stay in your wallet. Among their offerings include:
I could go on. Basically, if you can reasonably put the word “insurance” behind it, it’s a good bet Farmers covers it.
So that’s a lot to take in, but what’s the takeaway? Should you consider them as your home insurance provider?
Right off the bat, I’m going to have to ding Farmers for their high costs and the fact that they’re not available everywhere. That said, they do offer comprehensive coverage that won’t leave you out in the storm should disaster strike.
If yours is only a consideration of dollars and cents, they might not be the best choice. However, if you’re thinking long term and want the best possible coverage for your dollars and cents, you might want to give Farmers a second look.
If you’re not convinced they are the right provider for you, head over to our list of the top homeowners insurance providers of 2022. You’re certainly going to find something for every situation and every budget there.
The provider offers a huge array of insurance types, including homeowners, auto, motorcycle, condo, rental, landlord, and life insurance.
They are consistently one of the most expensive homeowners insurance providers in the industry; however, their coverage is one of the most comprehensive.
Yes, they can insure for almost any peril and nearly every possession.
You can file a claim by speaking directly to your agent, visiting the Farmers website, using their mobile app, or calling 1-800-435-7764.
Yes, Farmers offers many discounts, including for teachers and public servants, as well as for customers who’ve installed security systems in their homes.
Insurance Information Institute. (2021, Nov 30). Spotlight on: Flood insurance.
Insurance Information Institute. (2022). What is homeowners insurance?.
Insider. (2021, Feb 8). How much the average homeowner pays for insurance in the US, by state and home value.