Best Home Insurance Companies

Farmers home insurance review and ratings 2023

Farmers Insurance is the No. 9 home insurance company in Insure.com’s 2023 Best Insurance Companies ranking with 2.4 stars out of 5, and is highly rated for web and mobile service.

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Our take

Farmers Insurance had solid scores for home and auto bundling as well as for claims handling in Insure.com’s 2023 Best Insurance Companies survey of insurance consumers. It ranks at No. 9 overall in our list of the top insurers.

Farmers – which offers home, auto and life insurance products – tends to have higher premiums than most of its competitors, according to the most recent Insure.com data, which may have hurt its star rating. Insure.com’s ranking rewards lower prices.  However, it was rated highly in several areas; 82% of its customers in the survey said they’d recommend the company. 

Farmers received an A rating from AM Best for its credit rating, which means it’s financially stable, and a J.D. Power score of 792 (out of 1,000) for overall satisfaction.

farmers
Farmers Ratings
Overall Rating: 2.4
Average Premium: 3.3
NAIC: 0.33
Customer Satisfaction: 3.8
AM Best Rating: A

Pros and Cons

Pros:
  • High score for claims handling
  • Good home and auto bundling
Cons:
  • Lower customer satisfaction rate than other surveyed companies
  • Higher premiums

Below is Insure.com’s review of the company. It’s based on third-party metrics, including two J.D. Power studies (Home Insurance Study and Property Claims Satisfaction Study) and an in-depth survey of insurance customers. Find the full methodology here, including an explanation of our survey scores.

How much Farmers costs

Farmers rates are on the high end compared to many other big companies. Both Allstate and Progressive have lower average annual rates than Farmers; about $1,000 less in the case of Allstate, which had the lowest prices of any company in the ranking.

Company Average annual rate
Farmers $2,973
Allstate $1,895
Progressive $2,321

How Farmers scores on customer satisfaction

Farmers didn’t perform as well as its competitors on this metric. State Farm topped the list for high customer satisfaction rates. In most cases, companies had percentages between 80% and 90% in this category.

Company Percent of customers that are satisfied J.D. Power overall satisfaction score (out of 1,000)
Farmers 75% 792
State Farm 93% 829
Allstate 87% 815

How Farmers scores on policy offerings

For policy offerings, 76% of Farmers’ respondents reported satisfaction with the company’s policy selection. In this category, many competitors did better, including Allstate and Liberty Mutual, which wasn’t ranked but was surveyed. Travelers led this category, with 91% of its customers giving it a high mark.

Company Percent of customers satisfied with the company’s policy offerings
Farmers 76%
Allstate 87%
Liberty Mutual 85%

How Farmers scores on ease of service

Although it scored higher than Nationwide for ease of service – a metric that rates how easy it is for customers to access policy documents and make changes – Farmers scored lower than many other home insurance providers in this category. That includes Progressive and Allstate. Travelers won this category at 91%.

Company Percent of customers satisfied with the company’s ease of service
Farmers 78%
Progressive 90%
Allstate 84%

Would current customers recommend Farmers to others?

Of the Farmers customers surveyed, 82% said they’d recommend the company. Respondents rated State Farm as the home insurer most likely to be recommended to others, while Travelers and American Family also received high scores. Most companies had scores in the 80th and 90th percentiles, showing overall satisfaction levels.

Company Percent of customers who would recommend the company to others
Farmers 82%
State Farm 97%
American Family 94%

How trustworthy is Farmers?

Farmers finished in the lower half in this survey category. At the top of the category, among ranked companies, were State Farm, Allstate and Travelers.

Company Percent of customers who say they trust the company
Farmers 69%
State Farm 83%
American Family 73%

Do Farmers customers plan to renew?

Farmers, with a score of 87%, outperformed some companies in this category, but State Farm and Allstate had higher scores. Travelers led this category with 97% of its customers saying they’ll renew.

Company Percent of customers who plan to renew with the company
Farmers 87%
State Farm 96%
Allstate 93%

How Farmers scores on claims handling

For claims handling, Farmers scored at the top end of the scale with a score of 72%. Liberty Mutual led among the surveyed companies but is not ranked. Even though Liberty Mutual did better on our survey, its score on the J.D. Power 2022 Property Claims Satisfaction Study is lower than that of Farmers.

Company Survey score for claims handling J.D. Power claims satisfaction score (out of 1,000)
Farmers 72% 884
Liberty Mutual 98% 876
Allstate 84% 870

How Farmers scores for bundling home and auto policies

Farmers earned a high score for bundling of home and auto policies, coming in higher than competitors such as Allstate and Nationwide. Travelers had a stronger showing, at 75%, than Farmers did in this category, but Farmers offers a higher discount percentage

Insurance company Survey score for auto and home bundle Average bundling discount
Farmers 69% 15%
Travelers 75% 12%
Allstate 61% 16%

How Farmers scores for discounts

Farmers scored in the lower half of the listings, at 50%, for discounts. Although it had more positive ratings than State Farm did in this category, it did not come close to Liberty Mutual’s score of 81%. Liberty Mutual was not ranked.

Company Survey score for discounts
Farmers 50%
Liberty Mutual 81%
State Farm 46%

Farmers home insurance coverages

  • Renters
  • Homeowners
  • Condo
  • Mobile & manufactured homes
  • Vacation homes
  • Vacant homes
  • Landlord
  • Earthquake
  • Flood

Farmers home insurance discounts

  • Security system
  • Dead bolts
  • Multiple policy lines
  • Non-smokers
  • Specific careers

Other policies offered

  • Auto insurance
  • Life insurance, including term life, whole life and universal life
  • Business insurance
  • Pet insurance
  • Rideshare

States where Farmers offers coverage

Graph
Table
States where Farmers offers coverage
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington D.C.
West Virginia
Wisconsin
Wyoming
AL AK AZ AR CA CO CT DC DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY
Available
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Company background

farmers

Farmers launched from a one-room office in downtown Los Angeles in 1928, aiming to provide quality insurance at an affordable price. Farmers then expanded to acquire New World Life Company of Seattle, becoming the first major insurance provider with interest-free monthly payment plans.

Farmers Insurance provides about 19 million individual policies and recently introduced Spot, a digital dog, to help with property inspections and catastrophe claims. In 2021, Farmers acquired MetLife’s home and auto business. The company now serves more than 10 million households nationwide.

Farmers is the first U.S.-based insurance carrier to sign the Principles for Sustainable Insurance, a collaboration between the United Nations and global insurance companies to advance sustainable practices across the industry.

Resources & Methodology

Sources:

Daily News. “Farmers Insurance to deploy dog-like robot for claims, inspections.” Accessed December 2022. 

Farmers. “About us.” Accessed December 2022.

Farmers. “Home.” Accessed December 2022.

Farmers. “Homeowners Insurance Discounts.” Accessed December 2022.

J.D. Power. “2022 U.S. Property Claims Satisfaction Study.” Accessed December 2022

J.D. Power. “2022 U.S. Home Insurance Study.” Accessed December 2022

Methodology

Insure.com in the fall of 2022 surveyed more than 1,500 people with auto, home, life and health insurance (805 with home insurance). The survey was conducted by online market research company Slice MR. Respondents were asked to name their insurer and the editors then selected – based on the number of responses – the top companies for this year’s Best Home Insurance Companies ranking. Insure.com needed 20 or more of a company’s customers to respond to the survey for that insurer to be included in the ranking, although in some categories the editors did consider companies with 18 or 19 responses.

Respondents were first asked to grade their insurer in the following categories – customer satisfaction, claims satisfaction and policy offerings. The percentage of respondents who said they were satisfied or very satisfied with their insurer is presented in the results.

Survey score calculation. Respondents were then asked to rank their insurer’s top three attributes out of more than a dozen presented – including customer satisfaction and policy offerings. For a number one choice, five points were given; for a second choice, three points; and for a third choice, a single point. The total points for each choice – first, second and third – were then divided by the number of each company’s customers who responded to that survey question to create a percentage. Those percentages are presented in the results as scores. 

Respondents were then asked if they would recommend their insurer to someone else. The percentage who said yes is presented in the results.

They also were given the statement “I trust my insurance company” and asked if they strongly agreed, agreed, disagreed or strongly disagreed with the statement. The percentage of those who said they agreed or strongly agreed is presented in the results.

The editors compiled the survey results and then collected National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives, and AM Best data, which measures financial strength. 

They also collected insurance rate data from Quadrant Information Services.

With the help of Prof. David Marlett, Ph.D., managing director of the Brantley Risk and Insurance Center at Appalachian State University, the editors created a rating system to determine which insurance companies were best in each sector. For home insurers, we used the following weights to calculate the overall score for each company: 

  • AM Best: 25% of total score
  • NAIC: 15% of total score
  • Annual premium: 20% of total score
  • Survey: 40% of total score (10% customer satisfaction, 10% recommended and 10% renewal rate, 10% claims handling)

No company in the ranking received less than 1 star in any category and 5 stars was the most any insurer could receive.

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