- Farmers Insurance Background and Structure: Established in 1928 and owned by Zurich Insurance Group, Farmers operates in 40 states through a large network of agents, offering a variety of homeowners coverage options.
- Unique Smart Plan Home System: Farmers’ three-tier system—Standard, Enhanced, and Premier—allows flexible coverage with built-in rewards like claim forgiveness and declining deductibles, tailored to different homeowner needs.
- Coverage Options and Add-Ons: Farmers provides standard coverage with optional add-ons such as Eco-Rebuild, emergency mortgage assistance, and water backup, with exclusions like flood and earthquake coverage.
- Pricing and Discounts: Farmers’ premiums are above average, costing around $2,236 to $2,506 annually for $300,000 dwelling coverage, but discounts and policy rewards can help lower the overall cost.
- Strengths and Weaknesses: Farmers offers structured coverage choices, policy rewards, and strong financial backing, but has middling claims satisfaction scores and higher-than-average complaints, making it suitable for claim-free homeowners valuing coverage flexibility.
Farmers Homeowners Insurance Overview
Farmers has been selling insurance since 1928, when it started as an auto insurer for farmers in Southern California. Today, it operates in 40 states through a network of more than 48,000 exclusive and independent agents. The company is not publicly traded. It is a group of three reciprocal exchanges managed by Farmers Group, Inc., which is a wholly owned subsidiary of Zurich Insurance Group, the Swiss-based global insurer.
What makes Farmers different from most homeowners’ insurers is the Smart Plan Home system. Instead of handing you a generic HO-3 policy and asking which endorsements you want, Farmers gives you three tiers to choose from: Standard, Enhanced, and Premier. Each tier comes with progressively more coverage and higher limits, and you can customize within each one. The tiers come with built-in policy rewards that you get for free: declining deductibles ($50 off per year), a claim-free discount (10% after three consecutive claim-free years), and claim forgiveness (your rate will not increase after a claim if you have been claim-free with Farmers for five years).
The downside is price. Farmers tend to cost more than the national average. For $300,000 in dwelling coverage, you are looking at roughly $2,236 to $2,506 per year, compared to a national average of about $2,110. The claims experience is also middling: J.D. Power gave Farmers a 676/1,000 in the 2025 Property Claims Satisfaction Study, just below the industry average of 682.
Pros and Cons
Pros
- Three-tier Smart Plan system: Standard, Enhanced, and Premier packages make it easy to pick a coverage level and customize from there. You are not starting from scratch on every option.
- Built-in policy rewards: Declining deductibles ($50/year), claim-free discount (10%), and claim forgiveness after 5 claim-free years come with every policy at no extra cost. These are real perks that most competitors charge for or do not offer at all.
- Eco-Rebuild: Up to $25,000 toward green materials when rebuilding after a covered loss. This is a unique add-on that very few other carriers offer.
- Emergency mortgage assistance: Covers up to $10,000 (roughly 3 months of mortgage payments) if your home is uninhabitable after a covered loss. Another uncommon feature.
- Large agent network: 48,000+ agents means you can usually find a local Farmers agent, and the company is not going digital-only anytime soon.
- Expanding in California: In December 2024, Farmers raised its cap on new homeowners policies in California from 7,000 to 9,500 per month, moving in the opposite direction of carriers like State Farm that pulled back.
Cons
- Above-average pricing: Farmers costs more than the national average for homeowners’ insurance. Depending on the source, the average premium is $2,236 to $2,506/year for $300K in dwelling coverage, versus about $2,110 nationally.
- Not available in 10 states or D.C.: Missing Alaska, Delaware, Florida, Hawaii, Maine, New Hampshire, Rhode Island, South Carolina, Vermont, and West Virginia. That is a wider gap than most major carriers.
- Below-average J.D. Power satisfaction: Farmers scored 676/1,000 in the 2025 Property Claims Satisfaction Study (industry average was 682) and ranked below average in overall satisfaction.
- NAIC complaint index of 1.70: Above the industry baseline of 1.0. Common complaints focus on claim delays and settlement disputes rather than outright denials.
- Not a digital leader: The app and website are functional, but Farmers lags behind Lemonade, USAA, and even Allstate in digital tools and user experience.
- Zurich ownership: Farmers is managed by a subsidiary of Zurich Insurance Group (Switzerland), so profits flow to a foreign parent. Not necessarily a negative for policyholders, but worth knowing.
Coverage Options
The Smart Plan Home System
Farmers structures homeowners’ insurance around three tiers. Each includes the standard six coverage types (dwelling, other structures, personal property, loss of use, personal liability, and medical payments), but with different levels of coverage:
Feature | Standard | Enhanced | Premier |
Target Homeowner | Budget-conscious, starter homes | Mid-range homes, higher limits | High-value homes, maximum protection |
Dwelling Coverage | Standard limits | Higher limits | Highest limits + Guaranteed Replacement Cost |
Personal Property | Named-peril coverage | Replacement cost (no depreciation) | Replacement cost (no depreciation) |
Roof Replacement | Actual cash value (depreciated) | Full replacement cost | Full replacement cost |
Deductible | Standard | Standard | Lowest available |
Guaranteed Replacement Cost | Not included | Not included | Available if requirements are met |
The Enhanced tier is the sweet spot for most homeowners. The jump from Standard to Enhanced gives you roof replacement at full cost (not depreciated), replacement cost on personal property, and higher limits across the board. Premier adds Guaranteed Replacement Cost, which pays the full rebuild cost even if it exceeds your dwelling limit.
Add-Ons and Endorsements
On top of the three tiers, Farmers offers add-ons that are available across all packages:
- Eco-Rebuild: Up to $25,000 toward environmentally friendly building materials when rebuilding after a covered loss. Requires LEED, Energy Star, or similar certification. Few competitors offer anything like this.
- Emergency mortgage assistance: Covers up to $10,000 in mortgage payments (roughly 3 months) if your home is uninhabitable during repairs. Uncommon among major carriers.
- Water backup and sump pump: Covers damage from sewer backups and sump pump failures.
- Identity theft coverage: Covers expenses from identity theft, including legal fees and lost wages.
- Blanket jewelry coverage: Broader protection for jewelry without scheduling individual pieces.
- Enhanced roof coverage: Higher limits for premium roofing materials, designed to bring your roof up to modern standards.
- Brand new replacement: Replaces damaged items with brand-new versions, not refurbished or equivalent models.
What’s Not Covered
Standard exclusions apply: flood, earthquake, normal wear and tear, pest damage, and intentional damage. Farmers does not sell separate flood or earthquake policies. You will need to buy those through the NFIP or a specialist carrier. The Premier package does not cover California residents; they get the Farmers Next Generation package instead.
Pricing and Cost
Farmers are not cheap. Depending on the source and coverage level, the average homeowner’s premium is between $2,236 and $2,506 per year for $300,000 in dwelling coverage. The national average is about $2,100, so Farmers comes in 6% to 19% above average.
To give you a sense of how the tiers compare, here is a sample for a one-story home in Oklahoma with an estimated reconstruction cost of $128,000:
Package | Annual Premium |
Standard | $1,407 |
Enhanced | $1,619 |
Premier | $1,840 |
The tradeoff: You are paying more, but you are also getting more built-in features (declining deductibles, claim forgiveness, claim-free discount) than what most competitors include by default. Whether that is worth the premium difference depends on how many of those features you would actually use.
Discounts and Savings
Farmers offers 13 homeowners insurance discounts, which is on the higher end among major carriers. Availability varies by state:
Discount | Estimated Savings | Details |
Multi-policy bundling | ~10%+ | Bundle home with Farmers car insurance, life, or other Farmers policies |
Claim-free (3 years) | 10% | Built into every policy; no claims for 3 consecutive years with Farmers or your prior insurer |
New home | Up to 30% | Homes under 14 years old; this is Farmers’ largest single discount |
Protective devices | Varies | Fire alarms, security systems, and internal sprinkler systems |
Connected home | Varies | Smart home systems with remote monitoring and control |
Home safety | Varies | Water/gas shut-off devices, leak detectors, and natural disaster fortification |
Non-smoker | Varies | Discount for non-smoking households |
Preferred payment | Varies | Pay in full, in two installments, or set up autopay |
ePolicy (paperless) | Small | Go paperless for billing and documents |
Good payer | Varies | Consistent on-time payment history |
Roof discount | Varies | UL-approved asphalt or fiberglass shingles |
Green/eco-friendly | Varies | Homes built with Energy Star, LEED, or EPA certifications |
Affinity/professional | Varies | Discounts for teachers, doctors, firefighters, and other professions |
Policy rewards (included free): Every Farmers homeowners policy includes declining deductibles ($50 off per year you stay claim-free), plus claim forgiveness after 5 claim-free years with Farmers. These are not discounts you apply for; they are automatic.
Claims Experience
What the Data Says
Farmers’ claims picture is middle of the road. Not bad, but not great either.
- J.D. Power 2025 Property Claims Satisfaction: 676/1,000, slightly below the industry average of 682. The 2025 study was redesigned, so this score is not comparable to Farmers’ 2024 score of 883 under the old methodology.
- NAIC Complaint Index (2024): 1.70, above the industry baseline of 1.0. Common complaints involve claim delays and settlement disputes, not outright denials.
- Insure.com survey: 83.6% of Farmers customers scored the company well for claims handling. Only Erie (100%) and Amica (95.7%) rated higher.
- 87% of Farmers customers plan to renew their policy; 82% said they trust the company (Insurance.com survey).
The complaint index of 1.70 is above average but not alarming. For comparison, Lemonade’s is 3.85, and Liberty Mutual’s jumped to 2.86 in 2024. Farmers is not setting off red flags, but it is not in the top tier for claims experience either.
How to File a Claim
Farmers offers several ways to file:
- Online at farmers.com
- Through the Farmers mobile app
- By calling 1-800-435-7764
- Through your local Farmers agent
Customer Service and Digital Experience
Agent Network
Farmers distributes through more than 48,000 exclusive and independent agents. This is a large network, and most homeowners should be able to find a local Farmers agent. The company leans heavily on agent relationships rather than digital-first distribution.
Satisfaction Scores
Overall satisfaction is mixed. Farmers ranked below average in J.D. Power’s 2025 Home Insurance Study, and customer reviews online tend to skew negative (as they do for most large insurers). But the survey data is more encouraging: 82.9% of Farmers customers said they would recommend the company, and 87% plan to renew.
The App and Website
Farmers’ mobile app and website let you manage your policy, file claims, make payments, and contact support. The tools are functional and cover the basics. But Farmers is not a digital leader. If app quality and digital experience are top priorities for you, Lemonade, USAA, and Allstate all offer more polished digital platforms.
Financial Strength
Farmers’ financial position is solid, backed by its parent company, Zurich Insurance Group:
- AM Best: A (Excellent). Stable outlook.
- S&P: A rating for financial strength.
- Moody’s: A3 rating.
- Parent company: Zurich Insurance Group, one of the largest global insurers.
- Structure: Three reciprocal exchanges (Farmers, Fire, and Truck), managed by Farmers Group, Inc., a Zurich subsidiary.
- Favorable reserve development for four consecutive years through 2024.
- High-quality investment portfolio consisting primarily of investment-grade fixed-income securities.
What this means for you: The Zurich backing gives Farmers a level of financial security that most regional carriers cannot match. An A rating from AM Best means the company is well-positioned to pay claims, even after a bad catastrophe year. Farmers are not going anywhere.
Who Is Farmers Good For?
Best For
- Homeowners who like structured choices: The three-tier Smart Plan system takes some of the guesswork out of coverage selection. Pick Standard, Enhanced, or Premier, then customize.
- Claim-free homeowners: The built-in rewards (declining deductibles, claim-free discount, claim forgiveness) are genuinely useful if you tend not to file claims.
- Eco-conscious homeowners: The Eco-Rebuild add-on ($25K for green materials) is rare in the industry.
- California homeowners: While other carriers have pulled back, Farmers is expanding in California and raised its cap on new policies in December 2024.
- People who prefer working with an agent: 48,000+ agents means you can usually find someone local.
Not Ideal For
- Price-sensitive shoppers: Farmers costs more than average. If price is your top priority, State Farm, Erie, and USAA typically come in cheaper.
- Homeowners in the 10 excluded states or D.C.: If you live in Alaska, Delaware, Florida, Hawaii, Maine, New Hampshire, Rhode Island, South Carolina, Vermont, or West Virginia, Farmers is not available.
- Digital-first buyers: If you want a slick app experience and fully digital claims, Lemonade or USAA will serve you better.
- Homeowners who prioritize claims experience: Farmers’ J.D. Power claims score is slightly below average, and the NAIC complaint rate is above baseline. Erie, Amica, and USAA all score higher.
How to Get a Quote
Farmers offers several ways to get a homeowner’s insurance quote:
- Online at farmers.com (available in most states)
- By calling 1-888-327-6335
- Through a local Farmers agent (48,000+ agents nationwide)
Working with an agent is the best way to compare the Standard, Enhanced, and Premier tiers side by side and figure out which add-ons make sense for your situation.
How Farmers Compares
Farmers | State Farm | Liberty Mutual | |
Overall Rating | 3.5 / 5 | 4.0 / 5 | 3.5 / 5 |
Avg. Annual Premium | ~$2,236–$2,506 | ~$2,133 | ~$1,229–$1,340 |
AM Best Rating | A (Excellent) | A+ (Superior) | A (Excellent) |
J.D. Power Claims | 676 / 1,000 | 661 / 1,000 | 707 / 1,000 |
NAIC Complaint Index | 1.70 | ~1.0 | 2.86 |
Discount Options | 13+ | Moderate | 11+ |
States Available | 40 | 48 + D.C. | 49 + D.C. |
Best For | Tiered coverage | Budget + agents | Discount stacking |
Farmers vs. State Farm
State Farm is cheaper on average, has a stronger AM Best rating (A+ vs. A), and covers more states. But Farmers offers the three-tier Smart Plan system, better built-in rewards (declining deductibles, claim forgiveness), and unique add-ons like Eco-Rebuild and emergency mortgage assistance. Farmers’ claims score is also higher (676 vs. 661), though both are in the same neighborhood. If you want simplicity and a lower price, go to State Farm. If you want more coverage options and rewards for staying claim-free, Farmers has the edge.
Farmers vs. Liberty Mutual
Liberty Mutual is significantly cheaper and has a slightly higher claims satisfaction score (707 vs. 676). But Liberty Mutual’s complaint index spiked to 2.86 in 2024, compared to Farmers’ 1.70. Farmers has the better coverage structure with its three-tier system, and the built-in policy rewards are a nicer package than what Liberty Mutual offers. If price is everything, Liberty Mutual wins. If coverage structure and lower complaint volume matter, Farmers is the better bet.
Final Verdict
Farmers earns a 3.5 out of 5 in our review. The three-tier Smart Plan system is a smart way to structure homeowners’ coverage, and the built-in policy rewards (declining deductibles, claim-free discount, claim forgiveness) are genuinely useful perks that most competitors do not include by default. Add-ons like Eco-Rebuild and emergency mortgage assistance are uncommon and valuable.
The catch is price. Farmers costs more than average, and the claims experience is not strong enough to justify the premium on its own. J.D. Power’s 2025 claims score of 676 is slightly below average, and the NAIC complaint index of 1.70 is above the baseline. Overall satisfaction is below average in J.D. Power’s broader study.
Farmers is the right fit if you want a structured coverage system, value the policy rewards, and can take advantage of enough discounts to bring the price down. It is especially worth considering if you are in California (where Farmers is expanding while others pull back) or if you are a long-term policyholder who will benefit from claim forgiveness and declining deductibles. Get a quote at farmers.com, and compare it to State Farm, Erie, and USAA before making a decision.
Our Methodology
This review uses a weighted scoring system: coverage options (25%), pricing and value (20%), claims experience (20%), customer service (15%), discounts and savings (10%), and digital experience (10%).
Frequently Asked Questions
Answers to your questions about Farmers home insurance.
Farmers is a solid mid-tier choice. The three-tier Smart Plan system is a real differentiator. But premiums are above average, the J.D. Power claims score is slightly below average (676/1,000), and the NAIC complaint index of 1.70 is above the baseline of 1.0. It is a good insurer if you value coverage options and policy rewards, less so if you are focused on price or claims performance.
Farmers have been in business since 1928, nearly 100 years. It operates in 40 states through 48,000+ agents, holds an A (Excellent) rating from AM Best, and is backed by Zurich Insurance Group, one of the world’s largest insurers. Farmers is licensed and regulated in every state where it operates. It is a well-established, financially strong company.
For a policy with $300,000 in dwelling coverage, expect to pay between $2,236 and $2,506 per year, depending on the data source and your state. That is above the national average of about $2,110. Farmers’ tiered system means you can adjust your cost by choosing Standard (most affordable), Enhanced (mid-range), or Premier (highest limits). The company also offers 13 discounts that can bring your premium down.
Smart Plan Home is Farmers’ three-tier homeowners insurance system. Standard offers basic coverage at the lowest price. Enhanced adds replacement cost on personal property and full roof replacement (no depreciation). Premier includes the highest limits and Guaranteed Replacement Cost for your dwelling. Every tier comes with built-in policy rewards: declining deductibles, a claim-free discount, and claim forgiveness.
No. Farmers does not offer homeowners’ insurance in Florida. It also does not operate in Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, South Carolina, Vermont, or West Virginia. Check the Farmers’ website or contact an agent to confirm availability in your state.
No. Flood and earthquake damage are excluded from standard homeowners policies, and Farmers does not sell separate flood or earthquake coverage. You will need the National Flood Insurance Program (NFIP) or a private flood insurer for flood coverage, and a specialist carrier for earthquake insurance.
Every Farmers homeowners policy includes three built-in rewards at no extra cost. Declining deductibles reduce your deductible by $50 for every claim-free year. The claim-free discount gives you 10% off after three consecutive years without a claim (with Farmers or your previous insurer). And claim forgiveness means your premium will not increase after a claim if you have been claim-free with Farmers for five years.
