Farmers Homeowners Insurance Review: 2026 Pros, Cons, and Alternatives

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 captive agents. The company is not publicly traded. It is a group of three reciprocal exchanges managed by Farmers Group, Inc., a wholly owned subsidiary of Zurich Insurance Group.

What separates Farmers from most homeowners insurers is the Smart Plan Home system. Instead of handing you a generic HO-3 and asking which endorsements you want to add, Farmers gives you three tiers: Standard, Enhanced, and Premier. Each tier includes the standard six coverage types and progressively higher limits. Built into every tier at no extra cost are declining deductibles ($50 off per year you stay claim-free), 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. For $300,000 in dwelling coverage, expect to pay roughly $2,236 to $2,506 per year, against a national average of about $2,110. The claims experience is also middling: J.D. Power gave Farmers a 676 out of 1,000 in the 2025 Property Claims Satisfaction Study, just below the industry average of 682. Those two factors kept Farmers off our list of the best homeowners insurance companies.

Pros and Cons

Pros

• Three-tier Smart Plan system: Standard, Enhanced, and Premier packages let you pick a coverage level and customize from there, rather than building a policy from scratch.
• Built-in policy rewards: Declining deductibles ($50/year), a 10% claim-free discount, and claim forgiveness after five claim-free years come standard. Most competitors charge extra for these or do not offer them at all.
• Eco-Rebuild: Up to $25,000 toward green materials when rebuilding after a covered loss. Very few other carriers offer anything comparable.
• Emergency mortgage assistance: Covers up to $10,000 (roughly three months of mortgage payments) if your home is uninhabitable after a covered loss.
• Large captive agent network: 48,000+ agents means you can usually find a local Farmers agent. This is not a company going digital-only anytime soon.
• Mobile home coverage via Foremost: Farmers’ Foremost subsidiary writes mobile and manufactured home policies, which most standard carriers skip entirely.
• Expanding in California: In December 2024, Farmers raised its cap on new homeowners policies in California from 7,000 to 9,500 per month, while carriers like State Farm were pulling back.

Cons

• Above-average pricing: At $2,236 to $2,506 per year for $300,000 in dwelling coverage, Farmers runs 6% to 19% above the national average of about $2,110.
• 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 claims score: Farmers scored 676 out of 1,000 in the 2025 Property Claims Satisfaction Study against an industry average of 682.
• NAIC complaint index of 1.70: Above the industry baseline of 1.0. Most complaints involve claim delays and settlement disputes.
• Agent quality varies by location: The captive model means your experience depends heavily on which agent you get. A strong local agent is a real asset; a weak one is a real problem.
• Not a digital leader: The app and website are functional, but Farmers lags behind Lemonade, USAA, and even Allstate on digital tools and user experience.

Farmers Home Insurance 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 limits and features:

The Enhanced tier is the sweet spot for most homeowners. Upgrading from Standard to Enhanced gets you roof replacement at full cost rather than depreciated value, 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 stated dwelling limit.

Other Policy Types

Beyond the standard HO-3, Farmers writes HO-6 condo policies and landlord policies for rental properties. Mobile and manufactured home coverage comes through Foremost, a Farmers subsidiary that specializes in non-standard property. Foremost has been writing mobile home policies for decades and is one of the few national carriers willing to take that risk at scale.

Add-Ons and Endorsements

On top of the three tiers, Farmers offers add-ons 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.
• Emergency mortgage assistance: Covers up to $10,000 in mortgage payments (roughly three months) if your home is uninhabitable during repairs.
• 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.
• Brand new replacement: Replaces damaged items with brand-new versions, not refurbished equivalents.

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 go through the NFIP or a specialty carrier for those. California residents do not get the standard Premier package; they get the Farmers Next Generation package instead.

Pricing and Cost

Farmers is not cheap. The average homeowners premium runs $2,236 to $2,506 per year for $300,000 in dwelling coverage, against a national average of about $2,110. That puts Farmers 6% to 19% above average depending on the source and the state.

To show how the tiers compare, here is a sample for a one-story home in Oklahoma with an estimated reconstruction cost of $128,000:

You are paying more, but more is built in. Declining deductibles, claim forgiveness, and the claim-free discount come standard, without the add-on fees competitors charge for equivalent features. Whether that closes the gap depends on how long you stay and how few claims you file.

Discounts and Savings

Farmers offers 13 homeowners insurance discounts, on the higher end among major carriers. Availability varies by state:

Policy rewards (included free): Every Farmers homeowners policy includes declining deductibles ($50 off per year you stay claim-free) and claim forgiveness after five claim-free years with Farmers. These are automatic, not discounts you have to apply for.

One discount worth flagging: the bundle discount with Farmers auto. Carrying both policies with Farmers is one of the faster ways to close the price gap with cheaper competitors, and an agent can show you the combined premium side by side.

Claims Experience

What the Data Says

Farmers’ claims picture is middle of the road. Not bad, but not good enough to justify the above-average price on its own.

• J.D. Power 2025 Property Claims Satisfaction: 676 out of 1,000, slightly below the industry average of 682. The 2025 study was redesigned, so this score is not directly comparable to Farmers’ 2024 score of 883 under the old methodology.
• NAIC Complaint Index (2024): 1.70, above the industry baseline of 1.0. Most 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.
• Insurance.com survey: 87% of Farmers customers plan to renew their policy; 82% said they trust the company.

A complaint index of 1.70 is above average but not alarming. Lemonade’s sits at 3.85 and Liberty Mutual’s jumped to 2.86 in 2024. Farmers is not setting off red flags, but Erie, Amica, and USAA all run cleaner complaint numbers.

How to File a Claim

Farmers offers several ways to file:

1. Online at farmers.com
2. Through the Farmers mobile app
3. By calling 1-800-435-7764
4. Through your local Farmers agent

Customer Service and Digital Experience

Agent Network

Farmers distributes through more than 48,000 captive agents. The captive model cuts both ways. A good local agent who knows your market, checks in at renewal, and advocates for you during a claim is a genuine advantage over a call-center-only carrier. A disengaged agent who never reviews your coverage is just an extra step between you and the 800 number. Agent quality varies enough by location that it is worth asking around before you commit.

Satisfaction Scores

Overall satisfaction is mixed. Farmers ranked below average in J.D. Power’s 2025 Home Insurance Study. Survey data tells a more favorable story: 82.9% of Farmers customers said they would recommend the company, and 87% plan to renew. Those two data points do not contradict each other. Customers who never filed a claim tend to be happy; customers who did often are not.

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. Farmers is not a digital leader. If app quality and digital experience are priorities, Lemonade, USAA, and Allstate all offer more polished 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.
• Investment portfolio consisting primarily of investment-grade fixed-income securities.

The Zurich backing gives Farmers a level of financial security most regional carriers cannot match. An A from AM Best means the company is well-positioned to pay claims even after a bad catastrophe year. Profits flow to a foreign parent, which is worth knowing, but it does not change the claims-paying reality for policyholders.

Who Is Farmers Good For?

Best For

• Homeowners who want structured choices: The three-tier Smart Plan system takes the guesswork out of coverage selection. Pick Standard, Enhanced, or Premier, then customize from there.
• Claim-free homeowners: The built-in rewards compound over time. Declining deductibles, the claim-free discount, and claim forgiveness are worth real money to someone who does not file often.
• Eco-conscious homeowners: The Eco-Rebuild add-on ($25,000 for green materials) is rare in the standard market.
• California homeowners: While other carriers have pulled back, Farmers raised its cap on new policies to 9,500 per month in December 2024. The California Department of Insurance (CDI) has been pushing carriers to maintain availability under the Sustainable Insurance Strategy; Farmers is one of the few majors actually complying.
• Mobile home owners: Coverage through Foremost is available where most standard carriers will not write the risk.
• Agent-relationship buyers: 48,000+ agents means you can usually find someone local who will actually pick up the phone.

Not Ideal For

• Price-sensitive shoppers: Farmers costs more than average. State Farm homeowners insurance, Erie, and USAA typically come in cheaper.
• Homeowners in the 10 excluded states or D.C.: Alaska, Delaware, Florida, Hawaii, Maine, New Hampshire, Rhode Island, South Carolina, Vermont, and West Virginia are not served.
• Digital-first buyers: If you want a fully digital claims experience, Lemonade home insurance or USAA will serve you better.
• Homeowners who prioritize claims experience: Farmers’ J.D. Power claims score is below average and the NAIC complaint rate is above baseline. Erie, Amica home insurance, and USAA all score higher on both measures.

How to Get a Quote

Farmers offers several ways to get a homeowners insurance quote:

1. Online at farmers.com (available in most states)
2. By calling 1-888-327-6335
3. Through a local Farmers agent (48,000+ agents nationwide)

Working with an agent is the most useful path for comparing the Standard, Enhanced, and Premier tiers side by side. The online quoting tool will get you a number, but it will not walk you through which add-ons close the gaps in your coverage.

How Farmers Compares

Farmers Homeowners Insurance vs. State Farm Homeowners Insurance

State Farm is cheaper on average, holds a stronger AM Best rating (A+ vs. A for Farmers), and covers more states. Farmers counters with the three-tier Smart Plan system, better built-in rewards, and unique add-ons like Eco-Rebuild and emergency mortgage assistance. Farmers’ 2025 J.D. Power claims score (676) also edges out State Farm’s (661), though both sit below the industry average. If price and simplicity are the priorities, State Farm wins. If you want more structured coverage choices and rewards for staying claim-free, Farmers has the edge.

Farmers Homeowners Insurance vs. Liberty Mutual Homeowners Insurance

Liberty Mutual home insurance is significantly cheaper and scored higher on J.D. Power’s 2025 claims study (707 vs. 676). But Liberty Mutual’s NAIC complaint index spiked to 2.86 in 2024 against Farmers’ 1.70. Farmers’ three-tier coverage structure is also a cleaner package than what Liberty Mutual offers. If price is the only metric, Liberty Mutual wins. If lower complaint volume and a more structured coverage system matter, Farmers is the better choice.

Final Verdict

Farmers earns a 3.5 out of 5. The three-tier Smart Plan system is a genuinely useful way to structure homeowners coverage, and the built-in policy rewards (declining deductibles, claim-free discount, claim forgiveness) are perks most competitors do not include by default. Eco-Rebuild and emergency mortgage assistance are uncommon in the standard market. Mobile home coverage through Foremost rounds out a broader product lineup than most major carriers offer.

The catch is price and claims performance. Farmers costs more than average, and the claims numbers do not justify the premium on their own. A J.D. Power claims score of 676 sits below the industry average of 682, the NAIC complaint index of 1.70 is above baseline, and overall satisfaction in J.D. Power’s broader study is below average.

Farmers is the right fit if you want a structured coverage system, plan to stay long enough for the policy rewards to compound, and can use enough discounts to close the price gap. It is worth a hard look if you are in California, where the CDI’s Sustainable Insurance Strategy is pressuring carriers to stay in the market and Farmers is one of the few actually expanding. Compare the quote against State Farm, Erie, and USAA before deciding.

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%).

Michael Wagner Editor

Driven by a lifelong mission to master his personal finances, Michael Wagner is a seasoned personal finance writer with 10 years of expertise covering retirement plans and insurance. Growing up in a lower-middle-class household, Michael became obsessed with finance upon graduating from college. His passion is rooted in sharing that hard-earned knowledge. As a former licensed insurance agent, he brings a practical, licensed perspective to his content, helping readers answer their most pressing questions and ultimately improve their financial standing.

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