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Farmers Homeowners Insurance Review 2026: Coverage, Rates, Pros & Cons
July 1, 2025
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The content on this page is accurate as of the posting date; however, some of the offers and rates mentioned may have changed.
Farmers Insurance is one of the most recognized names in home insurance, and in 2026 it ranks among the top five homeowners insurers nationally — up from No. 6 last year. It earns that standing with a wide range of coverage options, a strong set of loyalty perks, and a low complaint ratio that signals generally solid service delivery.
That said, Farmers is not the right fit for every homeowner. Its premiums tend to run above the national average, it's unavailable in a meaningful number of states, and its customer satisfaction scores in independent surveys sit just below the industry average. Whether it's worth it depends heavily on your coverage priorities, your location, and how much you value perks like claim forgiveness and a declining deductible.
Here's our full 2026 breakdown.
What's New in 2026
Farmers moved up one spot in Insure.com's 2026 Best Home Insurance Companies ranking, climbing to No. 5. The improvement was driven primarily by a low consumer complaint volume and consistently strong scores across claims handling and customer experience metrics — a signal that Farmers' service quality has held steady even as the broader home insurance market has faced pressure from rising construction costs and catastrophe claims.
Farmers also continues to operate with an "A" financial strength rating from AM Best, indicating reliable claims-paying ability — an important baseline for any insurer you're considering for long-term coverage.
One notable market development: home insurance rates have continued to rise nationally in 2026, driven by inflation in rebuilding costs, increased severe weather events, and insurer pullbacks from high-risk markets. Farmers has not been immune to these trends. The company has implemented rate increases in certain markets and continues to limit its footprint in states with high catastrophe exposure.
Farmers at a Glance
- Best for: Homeowners who want broad, customizable coverage and are willing to pay a modest premium for loyalty perks and policy flexibility.
- Not ideal for: Budget-focused homeowners, residents of Florida or several Northeastern states, or those who prioritize the lowest possible premium above all else.
- AM Best Rating: A (Excellent)
- NAIC Complaint Ratio: Below average — fewer complaints than expected for an insurer of its size, a positive indicator
- 2026 National Ranking: No. 5 (Insure.com), No. 5 (InsuranceNewsNet)
- State Availability: 41 states
Pros and Cons
Pros
- Wide range of coverage options and optional add-ons that allow meaningful policy customization
- Unique loyalty perks including claim forgiveness and a declining deductible that reward long-term customers
- Strong financial stability with an AM Best "A" rating
- Low NAIC complaint ratio — fewer complaints than expected for an insurer of its size
- Long list of available discounts for bundling, safety features, profession, and more
- Modern digital tools including online quoting, a mobile app, and 24/7 claims reporting
Cons
- Premiums tend to run above the national average
- Not available in all states — unavailable in Florida and several Northeastern and other states
- Overall customer satisfaction scores in J.D. Power surveys sit slightly below the industry average
- Some of the most valuable perks require long claim-free periods to activate
Coverage Options
Standard Coverage
Every Farmers homeowners policy includes the core protections you'd expect from a major insurer: dwelling coverage for your home's structure, other structures coverage (for garages, fences, and sheds), personal property coverage for your belongings, loss of use coverage if your home becomes uninhabitable during repairs, personal liability protection, and guest medical coverage. These are standard across the industry and form the foundation of every Farmers policy.
Optional Add-Ons and Unique Features
Where Farmers differentiates itself is in the depth of optional coverages and loyalty-oriented perks available. Standout options include:
Claim forgiveness: If you've maintained a claim-free record for a qualifying period, Farmers will not raise your rate after a single claim. This is a meaningful benefit for long-term policyholders who want protection against premium spikes.
Declining deductible: For every consecutive claim-free year, Farmers reduces your deductible by a set amount. Over time this can meaningfully lower your out-of-pocket cost if you ever do file a claim — a benefit that compounds with customer loyalty.
Extended and guaranteed replacement cost: Standard dwelling coverage pays up to your policy limit to rebuild your home. Extended or guaranteed replacement cost coverage pays beyond that limit if actual rebuilding costs exceed what was estimated — an important safeguard in markets where construction costs have risen sharply.
Emergency mortgage assistance: If a covered disaster makes your home uninhabitable, Farmers can cover a portion of your mortgage payments for a limited period while you're displaced. This is a relatively uncommon benefit among major home insurers and can provide meaningful financial relief in the aftermath of a significant loss.
Additional options: Farmers also offers water backup coverage for sewer or sump pump failures, identity theft protection, homeshare coverage for short-term rental hosts, roof replacement upgrade coverage, and more. These allow homeowners to build a policy tailored to their specific risk profile, though each add-on will increase your premium.
Cost and Discounts
What to Expect on Cost
Farmers' premiums tend to run above the national average for homeowners insurance. The exact premium you'll pay depends on your home's location, age, construction type, coverage limits, deductible, and claims history — and will vary significantly from state to state. If cost is your primary concern, getting quotes from multiple insurers before committing is strongly recommended.
Broader market factors have also pushed home insurance rates upward in recent years. Inflation in materials and labor, increased frequency of severe weather events, and insurers pulling back from high-risk markets have all contributed to rising premiums industry-wide. Farmers reflects these trends.
Discounts That Can Help
Farmers offers one of the longer lists of available discounts among major home insurers. These include:
- Bundling: A discount for purchasing home and auto insurance (or other policies) through Farmers — one of the most commonly cited ways to reduce your premium
- Protective devices: Discounts for installing burglar alarms, fire alarms, sprinklers, or smart home security devices
- Claims-free: Savings for policyholders who have gone without filing a claim for a qualifying period
- New or renovated home: A lower rate for recently built or updated homes, which tend to carry lower risk
- Pay-in-full: A discount for paying your annual premium upfront rather than monthly
- Profession-based: Discounts available for certain occupations including teachers, first responders, and medical professionals
- Paperless: A small discount for opting into electronic billing and documents
- Non-smoker: A discount reflecting the reduced risk associated with non-smoking households
Taken together, these discounts can meaningfully offset Farmers' higher base premiums — so it's worth asking a Farmers agent specifically which ones apply to your situation before ruling the company out on price alone.
Customer Satisfaction and Complaints
J.D. Power
In recent J.D. Power Home Insurance Study results, Farmers scored slightly below the industry average for overall customer satisfaction. This places it in the middle of the pack among major national insurers — not a red flag, but not a standout either. Areas like claims handling and customer service are where some policyholders have reported mixed experiences.
NAIC Complaint Ratio
On complaint volume, Farmers tells a more positive story. Its NAIC complaint ratio is below average for an insurer of its size — meaning it receives fewer formal consumer complaints than would be expected given the number of policies it writes. Fewer complaints generally signals that serious service failures are relatively uncommon and that issues, when they arise, tend to get resolved.
Survey Data
Insure.com's 2026 survey data found that a strong majority of Farmers policyholders would recommend the company and plan to renew their policy — both positive indicators of baseline satisfaction among current customers, even if independent benchmarks place Farmers slightly below the top tier.
Digital Experience
Farmers offers a functional digital experience that meets modern standards. Policyholders can get quotes, manage their policy, file or track claims, and make payments through Farmers' website or mobile app. Online quoting may not be available in all states. Claims reporting is available around the clock by phone.
State Availability
Before spending time evaluating Farmers in depth, confirm that it's available in your state. Farmers homeowners insurance is currently offered in approximately 41 states.
States where Farmers is NOT available: Florida, Hawaii, Alaska, Maine, New Hampshire, Vermont, Rhode Island, Delaware, West Virginia, and Washington, D.C.
Farmers made the decision to pause writing new home insurance policies in Florida due to the state's high hurricane exposure and challenging insurance market conditions. Similar considerations drive its absence in other higher-risk or lower-density markets.
If you live in one of these states, you'll need to evaluate other insurers. In the states where Farmers does operate, it is a major player with a network of local agents and accessible digital tools.
Who Is Farmers Best For?
Farmers is a strong fit if you:
- Own a home in one of the 41 states where Farmers operates
- Value broad, customizable coverage over the lowest possible premium
- Plan to stay with one insurer long-term and want to earn loyalty perks like declining deductibles and claim forgiveness
- Are bundling home and auto insurance and want to consolidate policies under one carrier
- Have a newer or recently renovated home that may qualify for additional discounts
- Work in a profession that qualifies for Farmers' occupation-based discounts
Farmers may not be the best fit if you:
- Live in Florida, Hawaii, or one of the other states where Farmers doesn't write new policies
- Are primarily focused on finding the lowest premium and plan to comparison shop aggressively
- Want the highest possible J.D. Power customer satisfaction scores as your primary criterion
- Are looking for flood or earthquake coverage as part of a standard policy
What Farmers Doesn't Cover
Like all standard homeowners insurance policies, a Farmers policy does not automatically cover damage from flooding or earthquakes. These are separate perils that require separate policies or endorsements.
If you live in a flood zone or an area with seismic activity, you'll need to purchase flood insurance — typically through the National Flood Insurance Program or a private flood insurer — and earthquake coverage separately. Farmers does offer these as separate products or through partners in some markets, but they are not part of a standard home insurance policy.
It's also worth reviewing your policy carefully for exclusions related to maintenance-related damage, gradual deterioration, and certain types of water damage not covered under standard terms. A Farmers agent can walk you through what your specific policy does and doesn't cover.
How Farmers Compares to Alternatives
Farmers is a competitive option in the mid-tier of major home insurers, but it's not the only strong choice available. A few comparisons worth knowing:
Farmers vs. State Farm: State Farm is available in more states (47 vs. Farmers' 41) and tends to offer lower base premiums. State Farm ranks higher in independent 2026 ratings. For homeowners who prioritize availability and competitive pricing, State Farm is worth comparing directly.
Farmers vs. Nationwide: Farmers and Nationwide have traded rankings closely in recent years, sitting at No. 5 and No. 6 respectively in 2026. Both are competitive mid-tier options. Nationwide's SmartRide and SmartHome programs offer distinct discount paths worth exploring if you're comparison shopping.
Farmers vs. Liberty Mutual: Liberty Mutual offers broad national availability and competitive pricing in some markets. Its digital tools and bundling discounts are comparable to Farmers, though its complaint ratio is somewhat higher.
The most important comparison is always the one you get from actual quotes. Rates vary significantly by location, home characteristics, and coverage needs — what's cheaper in one state or zip code may be more expensive in another. Getting at least three quotes before deciding is the standard recommendation.
Frequently Asked Questions
Is Farmers homeowners insurance good?
Yes — Farmers ranks No. 5 nationally in 2026 among major home insurers per Insure.com, with an AM Best "A" financial strength rating and a below-average NAIC complaint ratio. Its coverage options are broad and its loyalty perks are genuinely useful for long-term policyholders. Its main drawbacks are above-average premiums and below-average J.D. Power satisfaction scores relative to the top-tier carriers.
Is Farmers homeowners insurance expensive?
Farmers' premiums tend to run above the national average. The exact cost depends on your home, location, coverage limits, and deductible. The company offers a long list of discounts that can help offset higher base rates — bundling home and auto is typically the most impactful. Always get a personalized quote and compare it against at least two or three other carriers before deciding.
Does Farmers cover floods or earthquakes?
No. Standard Farmers homeowners policies exclude flood and earthquake damage, as is the case with virtually all standard home insurance policies. These require separate coverage — flood insurance through the National Flood Insurance Program or a private insurer, and earthquake coverage through a separate policy or endorsement. Farmers offers these separately in some markets.
Can I bundle home and auto insurance with Farmers?
Yes, and Farmers actively encourages it with a multi-policy discount. Bundling home and auto — or adding other policy types like life insurance — can produce meaningful savings on both policies. It's one of the most effective ways to offset Farmers' higher base premiums.
Is Farmers homeowners insurance available in Florida?
No. Farmers paused writing new homeowners policies in Florida due to the state's high hurricane risk and challenging insurance market conditions. If you're in Florida, you'll need to seek coverage from a different insurer. Always verify current availability directly with Farmers or a licensed agent, as market participation can change.
What is Farmers' AM Best rating?
Farmers holds an "A" (Excellent) rating from AM Best, indicating strong financial stability and a reliable ability to pay claims. This is a reassuring baseline for any insurer you're considering for long-term home coverage.
How do I file a claim with Farmers?
Farmers offers multiple ways to file a claim: through its website, via the Farmers mobile app, or by calling its claims line, which is available 24 hours a day. You can also track the status of an open claim through the app or website.
What discounts does Farmers offer?
Farmers offers a broad range of discounts including multi-policy (bundling), protective device installation, claims-free history, new or renovated home, pay-in-full, paperless billing, non-smoker, and certain profession-based discounts. Availability varies by state — ask a Farmers agent which specific discounts apply to your situation.
Conclusion
Farmers homeowners insurance is a solid choice for homeowners who want broad, customizable coverage and are willing to pay a modest premium for the flexibility and loyalty perks the company provides. Its claim forgiveness, declining deductible, and extended replacement cost options set it apart from more basic competitors — and its low complaint ratio suggests that the claims experience, when it matters most, is generally sound.
That said, it isn't the cheapest option on the market, and its customer satisfaction scores in independent benchmarks are slightly below the industry's top tier. For budget-focused homeowners or those in states where Farmers doesn't operate, it may not be the right fit.
The best move is to compare. Use a tool like Kudos to quickly compare Farmers against other top home insurance options, factor in your specific coverage needs and available discounts, and see who offers the best value for your home and situation.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
