Farmers is a well-respected insurance company that offers renters insurance in all 50 states. The company stands out in certain areas, including their below-average price and easy claims process. Their digital tools make this company a good option for those who’d rather work through an app or website than talk to an agent. That being said, the company receives average to poor reviews in some ratings, including J.D. Power’s customer satisfaction survey and NAIC complaints.
Farmers Renters Insurance Overview
Farmers was founded in 1928 and since then they’ve sold over 19 million individual insurance policies to customers around the country. The company employs more than 48,000 exclusive and independent agents.
Farmers also consistently earns strong financial ratings. Overall, the general public has a good perception of Farmers. The company has an A+ rating from the Better Business Bureau (BBB) and only 9% of people have a negative opinion of the company, according to YouGov.
Overview
PROS
CONS
Farmers Highlights
Methodology
For Farmers renters insurance review we evaluated the company based on its customer rating and experience, financial stability, and coverage. To compare renters insurance companies across the board, we calculated a Reviews.com score based on the following:
- Customer Ratings– Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage– As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options available and add-ons available.
- Confidence– It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best.
- Customer Experience– The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
The Competition
| Company | Reviews.com Score | AM Best Financial Strength Rating | J.D. Power Score* | NAIC Customer Complaints |
| Farmers | 3.5 | A | 839 | Fewer complaints than average |
| State Farm | 3.75 | A++ | 836 | More complaints than average |
| Allstate | 4 | A+ | 844 | Fewer complaints than average |
| USAA | 4 | A++ | 888 | Fewer complaints than average |
| American Family | 3.75 | A++ | 840 | Fewer complaints than average |
| Nationwide | 3.75 | A+ | 831 | Fewer complaints than average |
All information accurate as of 09/25/2020
*2020 J.D. Power Home Study, based on a 1,000-point scale.
Farmers vs. State Farm
Farmers and State Farm are two of the largest insurance companies in the nation offering renters insurance in all 50 states. Both have been around for a similar amount of time — State Farm was founded in 1922, while Farmers dates back to 1928.
State Farm rates better than Farmers in most categories. While Farmers received an A financial strength rating from AM Best, State Farm received a rating of A++. Both companies scored below average in J.D. Power’s customer satisfaction survey for renters insurance, with Farmers only three points above State Farm. Finally, State Farm has a significantly lower average premium of $140 per year, compared to Farmers’ $181 per year. State Farm also made it to our national list of best renters insurance companies for its coverage options.
Farmers vs. Allstate
Allstate, another major renters insurance company, is quite comparable to Farmers. The two received similar scores across the board in financial strength, customer satisfaction and customer complaints. Allstate offers more comprehensive digital tools, including a user-friendly website and mobile app. The area where Farmers beats Allstate is average annual price — Allstate premiums are about the same as the national average, while Farmers is slightly more affordable.
The Bottom Line
Farmers renters insurance is about average compared to its competitors. You can expect roughly the same coverage you can get anywhere else, though nothing stands out about their coverage. The cost is attractive, coming in slightly below the industry average.
Farmers has made an effort to be accessible to their customers, offering many options for policyholders to file claims. The company also has customer service representatives available 24/7. Despite this effort, the company still scores poorly in some customer surveys, earning 839 points out of 1,000 in J.D Power customer satisfaction survey.
Farmers Renters Insurance FAQ
About the Authors
The Reviews.com staff is dedicated to providing you with all the deep-dive details. Our writers, researchers, and editors came together from Charlotte, Seattle, San Juan, Fort Worth, Fort Lauderdale, San Diego, and Chicago to put this review together.
