Coverage Options: What Does Farmers Home Insurance Cover?

Farmers homeowners insurance starts with a solid foundation of standard protections that apply to virtually every policy. Understanding what's included — and what you can add on — is the first step to knowing whether Farmers is the right fit for your home.

Standard Coverage Inclusions

Every Farmers homeowners policy includes the following core protections:

Optional Add-Ons and Unique Features

Where Farmers really stands out is in its optional coverage enhancements. These allow homeowners to build a policy tailored to their specific risks and lifestyle:

• Guaranteed/Extended Replacement Cost — Pays up to 25% above your dwelling limit if rebuilding costs exceed your policy limits, protecting against construction cost surges
• Equipment Breakdown Coverage — Covers sudden mechanical or electrical failures of appliances and home systems not normally covered by standard policies
• Identity Theft Protection (Identity Shield) — Provides financial protection and recovery services if your personal information is compromised
• Water Backup Coverage — Protects against damage from sewer or sump pump backups
• Roof Replacement Upgrade — Allows you to rebuild with stronger roofing materials after a loss
• Homeshare Coverage — Designed for Airbnb-style short-term rental hosts
• Emergency Mortgage Assistance — Covers up to three months or $10,000 in mortgage payments if your home becomes uninhabitable
• Scheduled Personal Property — Extra coverage for high-value items like jewelry, art, or instruments
• Building Ordinance or Law Coverage — Pays the added cost of bringing your home up to current building codes after a covered loss

Policy Types Available

Farmers doesn't just cover single-family homes. Their policy lineup includes:

• Single-family homeowners insurance
• Condo insurance
• Mobile/manufactured home insurance
• Rental property insurance
• Seasonal/vacation home insurance
• Older home insurance

Note: Standard Farmers policies do not cover flood or earthquake damage. These require separate policies, which Farmers can help you obtain through partner programs.

Farmers Home Insurance Cost by State

One of the most critical factors shoppers consider is price. Farmers' national average sits at approximately $3,250 per year — roughly $760 above the industry average of $2,490. However, rates vary dramatically by location, home value, and risk profile.

Average Annual Premiums by State (Based on $300K Dwelling Coverage)

States with the highest Farmers rates — like Oklahoma, Colorado, and Texas — reflect elevated risks from tornadoes, hailstorms, and wildfires. Meanwhile, low-risk states like Wisconsin and Utah offer some of the most competitive rates in Farmers' portfolio.

How Farmers Compares to Competitors

For context, check out our full best home insurance companies guide to see how Farmers ranks among all major national carriers.

Discounts, Bundling & Financial Strength

Available Discounts

Farmers is frequently recognized for its broad discount menu. Here are the key ways to reduce your premium:

Farmers' Loyalty Perks

Beyond standard discounts, Farmers rewards long-term customers with two standout features:

• Declining Deductible: Your deductible drops by $50 for every year your policy remains claim-free — helping reduce your out-of-pocket costs over time
• Claim Forgiveness: After a qualifying period of claim-free history, your first claim will not trigger a rate increase

Financial Strength Ratings

A key question when choosing any insurer is: will they actually be able to pay when I file a claim? Farmers' core property and casualty entities hold an AM Best Financial Strength Rating of A (Excellent), backed by parent company Zurich Insurance Group. This rating reflects excellent capacity to meet policyholder obligations and provides strong confidence in Farmers' long-term stability.

Customer Satisfaction, Claims & Who Farmers Is Best For

Customer Satisfaction & Claims Reviews

Farmers receives a mixed but informative picture across major rating sources:

While J.D. Power scores suggest below-average satisfaction — especially around claims — Insure.com's broader consumer survey paints a more positive picture, with 93% of Farmers customers planning to renew. The disconnect likely reflects that satisfied customers are less likely to leave online reviews, while frustrated claimants are more vocal.

Common positive feedback highlights Farmers' knowledgeable local agents and policy flexibility. Common complaints center around rate increases, claims delays, and communication gaps during the claims process.

Local Agent Model vs. Online-First Competitors

Farmers operates through a network of 18,000+ local agents across the U.S. This stands in sharp contrast to digital-first competitors like Lemonade, which use AI-driven platforms for instant quotes and automated claims.

For homeowners with complex coverage needs, high-value properties, or older homes, the agent-driven model offers real advantages. For renters or first-time buyers with straightforward needs, an online competitor like Lemonade may offer a faster, cheaper starting point.

Who Should Choose Farmers Home Insurance?

Farmers is best suited for:

• Homeowners who want highly customized coverage with a wide range of add-ons
• Buyers with newer homes who can capitalize on the up to 34% new home discount
• Households looking to bundle home and auto for meaningful long-term savings
• Homeowners who prefer working with a dedicated local agent for personalized guidance
• Those in lower-risk states where Farmers' rates are competitive (e.g., Wisconsin, Utah, Pennsylvania)

Farmers may NOT be the best fit if:

• You're primarily focused on finding the lowest possible premium
• You prefer a fully digital, self-service experience
• You live in a state where Farmers has limited availability (e.g., Florida)
• Customer service consistency is a top priority

For a head-to-head comparison against other top carriers, see our State Farm vs. Allstate comparison guide.

Frequently Asked Questions About Farmers Home Insurance

Is Farmers a good home insurance company?

Farmers is a solid choice for homeowners who want flexible, customizable coverage and value a local agent relationship. It earns an A (Excellent) AM Best financial strength rating and offers one of the most comprehensive menus of optional coverages in the industry. However, its premiums run above the national average, and J.D. Power claims satisfaction scores are below industry average — so it may not be the ideal fit for budget-focused shoppers.

How much does Farmers home insurance cost per month?

Farmers' national average sits around $3,250 per year, which works out to approximately $271 per month. However, costs vary widely by state — from as low as $141/month in Wisconsin to over $785/month in Oklahoma. Factors like your home's age, location, claims history, and the coverage options you choose will all affect your final rate.

Does Farmers offer a home and auto bundle discount?

Yes. Farmers offers one of the most valuable bundling programs among major insurers. Customers who combine home and auto policies can save up to 22% on average, with Farmers reporting average bundle savings of approximately $1,232 per year. Bundling additional policies like umbrella or life insurance can extend your savings further.

What makes Farmers home insurance unique compared to other carriers?

Farmers differentiates itself through features like the Declining Deductible (your deductible drops $50 for each claim-free year), Claim Forgiveness (no rate hike after your first claim), guaranteed replacement cost coverage up to 25% above your dwelling limit, equipment breakdown protection, and identity theft coverage. These features, combined with a robust local agent network, set Farmers apart from both traditional and digital-first competitors.

How do I get a Farmers home insurance quote?

You can get a Farmers quote online at Farmers.com or by contacting a local Farmers agent directly. To get an accurate quote, have the following information ready: your home's age, square footage, construction type, current roof condition, your preferred dwelling coverage amount, deductible preference, and any desired add-ons. Comparing quotes from at least 2–3 insurers is always recommended to ensure you're getting competitive pricing for your coverage level.