Farmers Renters Insurance Review of 2023
Farmers Insurance has a long track record of keeping insurance simple for everyone. The renters insurance by Farmers isn’t complicated, but then most of us prefer simple rather than complicated when it comes to a purchase of renters insurance.
With over 40,000 independent and exclusive agents combined and over 20,000 more corporate employees, you can be confident a professional is there to make insurance simple 24/7, whether it’s to buy renters insurance, answer service questions or a submit a claim.
Farmers Insurance Group of companies has a simple solution for all types of tenants and their insurance needs. The best part is renters’ insurance can cost as little as 10 per month (less than the national average of $15) with a Farmers insurance renters policy.
About Farmers Insurance
Farmers was founded in the 1920’s by 2 men who were friends and both from rural backgrounds. They noticed rural drivers were better drivers than city drivers and wanted to reduce the rates of rural drivers, so they started an insurance company to offer auto insurance. In the 1950’s they acquired 2 companies that expanded the lines of insurance offered like home, renters and life insurance. They also began participating in the Pasadena Rose Parade every year and still do today.
Another growth spurt in the late 1990’s and into 2000’s saw a business structure change that included Farmers Insurance Group and its company portfolio becoming a wholly owned subsidiary of Zurich Financial Services Group, but operating independently. There are multiple companies under the Farmers insurance portfolio so they can offer one-stop shopping for insurance and financial services to all their customers.
Farmers Insurance Renters Insurance Overview
Renters insurance is not required anywhere in the country, but that doesn’t mean you should go without a renters policy. Consumers should learn how damage to personal property can be devastating to their families. Trying to recover the loss of items like your clothing, furniture, and even your electronics after a storm or fire on your own can financially drain even the toughest customer.
It doesn’t matter where you live, a renters insurance policy is a benefit in a catastrophic event or an unfortunate accident, like a deck grill catching fire and damaging your property and the tenant’s apartment next door. Renter’s insurance like the Farmers policy is designed to protect you from that loss by replacing your items and if required the other tenant’s property as well.
| J.D. Power (out of 1,000) | 831 |
|---|---|
| A.M. Best - Financial Strength Rating | A |
| BBB | A- |
| NAIC Complaint Index | 0.56 |
Farmers Insurance Renters Discounts
- Non-Smoker: 2 consecutive years of non-smoking, and tenants receive a special discount for a smoke-free home.
- Multiple policies: Add a car as a second Farmers insurance policy.
- Security System or Fire Alarm: Install and activate an approved electronic security system or fire alarm.
- Career Choice: A specific industry career or organization affiliation that gives you a discount.
What are the Key Coverages for Renters Insurance?
A Farmers Insurance renters policy includes the basic coverages needed. Review the definition of actual cash value and replacement cost shown next. Farmers may automatically include replacement cost coverage for personal property as part of the basic coverage depending on the state where you live.
Actual Cash Value(ACV) or Replacement Cost (RC)
Most basic policies include actual cash value as the determination for payment of damaged personal belongings in a loss. Always make sure you verify replacement cost coverage in your quote and policy for your personal property. Replacement cost means that if your 10-year-old couch is damaged in a fire, the insurance company will pay the cost to replace it with a new one, not a comparable 10-year-old one. You may pay a few dollars more over the year for this coverage, but it is well worth the extra premium.
Personal Property
Personal property is defined by insurance as clothing, furniture, kitchen items, and other personal belongings, like a bike, laptop, and jewelry. Be diligent in asking questions if you have high-end valuables or unique items as renters insurance may not provide adequate coverage in a basic insurance policy.
Liability Coverage
Liability coverage protects you against another person who sues you for bodily injury or property damage that they believe you or your family caused. There are a variety of limits available and we recommend choosing a high limit as the cost is relatively inexpensive to purchase more than the minimum of $100,000 usually offered.
Medical Expenses
This expense category is meant to help if someone has an accident on your property and wants you to pay the hospital or bodily injury damages. You don’t have to be found at fault in court to have this coverage paid to someone else for the accident.
Additional Living Expenses (Loss of Use)
This coverage is certainly beneficial as it provides additional expenses you incur when your home is uninhabitable for a period of time due to a covered loss and you and your family must live somewhere else while the repairs are made.
Additional Coverages Worth Considering
Increased Personal Liability Limits
Tenant personal liability is normally offered with a default limit of $100,000.
We recommend reviewing the cost between the highest liability limit available and the options offered at purchase.
If a tenant is found liable for a fire in an apartment complex and multiple units suffer a loss, the liability portion is what protects the tenant from paying out of pocket. However, once the liability limit is paid out by the insurance company the tenant becomes responsible for damages. The good news is this coverage is not restricted to the tenant's residence. For example, suppose a biking accident occurs away from home and the other party wants the tenant to pay for damages. The liability coverage can extend to the incident and defend the tenant.
Higher limits are cheap to buy whether the residence is in a small multi-unit residence, a single-family home or a large complex of connected apartments all should have added protection against lawsuits.
Water Backup
Designed to help repair damage from a backup of drains, sewer, septic, or sump pump overflow of water.
Personal Article Floater
Expensive items like jewelry, electronics, a bike, electric scooters, or other unique personal property may need special coverage. Be diligent in asking questions about how these items are covered. The default coverage may not be adequate and a personal article floater can offer a lower deductible and coverage for a lost item.
Identity Theft Protection
Coverage that monitors the insureds for identity theft. A variety of services and coverage are offered with reimbursement for specified expenses that occur due to an identity theft loss.
How Does Farmers Compare with Other Renters Insurance Companies?
We chose Allstate and Nationwide to compare with Farmers Insurance. Allstate is another exclusive agent company and Nationwide offers renters policies through local independent and exclusive agents. All have multiple quoting and servicing tools making the buying and servicing options robust for prospects and customers.
| Company | National Monthly Average Sample Rate |
|---|---|
| Lemonade | $9.57 |
| State Farm | $10.83 |
| USAA | $13.70 |
| Allstate | $15.17 |
| Amica Mutual | $16.35 |
| Liberty Mutual | $16.38 |
| Progressive | $21.01 |
| Travelers | $22.14 |
| GEICO | $29.37 |
Farmers vs. Allstate
Farmers offers multiple options for purchase and service with online, mobile and agent options.
Allstate has state-of-the-art technology today with ease of access to policy information on the mobile app, too.
Customers for both Farmers and Allstate can access policy information, pay a bill or report a claim on the app. However, the Allstate Digital Footprint section of the mobile app lets clients see the type of information companies may collect about you and how it is used.
Both have the financial strength and rating customers are looking for, but customer service satisfaction is slightly below the national average for both companies with Farmers just edging out Allstate. Claims satisfaction has Farmers Insurance high on the list, while Allstate falls just below the national average. We give Farmers the edge with scores higher than Allstate for both claims and service satisfaction.
Farmers
- Financial strength and longevity in the marketplace.
- Non-smokers get an extra discount.
- Certain career and organization affiliations get a discount.
- High survey marks for customer satisfaction
- Both exclusive and independent agents can offer nonstandard insurance products.
Allstate
- Client mobile app options are easy to navigate and user-friendly with a local agent anytime you need one.
- Privacy and security features in the mobile app help keep customer information safe.
- Consumers in retirement are eligible to receive a special discount option.
- Financial rating and strength are solid.
Read a full Allstate renters insurance review.
Farmers vs. Nationwide
Nationwide has developed a niche market for tenants who might be first-time purchasers of renters insurance or have little personal property to cover. Both companies offer a basic renters policy for customers that only have minimal coverage needs. However, savings on the multi-policy discount options like car and home goes to Nationwide. Both companies have exclusive and independent agent sell and servicing renters. But Farmers has the edge in both customer and claims satisfaction over Nationwide. We give Farmers the edge for the service rankings.
Nationwide Pros
- Offer a competitively priced basic renters insurance policy.
- Coverage is available in all 50 states.
- Offer an annual review to re-evaluate your life events for gaps in coverage.
- Both exclusive and independent agents can sell renters insurance.
Farmers Pros
- Non-smokers get an extra discount.
- Certain career and organization affiliations get a discount.
- High survey marks for customer satisfaction.
- Local agents available in most markets.
Summary and Conclusion
The PropertyNest team encourages all tenants to purchase renters insurance and protect their personal property belonging in case of a catastrophic event. Tenant landlords are not responsible in most cases for the loss. For many, a loss of personal property in a fire, for example, is more than just a physical loss of property, but also an emotional event.
Buying renters insurance can give you peace of mind knowing you have chosen an insurance company with integrity to navigate the loss and help you recover.
Consider getting several renters insurance quotes to compare pricing and coverage options and remember if you live in an area prone to flood or earthquake, consider asking your insurance professional about those natural disasters, too.
