Farmers Home Insurance Review 2026

Farmers Insurance Exchange carries an AM Best financial strength rating of A (Excellent). AM Best's A rating indicates the carrier has strong financial capacity to meet ongoing insurance obligations — it is one tier below A+ (Superior) and two tiers below A++ (the highest). For homeowners insurance, where claims can include total-loss events, carrier financial strength matters: you want confidence the insurer will still be solvent and paying claims years from now. Verify the current Farmers rating at ambest.com before purchasing.

Farmers Insurance stopped accepting new homeowners insurance applications in California, citing the state's wildfire exposure and rising reinsurance costs — a retreat consistent with what State Farm and Allstate also announced around the same period. Existing Farmers policyholders in California may retain their policies, but new applicants should check the current status at farmers.com/home-insurance or contact a local Farmers agent. California's FAIR Plan (state insurer of last resort) and the California Department of Insurance (insurance.ca.gov) provide alternatives and information for homeowners in high-risk areas.

Farmers is a solid mid-tier carrier for most homeowners, with three clear strengths and two notable caveats. Strengths: (1) AM Best A (Excellent) financial strength rating — Farmers Insurance Exchange has maintained this rating, indicating strong capacity to pay claims including catastrophic-loss events; (2) Broad coverage customization — identity theft protection, eco-rebuild, declining deductible, and claim forgiveness riders are available options not universally offered by competitors; (3) Local agent model — a dedicated Farmers exclusive agent provides in-person guidance and local-market knowledge that digital-only carriers can't replicate. Caveats: (1) J.D. Power's U.S. Home Insurance Satisfaction Studies have placed Farmers in the middle of the industry peer group, not among top performers like USAA — verify the most current study at jdpower.com; (2) NAIC complaint ratios for Farmers have historically run slightly above the national median for some product lines — review current data at content.naic.org before purchasing. Bottom line: Farmers is a legitimate, financially strong carrier worth quoting alongside State Farm and Allstate if you want an agent relationship and bundling options. It is not the right choice if you are in California (new-policy restrictions apply) or if J.D. Power claims satisfaction is your primary ranking criterion.

No. ClearValue Lending is not a licensed insurance broker or agent. This review presents publicly available information about Farmers Insurance home products. Coverage terms, pricing, state availability, and discounts vary — obtain official quotes and policy details directly from Farmers or a licensed insurance professional.

Farmers offers several optional endorsements not universally available from major national carriers: (1) Identity theft protection — covers expenses related to ID theft recovery; (2) Eco-rebuild — pays to rebuild with eco-friendly materials if your home is destroyed; (3) Declining deductible — reduces your deductible each claim-free year; (4) Claim forgiveness — a first claim does not increase your premium. Availability and pricing vary by state. Verify at farmers.com or through a local Farmers exclusive agent. Source: Farmers policy disclosures at farmers.com.

Farmers has placed in the middle of the industry peer group in J.D. Power's annual U.S. Home Insurance Satisfaction Study in recent cycles — above some national carriers but below top performers like USAA, Amica, and Erie. J.D. Power measures satisfaction across claims handling, policy communication, billing, and price. Source: J.D. Power U.S. Home Insurance Study — verify current rankings at jdpower.com.