GEICO vs. Farmers
Which Has Better Home Insurance in 2023?
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Last Updated: July 11, 2023
It’s hard to miss names like GEICO and Farmers when you’re looking for insurance. Both companies have a long history in the insurance business, collectively holding a large share of the auto insurance market. But the companies offer more than just auto insurance, and we’re going to look at another major insurance—homeowners insurance.
With that said, which is the best for you? We’re going to look at home insurance from both companies for an easy comparison.
GEICO vs. Farmers: Head-to-Head
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|Better Business Bureau (BBB) rating||A+||A|
Both GEICO and Farmers have excellent ratings from A.M. Best for financial strength. GEICO has a slightly superior rating, but Farmers still claims an excellent financial grade. These ratings mean that both companies can pay out your insurance claims.
GEICO vs. Farmers: Pros and Cons
- ✔Impressive list of endorsements for added coverage beyond standard policies.
- ✔You can qualify for a car insurance discount for buying home insurance through its agency.
- ✔Efficient & interactive website helps customers reach out to the company.
- ❌Your policy won’t be from GEICO, and you can’t choose which company will be selected for you.
- ❌Discounts are limited compared to competitors.
- ✔Has very few homeowners insurance complaints.
- ✔Offers unique discounts
- ✔Reduces your deductible by $50 every year you have an active homeowners policy.
- ✔Customizable dwelling, other structures and liability coverage with flexible limits.
- ✔Offers extended and guaranteed replacement cost options
- ❌Can be pricier than competitors like Progressive and Lemonade that don’t have brick-and-mortar locations.
GEICO Home Insurance
GEICO is synonymous with auto insurance, but it’s not limited to it. It also provides other insurance products, such as homeowners, renters, boat, and business insurance. But we’re going to dive into GEICO home insurance.
Note that GEIO doesn’t underwrite home insurance but partners with companies that offer homeowners insurance. Once you request a quote, the GEICO Insurance Agency matches you with a third-party insurer that meets your coverage requirements.
The agency helps you find a homeowners’ insurance company through its online quote tool and gives you the option of speaking to one of its licensed agents. So, if you purchase your home insurance through GEICO, the insurer that issues your policy will directly manage your policy, bills and claims.
GEICO Home Insurance Coverage
Regardless of which company writes your policy, purchasing homeowners insurance through GEICO ensure you get standard coverage such as:
- Personal Property
- Medical Payments
- Additional Living Expenses
You can also buy condo, mobile home and renters insurance from GEICO Insurance Agency’s partner companies. On top of standard coverage, you can add riders to extend your coverage, such as:
- Increased dwelling coverage extends coverage if repair costs exceed your home’s current market value.
- Water backup damage covers damage resulting from clogged sewer or sump pump overflowing.
- Appliance coverage helps cover expenses to repair or replace your appliances.
- Earthquake coverage.
- Identity theft restoration protects you against identity fraud, cyber-attacks and extortion.
Farmers Home Insurance
Farmers serves several million individual and household policies in all 50 states. Currently, Farmers is the fourth (4th) largest home insurance company in the country. It also offers auto, life, business, and pet insurance nationwide.
Farmers Home Insurance Coverage
Like GEICO, here are the standard coverage options at Farmers:
- Dwelling and Other Structures
- Personal Property
- Liability and Medical Protection
- Temporary Living Expenses
You can get three customizable packages, which feature all the above-listed coverage.
- Farmers’ Standard Package offers affordable basic coverage with the option to increase coverage on a few valuable items.
- The Enhanced Package offers higher policy limits and extras, like roof replacement coverage.
- The Premier Package has the highest policy limits and guaranteed replacement coverage.
There are endorsements you can add to your policy as well:
Personal article floaters to insure high-value items, such as fine jewelry, at higher limits with optional coverage,
Eco-rebuild gives you up to $25,000 of extra coverage to rebuild your home using eco-friendly materials.
Replacement cost coverage reimburses you for replacing a damaged item rather than reimbursing it for depreciation.
Identity theft covers you for losses if your identity is stolen.
You can also purchase flood insurance if you reside in a high-risk flood zone.
Home Insurance Cost
Homeowners insurance can cost $1,854 per year on average for a home insurance policy with $300,000 of dwelling coverage and $100,000 of liability coverage.
If you’re buying a home insurance policy from GEICO, you get the option to select your coverage levels and your deductible amount. These choices impact how much you pay from a GEICO partner, but since GEICO’ home insurance comes from its partners, it’s difficult to find an estimate.
In comparison, annual homeowners insurance from Farmers amounts to $1,455 per year, or $ just under $121 a month.
Both GEICO and Farmers offer good homeowners policies to customers, but Farmers take the win. Since GEICO doesn’t underwrite its own policies, it’s more challenging to rate them over Farmers. With cheap rates and an extensive list of offerings, Farmers is the better choice between the two.
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You can also get the chance to lower your rates if you have a smart home, are a non-smoker, and get discounts based on your career. You can also get more discounts through GEICO’s partner companies, but make sure you verify with each insurer that you’re getting all the discounts you qualify for.
While Farmers offers more home insurance discounts than GEICO, there may be other companies that offer more affordable rates. Compare quotes from both to determine which fits you best.
You can read more reviews and comparisons to see which company offers the best for the insurance you’re looking for, here.
Other Insurance Products
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GEICO vs. Farmers: The Bottom Line
GEICO gives additional perks to customers who also insure their car and offers an interactive website and app. Not underwriting its own home insurance policies, pairing customers with third-party providers and lack of discounts is a clear drawback. So, before you choose a policy, we recommend getting multiple quotes you can compare.
Farmers, on the other hand, offers customizable coverage, unique discounts and a reducing deductible. It also offers affordable rates, making it worth a closer look. Similarly, it’s ideal to compare multiple quotes and weigh your options.
Frequently Asked Questions
How long does GEICO take to process a claim?
GEICO states that it processes claims in as little as 48 hours. However, the size and nature of the claim can affect the processing time, regardless of the agency.
How do I find a Farmers insurance agent?
To find an agent, you can search by name or location on Farmers’ database.
What type of insurance does Farmers offer?
Farmers offers various insurance products, such as home and renters, earthquake, flood, business, auto, pet, umbrella and life insurance.
Why did my GEICO get more expensive?
If you change your vehicle, driving record or any kind of changes to your existing vehicles than, its sure to have your GEICO insurance to go up.
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