Farmers Insurance vs State Farm

Verdict

Farmers Insurance and State Farm both put a local exclusive agent between you and the company, and both are owned by their policyholders. State Farm is the larger, ranked #1 among U.S. homeowners groups for 2025 ($35.27 billion in premiums, 18.67% of the national market, per NAIC data), against Farmers at #5 ($10.31 billion, 5.46%). Farmers is a Western insurer and State Farm is everywhere: it was the largest home writer in 41 states, while Farmers sat in the top 10 in 38 and ranked second in California, Nevada, New Mexico, Utah and Wyoming.

Where each is writing new business is the sharpest difference. Farmers removed its monthly cap on new California homeowners policies on November 21, 2025, and a rating plan approved in May 2026 (an average 1.5% increase, effective September 15, 2026) pledged marketing to at least 300,000 policyholders in wildfire-distressed areas. State Farm General has taken no new California homeowners applications since May 27, 2023; it filed on September 16, 2026 to accept homes with IBHS Wildfire Prepared Home designations, and the state said on September 18 it was not yet open. The pattern reverses in Florida, where Farmers discontinued Farmers-branded home policies in 2023 while State Farm ranked 4th in the state in 2025.

On coverage, Farmers offers guaranteed replacement cost as an option, which pays the full cost to rebuild even above the dwelling limit, and it sells matching coverage and residence glass. Availability varies by state, so confirm it on the quote. State Farm builds inflation coverage into the dwelling limit and offers sewer or drain backup and earthquake as add-ons. We did not find a roof payment schedule described on either company's coverage pages, so ask how a roof loss is settled. Financial strength: Farmers' exchanges carry A (Excellent) from AM Best, stable outlook, affirmed August 2025. State Farm's main companies are A+ (Superior) from AM Best (November 2025, down from A++), though State Farm General is B (Fair).

Choose Farmers if

• You live in California, the Mountain West or the Northwest and want to apply for a new homeowners policy from a company that is writing them.
• You want the option of guaranteed replacement cost, matching coverage or residence glass.
• You want a large home-auto bundle: in California Farmers' discount rises to 22% from 15% on its Smart Plan Home and Next Generation Home policies from September 15, 2026.

Choose State Farm if

• You live in Florida, or anywhere in the East or Southeast where Farmers is a smaller presence.
• You want an A+ (Superior) AM Best group rating from the country's largest home insurer, and agents in nearly every state.
• You can use its credits: Class 4 impact-resistant shingles (26 states), wind mitigation, or wildfire mitigation in California, Colorado and Oregon.
• You are outside California and Massachusetts, the two places State Farm limits new homeowners business.

Key differences

Before you decide

Quote the same Coverage A, deductibles and endorsements, ask each agent whether new business is open at your address, and compare the replacement cost options in writing. Because both agents represent one company, pricing both takes two separate conversations. extended and guaranteed replacement cost coverage explains the difference between a limit increase and a guarantee, and california's home insurance crisis covers why availability is so uneven there. See also how to compare homeowners insurance quotes and captive agents, independent agents and direct insurers.