Farmers homeowners insurance review: Is it worth the higher premiums?

There are few things more devastating than losses and damage to your home — both emotionally and financially. Having the right homeowners insurance policy from a company you trust can go a long way toward protecting your wallet and offering peace of mind.

Farmers homeowners insurance is known for its highly-ranked customer service and customizable policies. CNBC Select reviews Farmers and the features and discounts it offers, so you can get an idea of how it compares to other insurers and whether it's the best fit for you.

Farmers homeowners insurance is available in 40 states and can be an excellent choice if you're looking for extended coverage that can provide extra protection.

In most states, a standard policy includes four types of coverage:

• Dwelling coverage can offer a payout for repairs or rebuilding your home.
• Personal property insurance can help you pay for the costs of replacing or fixing items inside your home.
• Liability coverage provides financial protection if you're at fault for an injury or damage to someone's property that occurs in your home.
• Additional living expenses coverage can pay for costs like food and rent if you're living elsewhere while your home is being repaired.

Beyond that, Farmers offers plenty of options to customize your coverage. While plans and available additional coverages vary by state, here are some examples:

• Extended replacement cost coverage can pay up to 25% above your policy's limit to rebuild your home after a covered loss.
• The guaranteed replacement cost option covers the full cost of home repairs for covered losses, even if it exceeds the policy limits.
• The building ordinance or law option adds coverage for upgrades required by law to comply with building codes.
• Home sharing coverage offers protection if you're renting out a part or all of your home through a home-sharing business.
• FORTIFIED Roof^TM Upgrade covers rebuilding your roof to enhanced standards to help it withstand severe storms.
• Sewer and drain water damage covers damage caused by water backing up through sumps and drains.
• Emergency mortgage assistance can provide three months of mortgage payments (up to $10,000) when you're rebuilding your home while it's uninhabitable after a covered loss.

On top of that, you can get separate policies for flood insurance, earthquake insurance and umbrella insurance. Besides a wide range of policies, Farmers also boasts high customer satisfaction rankings and few complaints with the National Association of Insurance Commissioners.

Farmers provides a convenient app, available for both Android and iOS, where policyholders can find their policy documents, pay bills and report claims, among other features. Users can also manage claims via the company's website. The website also provides educational content featuring stories from real people to help you plan and prepare for the issues that homeowners sometimes deal with.

To get in touch with Farmers, policyholders can call or text customer service. Additionally, the insurer's website features a chatbot and live chat available upon logging in.

Farmers isn't likely to be your most affordable option when it comes to homeowners insurance. Still, the company offers plenty of ways to save on coverage, including discounts for:

• Belonging to a certain business, professional association or occupational group
• Bundling your home insurance with another qualifying policy from Farmers, such as auto or life insurance
• Enrolling in ePolicy to receive all policy documents and bills virtually
• Having a roof built with materials approved by Underwriters Laboratories (UL)
• Insuring a home that's less than 14 years old
• Installing protective devices in your home, such as a fire alarm, security system or internal sprinklers
• Taking home safety measures, such as fortifying your home's windows, walls, roof or foundation against natural disasters and setting up automatic gas or water shutoffs
• Having green certifications, such as LEED, EPA and ENERGY STAR
• Not filing a claim for three consecutive years
• Installing a smart home system that allows for remote control or monitoring (note that this discount isn't available in all states and can't be combined with the home safety or green certifications discount)
• Converting a Farmers renters insurance policy that's at least one year old to homeowners insurance after purchasing a home
• Paying for a policy in full or in two payments, or signing up for automatic monthly payments
• Always paying the bills on time

On top of that, you can potentially qualify for certain home insurance discounts specific to your state.

As one of the biggest insurance companies in the U.S. by market share, Farmers Insurance provides multiple types of coverage — and its offers can be competitive. For instance, CNBC Select picked Farmers Auto Insurance as the best option for discounts. You can use Farmers to insure many kinds of vehicles, from cars to boats and RVs and more.

Additionally, the company sells insurance for condos, vacation homes, vacant homes and mobile homes, as well as renters insurance. You can also purchase life insurance, pet insurance or coverage for various aspects of your business.

With so much to choose from, it can be easy to bundle with Farmers. However, don't assume you always get the best deal by sticking with one insurance provider. Compare multiple quotes to determine what works for you and your budget.

While Farmers Insurance can be a great choice for keeping your home covered, you'll want to consider how it stacks up against the competition.

For starters, Farmers isn't available in all states. If your home is in Alaska, Delaware, Florida, Hawaii, Maine, New Hampshire, Rhode Island, South Carolina, Vermont or West Virginia, you'll have to go with a different provider.

Another thing to keep in mind is the premiums. If you're looking for the cheapest option, Farmers is most likely not your best bet. To compare, an analysis by Bankrate found that an average annual rate for $250,000 dwelling coverage from Farmers is $1,664 (based on 40-year-old male and female homeowners with a clean claim history and good credit). For the same coverage, Nationwide charges $1,153, and Erie charges $957.

Plus, you want to consider your specific situation when choosing your insurer. For example, if you have significant high-value items, such as fine art or antiques, Chubb can be a good choice. Its Masterpiece policy has coverage for these types of items built-in by default. Or, if you're a veteran or military member, USAA can provide additional benefits like coverage for the cost of uniforms and equipment, among others.

Farmers Insurance can be a good option for your home coverage if you're willing to pay more for highly customizable policies and a great customer service experience. The provider also offers plenty of discounts that can help lower those higher premiums. Still, make sure to research other homeowners insurance companies and compare multiple policy options (and their costs) to get coverage that works best for you.

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