-Farmers Billing
-Life Insurance
-Auto Insurance
-Home Insurance

Prospective Agents >>READ THIS<<

Reserve Agent Program

Career Agent Program

Farmers Agent Stories

Farmers Agent Job Postings Dismantled
*NEW Entry*

Farmers Agent Gotchas

Agent Lawsuits

Agent News

Employee Stories

DOES YOUR DISTRICT MANAGER SUCK?

VOTE HERE!

The District Manager List and Rankings

Farmers Homeowners Policies

There have been several homeowners products sold by Farmers over the years and each state might not always have the same one! Here is what Farmers Insurance Group will do to make their product more flexable in terms of rates:

• Offer multiple policies for the same form HO3: In Arizona we had a product called the Special Form which was a base product with no extended replacement and a few other bells and whistles. A new product was introduced called the Protector Plus. The agent could write either form however not all homes qualified to be placed in the Protector Plus Program. The Special Form was more expensive most of the time and had less coverage.
• Introduce a new and similar form to change the rate structure: This has happened in many states where your current book of clients is already written with an adequate product. They are able to stay in that product as long as they dont get cancelled. You are no longer able to write the old product and the new one is more expensive! If a client had the old form and was cancelled and not able to be rewritten in the new form. They had the choice of taking a large increase in premium or take the highway and go somewhere else. This leaves the agent in a very tight spot. They stand to lose a valuable client and they are unable to rewrite them in available markets. Farmers does allow agents to write outside of the company as long as Farmers is unwilling to place it. In this case, Farmers will take it but they will charge a much greater premium than the client is willing to pay.
• Alter Credit Scoring Structure: This is a low down and dirty trick! Farmers has the option to alter its rate bracketing structure and grade more stringently on credit scoring at any time! This is a dirty trick because they do not have to refile their rates with the Department of Insurance to do so! Farmers also likes to put these types of changes in place very quitely without notifying agents.
• Alter replacement cost calculation: In spring of 2005 Farmers Insurance of Arizona introduced a new replacement cost method to calculate what Coverage A or Dwelling is for new home policies. What they didnt say about it is hidden inside of it was a drastic rate change. Agents had quotes already saved on the system for one price and the new quoting system came in at a much higher price, even though the Policy Form used was still the same and the Coverages A, B, C and D were all identical.

In general the Farmers Insurance Homeowners policy was actually one of the better products an agent could sell. It had the highest new business and renewal commission rates and it was an annual policy. If you are a Farmers Agent, you should concentrate on selling this product. They are fairly competitive on higher dwelling limits as well (in excess of $1.5 million). Also, clients that choose to have their Homeowners Insurance Paid through escrow can avoid the Irrational Farmers Insurance Billing System.