Safeco Home Insurance Review
Safeco offers average coverage and a few add-on policies, but its customer service is rated below some competitors. Safeco delivers on coverage, but its customer service is lacking, and that could cause problems when you need to file a claim.
Safeco is backed by Liberty Mutual and offers comprehensive homeowners insurance coverage through its nationwide network of independent agents. It offers plenty of optional coverages, like equipment breakdown coverage and endorsements for your valuable jewelry and art, so you can customize your policy as you see fit. Safeco will also pay the full replacement cost for your personal property without factoring in depreciation. If you have your auto insurance through Safeco too, you will only have to pay a single deductible if your car and home are damaged in the same accident.
In terms of customer service, Safeco falls behind, scoring poorly in customer satisfaction surveys and had several recent lawsuits. Customers have accused Safeco of refusing to pay out claims, leaving the homeowners to pay for most of the damages. Safeco alleges the damages were caused by pre-existing conditions for which it was not responsible. It’s unlikely that this will happen to you, but if it concerns you, you may want to explore other options.
To determine the average price of home insurance from Safeco, we got a sample quote for a 30-year-old married homeowner living in Cincinnati, Ohio. Our estimated rate was $1,030 per year. That price includes basic coverage only.
Like all insurance, homeowners insurance rates are impossible to predict because they’re so personalized. Companies consider many factors, including your home’s size and location and your creditworthiness, but providers weigh these factors differently.
Rates also vary depending on the level of coverage you’re getting. Most homeowners insurance policies protect against the following perils:
- Damage caused by aircraft
- Damage caused by vehicles
- Fire or lightning
- Riot or civil commotion
- Smoke damage
- Volcanic eruption
- Windstorm or hail
Certain natural disasters, like fires and earthquakes, aren’t covered by a traditional policy. If you live in an area prone to these events, you’ll have to purchase extra coverage. If you have a lot of valuable items in your home, like art or jewelry, you may want to consider policy endorsements designed to protect these items.
If I’m on a budget, should I consider Safeco Home Insurance?
Homeowners insurance can be pricey. Based on our sample quote, it would seem like Safeco is a good choice for homeowners on a budget. However, you’ll need to get a personalized quote to determine what your rate will be. You’ll pay more for add-on policies or if you choose to raise your coverage limits
Safeco sells its insurance through a network of independent agents around the country, so it’s a good choice if you prefer dealing with someone face-to-face. However, customers don’t seem that impressed with the service they’ve received. In J.D. Power’s 2019 U.S. Home Insurance Study, Safeco received a two-star rating, indicating that customers have some issues with the company.
A few customers have endured long legal battles in getting Safeco to pay out claims. The company reportedly waited 57 days to inspect a home with house-eating mold, then only offered to pay five percent of the damages. In another case, Safeco argued that a house fire was the result of a pre-existing condition and only paid about a quarter of the repair cost.
This is not to say that you will face similar issues if you need to file a claim, but this is something to be aware of before you purchase a Safeco policy.
Safeco covers all the basic home coverages, like dwelling, personal property and liability insurance. Additionally, all policies cover temporary housing. If your home is damaged and you have to rent a place until the repairs are finished, Safeco will cover your living expenses for up to two years.
Additionally, the company offers a few endorsements that can give you added protection for things like valuables. We’ll talk more about those policies later on.
Deals, discounts and add-ons
In this section, we’ll look at the discounts and add-on policies that Safeco offers.
Safeco isn’t known for offering the best discounts. When compared to competitors, like Allstate or Geico, Safeco offers few ways to save. You can get a discount by:
- Bundling your home and auto policy
- Purchasing multiple policies
- Insuring a home that is less than 10 years old
- Raising your deductible
- Paying your annual premium in full
Although Safeco lacks many popular discounts, the company does offer good add-on policies. Here are the endorsements that you can purchase through Safeco:
- Equipment breakdown coverage: This coverage functions like a warranty on your appliances, paying for unexpected breakdowns not resulting from corrosion or normal wear and tear. If your appliance breaks, Safeco will replace it with a comparable Energy Star model.
- Extra coverage for your valuables: If you own expensive jewelry, art or antiques, you can purchase extra protection for these items. You and Safeco settle on a price for each of the articles. If that item is stolen or damaged, you’ll be refunded the agreed-upon amount without paying a deductible.
- Identity theft coverage: Safeco’s identity recovery coverage assists you with the process and expenses of restoring your identity. This includes lost wages and child and elderly care up to $5,000. You also get access to a dedicated case manager who can assist you in undoing the damage caused by an identity thief.
- Personal property replacement: Most insurance companies only pay the value of your personal property, factoring in depreciation. That price is likely not going to be the same as the cost of buying a new one today. Safeco’s personal property replacement coverage will pay you the full cost of replacing your items up to your policy limit, even if that cost is more than what your personal property was worth.
Safeco home insurance overview
|Price||Varies by location, home and other factors|
|Best for|| |
People who want flexible policies they can customize to their needs
|Not for|| |
People who place a high value on customer service
|States served|| |
|AM Best rating||A|
|Standout features|| Single deductible for home and auto insurance|
Equipment breakdown coverage
Full replacement cost for damaged personal property
Up to $25,000 of identity theft coverage
Overall, Safeco has good financial strength ratings. That means the company will likely have sufficient funds to repay homeowners for any claims they file. Safeco has an A rating from AM Best, an A2 rating from Moody’s and an A- rating from S&P. While those ratings are slightly below some competitors, they still indicate excellent financial strength.
Safeco home insurance is available in 46 states. Some of its competitors offer nationwide coverage, but Safeco’s coverage area is strong. If you have Safeco insurance and move to a different state, there’s a good chance you can keep your Safeco insurance for your new home.
Safeco was founded in 1923 and has sold insurance policies for nearly 100 years. In 2008, Safeco was acquired by Liberty Mutual.
- Allstate: Allstate offers solid coverage and a decent selection of riders, so you can customize your policy to suit your needs. It also offers a unique RateGuard option, which works like accident forgiveness on your home. You won’t have to worry about your rates going up following your first claim. Allstate has a good selection of homeowners discounts, but despite this, its rates are typically not as affordable as those offered by the other companies on this list.
- Geico: Geico doesn’t sell its own insurance policies. Instead, it’ll pair you up with one of its partner lenders in your area. Customers appear to be happy with this arrangement, though, since Geico scored above average in the J.D. Power customer satisfaction survey. However, it’s a good idea to investigate the company that will underwrite your policy before you commit.
- Progressive: Like Geico, Progressive doesn’t sell its own homeowners policies. When you get a homeowners quote through Progressive, you’re paired with one of its partner insurers. Progressive customers appear less satisfied than Geico customers with the service they receive, though. It received an average rating in the J.D. Power survey.
- State Farm: State Farm is known for offering some of the best customer service in the industry. It doesn’t offer much in the way of homeowners discounts and its rates may not be quite as low as what you can get through Progressive or Geico, but its selection of policy endorsements makes it a good choice for those who want a flexible insurance policy they can customize to their needs.
Safeco offers flexible coverage you can customize to suit your needs, but the provider doesn’t live up to its claims in terms of customer service. If this concerns you, you may be better off going with a company known for customer service, like State Farm.