Farmers Short-Term Rental Insurance Review [2024]

This article dives into the details of Farmers' short-term rental insurance, exploring its features, pricing, and the various factors that affect its costs. 

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Are you searching for the perfect short-term rental insurance? 

Farmers Insurance might have the solution you need. Known for its comprehensive coverage options and flexible bundling discounts, Farmers stands out in the competitive insurance landscape. 

But how does it really measure up to your specific vacation rental needs? 

This article dives into the details of Farmers’ short-term rental insurance, exploring its features, pricing, and the various factors that affect its costs. 

By analyzing the pros and cons, we aim to equip you with the essential information to decide if Farmers Insurance is the ideal choice for your property.

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What is Farmers Short-Term Rental Insurance?

Farmers Insurance Group, a reputable name in the insurance sector, has been operational since 1928. It was founded in California by John C. Tyler and Thomas E. Leavey. Over the years, the company has grown significantly and is now headquartered in Los Angeles. 

Farmers Short-Term Rental Insurance

Today, Farmers Insurance Group encompasses approximately 45 distinct companies and employs around 21,000 individuals. Furthermore, it boasts a network of about 48,000 exclusive and independent agents.

The organization offers a wide range of insurance policies catering to various needs, including homes, vehicles, and businesses, across all 50 states in the United States. 

A testament to its financial robustness and reliability is its ‘A’ rating from AM Best, a notable credit rating agency specializing in the insurance industry. This rating reflects Farmers Insurance Group’s strong financial stability and its ability to meet policyholder obligations.

Farmers Key Features

Let’s break down what makes their policy stand out.

Bundling Discounts Available

One of the key features that make Farmers’ short-term rental insurance policy stand out is the availability of bundling discounts. Customers who purchase multiple insurance policies from Farmers are eligible for discounts. 

This not only makes managing insurance policies more convenient but also more cost-effective. Interestingly, unlike some insurers, Farmers does not mandate that your primary residence be insured with them to qualify for vacation or rental property insurance. 

This flexibility allows property owners more freedom in choosing their insurance solutions without feeling pressured to switch all their policies to Farmers.

Excellent Customer Service Reputation

Farmers Insurance is renowned for its excellent customer service. The company prides itself on being readily available to answer any queries related to policy details. 

This accessibility is crucial, especially in the insurance sector, where clients often seek immediate and clear responses to their concerns. The ability to easily contact and receive support from the insurer adds a layer of trust and reliability to their service offerings.

Rewards for Long-Term Policyholders

Another notable aspect of Farmers’ insurance policy is the reward system for long-term policyholders, particularly those with a clean claims history. 

Farmers acknowledges and appreciates responsible property ownership and claim-free histories in a couple of significant ways:

  • Claim Forgiveness: Farmers offers claim forgiveness for long-term policyholders. If a policyholder, who hasn’t filed a claim in five years, needs to file one, this feature ensures that they are not penalized for this isolated incident.
  • Decreasing Deductibles: In an innovative move, Farmers reduces the deductibles for policyholders who do not make any claims over a period. This decrease in deductibles occurs without an accompanying increase in the premium.

Farmers Coverage

Farmers Insurance offers a comprehensive range of coverage options designed to protect various aspects of your property and liability concerns. 

Here’s a breakdown of the key coverage components:

1. Dwelling Coverage

This is a fundamental part of Farmers’ insurance policy, providing financial protection against damage to the physical structure of your home. It covers repairs needed due to events such as:

  • Household fires, which can cause significant damage to the structure and integrity of the property.
  • Lightning strikes, which can lead to electrical damage and structural harm.
  • Storms or high winds, which are common causes of external and sometimes internal damage to homes.

The dwelling coverage ensures that in the event of such incidents, the financial burden of repairs does not fall solely on the homeowner.

2. Personal Property Coverage

Personal property coverage is another crucial component of Farmers’ insurance policy. It addresses the need to protect the contents of your home, including:

  • Furniture, which can be costly to replace.
  • Electronics, often essential in modern homes and high in value.
  • Clothes and other personal belongings that can accumulate significant value over time.

This coverage is particularly valuable in situations where belongings are damaged, destroyed, or stolen, offering a safety net to replace these items without incurring a substantial financial loss.

3. Personal Liability Protection

Personal liability protection is a key aspect of the policy that covers legal and medical expenses in specific scenarios:

  • If someone is injured on your property and you are found legally responsible, this coverage helps pay for their medical expenses.
  • In cases where someone’s personal property is damaged due to your fault, this coverage can help pay for the legal costs or damages.

This coverage is vital in safeguarding the policyholder from the financial repercussions of accidents or incidents that occur on their property.

4. Coverage for Additional Risks

While standard policies for second homes typically cover a range of incidents, they do not usually include damage from floods or earthquakes. 

However, Farmers recognizes that certain areas are more prone to these specific risks and may offer special coverage options for them. This means that if your property is located in an area where floods or earthquakes are common, you can potentially obtain additional coverage to protect against these specific risks.


Farmers Insurance offers competitive pricing for their short-term rental insurance policies, typically ranging between $1,000 and $3,000. 

This pricing structure is in line with the market rates of their competitors. However, it’s important to note that there are various factors that can influence the final cost of the insurance premium. 

These factors include:

1. Location

The geographical location of a property plays a significant role in determining insurance costs. Homes situated in areas prone to extreme weather conditions, such as blizzards, tornadoes, or hurricanes, usually have higher insurance premiums.

This is due to the increased risk of damage associated with such weather events.

2. Usage and Occupancy

How a property is used, and the frequency of occupancy also affect insurance costs. For instance:

  • Properties used as vacation homes or rentals might require additional insurance coverage, which can increase the premium.
  • If a second home is occupied only for a few months a year, the risks of burglary, vandalism, and fire are generally higher, impacting the premium cost.

3. Age and Condition of the Property

The age and the current condition of the home are also crucial factors. Older homes, especially those that are not well-maintained, can lead to higher premiums due to the increased risk of incidents like plumbing failures or electrical issues.

4. Property Type and Amenities

The nature of the property and its amenities significantly influence the insurance cost. For example:

  • A large, modern home situated on a lake will typically have a higher insurance cost compared to a small, rustic cabin in the woods.
  • Additional features like a swimming pool can increase insurance costs due to the added liability and maintenance risks.
  • On the other hand, properties within a homeowners association (HOA) might benefit from lower premiums due to perceived better security and maintenance standards.

5. Bundling Insurance Policies

Farmers Insurance offers opportunities for discounts through bundling. When multiple policies are purchased from Farmers, such as combining home and auto insurance, customers can avail themselves of discounts that effectively lower the overall insurance costs.


Finding the right insurance for your short-term rental property can be challenging, but there are several notable alternatives to Farmers that deserve attention.

Whether you’re listing your property on Airbnb or VRBO, here’s a closer look at some top insurance providers that offer specialized coverage for vacation rentals.

Proper Insurance

Proper Insurance stands out in the insurance market, backed by the reputable Lloyds of London and recommended by Airbnb and VRBO.

Proper Insurance - best insurance for vacation rentals

Specializing in short-term rentals, Proper Insurance has developed over 50,000 policies across the United States, covering a wide range of property types from vacation homes to apartments.

Their policies are customized for short-term rental properties, offering comprehensive coverage that includes host liability, amenity liability (including bikes, kayaks, and hot tubs), theft, vandalism, and even bed bugs and squatters.

For those seeking extensive coverage, Proper Insurance provides some of the most detailed policies available. Getting a free quote is straightforward and quick, taking only about 5 minutes.

For more information, visit Proper Insurance’s website or read our in-depth review.


CBIZ has been a leading provider of vacation rental property insurance since 2002, earning the distinction of being the largest insurer of short-term vacation rental properties in the United States.

CBIZ vacation rental home page

Operating nationwide, CBIZ’s experience and coverage are comprehensive. They work with top-rated carriers to offer a variety of property insurance coverages specifically designed to address the challenges and risks of owning a vacation rental property.

CBIZ is known for its clear communication and personalized customer service, ensuring property owners understand their coverage options and receive protection that secures both their property and income. For more details on CBIZ’s offerings, visit their website.


Allstate’s HostAdvantage is a popular option for Airbnb and Vrbo property owners looking to extend their homeowner’s insurance to cover short-term rentals.

As a well-established insurance company, Allstate offers an extension that provides an alternative for those previously considering services like Slice.

Check out our in-depth review of what Allstate HostAdvantage has to offer.


Overall, Farmers Insurance Group offers a comprehensive and competitive short-term rental insurance policy with a range of coverage options, including dwelling, personal property, and liability protection. 

The policy stands out for its flexible bundling discounts, exceptional customer service, and rewards for long-term, claim-free policyholders. 

With prices typically ranging between $1,000 and $3,000 and various factors influencing the cost, it caters to a diverse range of needs and scenarios.

For those looking to insure their vacation or rental properties, Farmers provides a reliable and adaptable insurance solution.

Farmers Short Term Rental Insurance Pros

  • Flexible bundling discounts
  • Exceptional customer service
  • Rewards for claim-free policyholders
  • Comprehensive coverage
  • No requirement for primary residence insurance

Farmers Short Term Rental Insurance Cons

  • Pricing variability
  • Limited flood and earthquake coverage
  • Age and condition of property impact
  • Occupancy affects premiums

For those considering Farmers for their vacation rental insurance needs, it’s worth noting the balance of comprehensive coverage, customer service excellence, and reward incentives against the potential for higher costs due to specific property characteristics. 

To explore more insurance options and find a policy that best fits your needs, get a quote from Proper Insurance or check out our vacation rental insurance company recommendations.

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