Allstate Homeowners Insurance Review of 2022
Allstate is one of the largest insurance companies in the nation.
The insurer was founded in 1931, and it now serves more than 16 million households across the country.
Allstate’s homeowners insurance is above average compared to other insurers of the same size.
We found that Allstate’s homeowners insurance is the best in the business for many things, such as its simple digital capabilities, its wide range of discount opportunities, exceptional customer satisfaction ratings, and a plethora of useful add-ons or additional coverages.
If you’re searching for a name-brand insurer that is widely recognized for its breadth of coverage options and discounts, Allstate might be a good fit.
How Much Does Allstate’s Homeowners Insurance Cost?
The average homeowners insurance in the US costs $1,390 per year for a policy with $250,000 in dwelling coverage.
Allstate costs on average $1,910 per year with $250,000 in dwelling coverage.
It’s more expensive than the US average.
In addition, if you compare rates with other insurers in the same league as Allstate, Allstate still comes out on top as having the highest premium.
Allstate Homeowners Insurance Options
Allstate offers three different options for you to buy homeowners insurance: the basic plan, the standard option, and the enhanced package.
Together, the tiered structures can make the process of choosing the coverage you need more personalized while keeping things simple.
It saves you from piecing together all the extra coverages you might need if you don’t have time to go at it alone.
In addition, each tier helps you decide on the cost you are willing to spend on a policy.
The Basic Plan
A basic homeowners insurance property protects both your home and the property within it.
If a fire burns down your home, your basic policy will pay to repair it.
It will even pay for your personal belongings inside your home if they got damaged.
It also covers medical bills if a guest comes over to your home and is injured, regardless of who’s at fault.
And if the guest ends up suing you, your policy will cover the lawsuit and your attorney.
The Standard Plan
Allstate’s standard plan includes everything found in a basic plan.
In addition, it also includes:
- Increased coverage limits for personal property, other structures on your property such as a shed or a detached garage, and a larger amount of coverage for loss of use.
- In addition, the standard plan has a lower per occurrence deductible and comes with $300,000 in liability coverage.
The Enhanced Package
This plan is the best overall because it includes everything in the standard plan and comes with $500,000 in liability coverage.
Not only does it provide increased coverage for structures, personal property, and loss of use, but it also features additional benefits that can lower your premium overall.
These benefits include:
|Claim Rateguard||This protects your rate from going up after a claim.|
|Claims-Free||For customers who have not made any recent claims and then switch to Allstate, you’ll have a lower premium.|
|Claims-Free Bonus||This plan gives policyholders 5% back every year they renew without having a claim.|
|Deductible Rewards||This takes $100 off a policyholder's deductible after sign-up and another $100 each year the policyholder stays claim-free, up to a maximum of $500.|
Allstate Extra Coverage & Add-Ons
These add-ons or endorsements make your basic homeowners insurance policy more comprehensive and are never included in an insurer’s basic policy.
You pay each time you add additional coverage, which will increase your policy rate.
This unique feature, rarely seen in other insurers, is for people who rent out their homes temporarily through Airbnb or a similar service.
The add-on provides theft coverage if a home-sharing guest steals or damages your personal property.
Earthquakes and Floods
The basic homeowners insurance policy never covers both earthquakes and floods.
For those who live near a fault line, it’s wise to get earthquake coverage as an added cost to your policy.
While hurricanes, heavy snow, and wind are covered perils, the flood damage they cause is not.
That’s because floods caused by water that originates outside your home are never covered in a basic policy.
If you live in an area susceptible to flooding, it’s best to purchase flood insurance with Allstate.
Allstate will help you replace your water-damaged items; without this additional insurance, you’ll end up paying out-of-pocket.
Identity Theft Restoration
Pays legal fees and other costs if your identity is stolen.
Water Backup Coverage
Covers damage caused by a backed-up drain or broken sump pump.
You can purchase an add-on to fully protect your valuable items like jewelry, artwork, musical instruments, and more.
Business Property Coverage
This offers higher limits for business-related items (like computers and home-office equipment) stored in your home.
Green Improvement Reimbursement
This add-on pays to replace damaged items with energy-efficient versions after a covered claim.
Yard and Garden Coverage
This policy raises your limits on items like trees, plants, and lawnmowers.
For personal property that is stolen or destroyed in a covered claim, replacement cost coverage will pay for brand-new items at today’s prices rather than the depreciated cost, otherwise known as actual cash value (ACV).
If there’s an item you don’t want to replace, Allstate will cover its depreciated value.
Website and Mobile App
When evaluating an insurance company, it’s always good to check out its website or mobile app.
Both should be easy to use and navigate.
In addition, these technical devices should allow you to manage most or all of your insurance needs, from getting a quote to adding coverage, and from filing claims to tracking them.
Allstate’s website and app are superior and allow you to do all these things and more, such as providing you with articles and videos about homeowners insurance and allowing you to view your policy discounts.
While some insurers will not allow you to get a quote online and make you have to contact an agent, Allstate’s online quote tool is one of the best in the business.
It allows homeowners to get a quote online in just minutes.
And if you don’t want to file a claim online, Allstate gives you several options. You can file a claim:
- Directly through your agent
- By calling its claims division
- Through its mobile app
You can then track your claims online, over the phone, or on the mobile app.
While Allstate’s homeowners policy is high, the company has plenty of discounts that can offset it.
Here are Allstate’s most popular discounts:
|Multi-Policy||If you bundle both home and auto insurance, you get 25% off your premium.|
|Responsible payment discount||If you pay on time every month, you’ll have a good payment history that qualifies you for a discount.|
|Welcome discount||If you are already covered by an insurer and switch to Allstate, you’ll get 10% off.|
|Loyalty Discount||Up to 10% off every year you continue to renew your homeowners insurance with Allstate.|
|Homebuyer discount||If you buy a newly constructed home or if you are a recent homebuyer, you’ll also save.|
|Easy Pay Plan||Up to 5% off when you set up autopay and link it to your checking account.|
|Protective device discount||If you install fire alarms, deadlocks, fire extinguishers, cameras, and other security measures in your home, you’ll save. Bonus points if you live in a safe neighborhood with a low crime rate and are near a fire hydrant or fire station.|
|Early signing discount||You can save up to 10% if you sign a new policy with Allstate at least a week before the expiration of your current policy.|
Allstate Homeowners Insurance Pros & Cons
- Three insurance plans to choose from.
- Bundling takes the highest percentage off your premium.
- Easy-to-use website.
- Well-rated mobile app.
- Many add-ons for more coverage.
- Several discounts can drive your premium down.
- Local agents readily available.
- Clear claims process.
- Optional digital identity tracking tool.
- Different ways to customize your deductibles and coverages.
- Ability to see if you’ve been part of any data breaches through its mobile app.
- Higher than average premiums.
- Personal property limit is lower than average in comparison to similar insurers.
- Additional Living Expenses (aka Loss of Use) are capped at a set percentage of the dwelling coverage rather than covering the total loss incurred.
- Because Allstate employs a range of people who act as agents, customer service may vary, including factors such as responsiveness.
- The online quoting system allows you to schedule coverage for special items such as jewelry or furs but won't allow you to see how much they are covered for if not scheduled.
- Online quotes not always available in some zip codes.
- Replacement cost coverage doesn’t come standard, unlike a few other insurers.
- If you hope to bundle, Allstate’s auto insurance has below-average customer satisfaction rankings.
|J.D. Power (out of 1,000)||815|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||2.05|
Where is Allstate’s Homeowners Insurance Available?
Allstate sells homeowners insurance in all 50 states and Washington, D.C..
How Allstate Compares to Other Homeowners Insurance Providers
Allstate vs. Lemonade: Which is Better?
- Accepted by all major lenders.
- No paperwork or phone calls are required.
Lemonade is young compared to its competitors. It was founded relatively recently, in 2015. The company provides home and renters insurance, term life insurance policies, as well as pet insurance and auto coverage.
The drawback is that Lemonade operates in only twenty-two states while Allstate has no exclusions.
Lemonade’s insurance is radically different in how it operates in comparison to Allstate.
Lemonade operates solely on technology to provide customers with all their insurance needs. This means you do business with Lemonade using the company’s well-regarded website and convenient app.
Allstate, meanwhile, also has a website and mobile app that compares well with Lemonade’s.
However, Allstate is far more convenient than Lemonade as its traditional setup has a customer service call center where you can speak to live agents.
But unlike Lemonade, which doesn’t employ live agents to keep costs down, Allstate’s digital presence isn’t meant to replace its live customer service and is just an added benefit for its policyholders.
The Bottom Line
For those who like the convenience of doing all their insurance needs online, Lemonade is for you.
But for those who prefer to talk to live and local reps but who like the fallback option to go online when time is of the essence, Allstate is the clear winner.
Read a full Lemonade home insurance review.
Allstate vs. Liberty Mutual: Which is Better?
Liberty Mutual is the fourth largest insurer in the U.S. Founded in 1912, the company has more than 45,000 employees and writes insurance policies in 29 countries.
Liberty is also the second-most expensive home insurance provider.
Despite its higher-than-average prices, Liberty has fewer coverage options than Allstate, so customers can’t make their standard policy more comprehensive.
However, Liberty has the same discounts that Allstate offers, without any noticeable exclusions.
Liberty Mutual's ratings by third-party reviewers were mixed and often below average. The bright spot is that AM Best gave the company an A rating.
Allstate received an A+, a higher rating, but in general, Allstate’s reviews were more positive than Liberty’s, making it a top choice for homeowners insurance.
Now here is where Liberty fared worse:
JD Power’s study for homeowners insurance and renters insurance gave Liberty Mutual a “below average” rating.
Liberty also has a much higher than average NAIC complaint index. This means Liberty received more complaints compared to insurers of the same size.
In comparison, the NAIC gave Allstate a 0 score, which meant that the insurer received fewer homeowners insurance complaints than its competitors.
The Bottom Line
While each insurer comes with pros and cons, Allstate has more positive ratings for customer service and claims satisfaction than Liberty.
As both offer the same number of coverages and have the same discounts, it’s hard to tell why Liberty Mutual has a higher premium than Allstate.
So, if you are considering a company’s affordability, then Liberty Mutual is probably not right for you and you should research and get a quote from Allstate.
Read a full Liberty Mutual home insurance review.
Allstate vs. State Farm: Which is Better?
Allstate and State Farm are direct competitors, mostly due to their size and their popularity.
The two insurers have many things in common.
In general, they offer the same features and coverages.
Both Allstate and State Farm get top ratings from AM Best, which means they both have excellent financial strength.
However, State Farm costs less than Allstate. That’s no surprise considering that Allstate is renowned for having high premiums for homeowners insurance.
For a $250,000 dwelling, the average annual home insurance cost for Allstate is $1,910 per year.
For State Farm, the rate is $1,835.
If you are searching for the most affordable home insurer, it may be wise to go with State Farm.
But if you look at the differences between each company, Allstate comes out on top for many reasons.
State Farm has only three endorsements, while Allstate has many.
The most unique ones include sports equipment insurance, green improvement, yard and garden coverage, musical instrument coverage, and deductible savings bank.
Plus, Allstate has more discounts than State Farm. For example. Allstate has many discounts that focus on being claims-free. State Farm doesn’t have even one.
The Bottom Line
If you are considering both State Farm and Allstate, you should choose Allstate for its breadth of coverages and discounts. You may end up paying more, but Allstate protects your home and assets more than State Farm does.