Allstate Renters Insurance Review of 2023
Allstate, which is famous for its brand recognition and its longevity, has one of the most comprehensive renters insurance in the industry.
It has an affordable price, it’s extremely easy to get an online quote, great customer service, and some convenient coverage options to protect your most valuable possessions.
Even if the apartment isn’t your own, getting renters insurance is a good idea to protect your personal property.
Allstate Renters Insurance Standard Coverage
Allstate’s basic renters insurance policy is similar to other insurers.
Renters insurance covers your personal belongings due to theft and natural disasters.
And if someone is injured on your property, renters insurance will pay for medical bills and any legal defense if that person decides to sue you.
In this way, renters insurance is not unlike homeowners insurance.
The major difference is that home insurance covers your entire home and its structure.
So if a fire or other natural disaster destroys your house, homeowners insurance will pay to rebuild it.
Renters insurance doesn’t cover the structure of your building; that’s covered by your landlord’s insurance.
How Much Does Allstate Renters Insurance Cost?
According to the Insurance Information Institute, the average cost of a renters insurance policy is $180 per year or $15 per month.
Allstate’s basic renters insurance policy, the cost is $120 per year or $10 per month.
Allstate’s average rate is based on a policy with $30,000 in personal property coverage, a $500 deductible, $100,000 in personal liability, and $1,000 in medical payments to others.
The average person could find even greater savings when bundling. Your renters insurance policy could be as low as $4/month just for bundling auto and renters together.
With its low price, Allstate is cheaper than the US average.
However, the cost of a policy is initially based on where you live and can vary widely.
It also depends on any coverages you buy.
If you buy a lot of coverage, your rate will go up.
What Are the Allstate Discounts?
Allstate’s low rate will go up because the basic renters policy doesn’t have enough protection for your personal property.
But Allstate offers some very good discounts that will ultimately drive your rate down.
Compared to most competitors, Allstate offers more discounts than others.
Here are some of the most popular discounts:
|Multi-Policy Discount||If you bundle renters and auto insurance from Allstate, you’ll get 10% off your auto policy and 25% off your renters policy.|
|Safe Home Discount||If you have safety features in your rental, like fire alarms, deadbolts, and fire extinguishers, you can save up to 15% on your policy. That’s because if your rental is safe, the less likely you are to make a claim.|
|Easy Pay Plan||If you set up automatic payments and link it to your bank account, you’ll save 5% on your policy.|
|Claim-free||If you have never filed a renters insurance claim, you can save up to 20% on your policy. That amount will increase each year you stay claim-free.|
|55 and Retired Discount||If you’re retired and are at least 55 years old, you can save 25% on your policy. Allstate is one of the only insurance providers that offer this tremendous discount.|
Allstate offers extra coverage at an additional price like most insurers and includes identity theft protection and umbrella coverage.
While some insurers don’t cover water damage, Allstate does, including extensive coverage for damage caused by sewer problems.
With Allstate, you can also buy riders for your policy that can cover the full cost of high-value items such as jewelry, which is normally capped at $1,500 per item in a basic policy.
Most Popular Coverages That Allstate Has to Offer:
Identity theft restoration
This coverage pays for expenses if your identity is stolen, including reimbursing you for credit card charges that you didn’t make. The policy also will monitor your credit report, pay for lost wages, as well as any legal fees.
Personal umbrella policy
This prevents policyholders from paying out-of-pocket for medical or legal bills if they’re found responsible for damages in certain situations.
The umbrella policy provides liability protection beyond the limits of regular policies.
Increased coverage on business property
If you keep business documents or other business-related materials (such as business samples) in your home, you can cover them with this add-on to keep them safe.
This add-on protects you when you’re in an accident with an at-fault driver who doesn’t have liability coverage or the liability coverage is too low. This coverage is only available in some states.
Scheduled personal property
While a standard policy typically covers a renter’s personal property, it will only pay up to a certain limit for some types of valuables.
Because personal property often has a minimum coverage value of $15,000 or $30,000, your expensive jewelry will probably not be covered in full.
But if you get your jewelry or high-priced items appraised, you can schedule them.
As an optional coverage, scheduled personal property means you can increase your coverage and cover more risks, such as accidental loss of your fur coat.
Or, if the fur coat is stolen, scheduling it may mean you’ll get the full cost to replace it.
Replacement Cost Coverage & Actual Cash Value Add-ons
Unfortunately, Allstate does not offer replacement costs in its basic policy. If you need this extra coverage, you can purchase it as an add-on,
Actual Cash Value (ACV)
If your property needs to be replaced due to damage from a covered peril, the basic policy will only reimburse you for the depreciated value, which is ACV.
For example, if a fire destroys your laptop and you purchased it four years ago for $1,000, ACV will only reimburse you $400 to replace it because it has depreciated over time.
Replacement Cost Value (RCV)
The cost of purchasing RCV will be higher than ACV, but if you suffer from a catastrophic loss, you’ll be glad that you chose RCV.
With RCV, your insurer will reimburse you at the value it would cost to replace your belongings using today’s prices and without depreciation.
Ultimately, RCV is better than ACV because it will pay in full for your damaged items and without depreciation factored in.
The key takeaway is that you can add as many endorsements or coverages as you want. But the best way to get your personal property covered in full is to get enough coverage close to or greater than your items' value.
If you want to risk it because you want to save money, you can purchase coverage with a limit that is lower than the value of what you own.
What are Covered Perils Included in Allstate’s Renters Policy?
A covered peril is a disaster that your renters insurance will pay for. So, if a covered peril damages or destroys your personal property or valuables, your insurer will reimburse you for them.
Allstate’s Covered Perils
- Wind damage (including hurricanes)
- Falling objects (including trees)
- Burst or frozen pipes
- Damage from accumulated ice or snow
- Volcanic eruptions
- Mold caused by another covered peril
Generally Excluded Perils
The most common generally excluded perils from a renters policy include:
- Bed bugs and other infestations
- Appliance failure caused by ordinary wear-and-tear
Purchasing endorsements or riders to your plan can add coverage for excluded perils.
|J.D. Power (out of 1,000)||837|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||2.05|
Pros and Cons of Allstate Renters Insurance
- One of the most affordable renters insurance in the US.
- Ability to file and track claims using mobile app.
- Offers a variety of discounts.
- Theft that happens in a school or office is covered.
- Malicious mischief, riots, and civil commotion are all covered.
- Policyholders can easily cancel by contacting an agent.
- Dorm rooms are covered.
- Different ways to customize your deductibles and coverages.
- Has website tool to help you calculate the value of your personal belongings.
- Offers umbrella coverage.
- Worldwide reach yet small-company feel with local agents.
- Get a quote easily online and customers can change or add coverage options and see the results in real-time.
- Replacement cost coverage not standard.
- Requires a higher premium for replacement cost coverage.
- Discounts and policies may not be eligible for certain states.
- According to customer reviews, customer service and coverage options are merely average.
- Average customer satisfaction for claims.
- Optional coverage for your yard and garden not available in every state.
- Dorm room coverage is not available to students who live near their parents’ or guardians’ homes.
- Not explicit about what events count as covered losses.
- Coverage amounts for personal property, loss of use, liability, and medical payments vary by state.
How Allstate Compares to Other Renters Insurance Providers
Allstate vs. State Farm: Which is Better?
We decided to compare both insurance titans to see which had better renters insurance policies.
We found that Allstate and State Farm have the cheapest renters insurance policies in the US compared to their competitors like Liberty Mutual and Progressive.
State Farm costs $11 per month, and Allstate costs $10 per month.
The insurance titans provide similar coverage features and options, and both enjoy strong financial health, according to AM Best.
But the two companies do have a few differences.
Allstate offers a few more renters insurance discounts than State Farm.
State Farm’s website doesn’t specify a discount amount off your renters policy. You need to ask a local agent for details, which can be time-consuming or waste your time.
And Allstate’s claims-free discount is better.
State Farm’s discount starts at 5%.
Allstate’s discount goes up to 20% and does not start at 5%.
And as for having a safe rental, Allstate lets you save up to 15% off, while State Farm allows you to save up to 10%.
And Allstate has a unique discount if you are older. If you are 55 years or older, you can save an enormous amount, which is 25% off your rate.
Discounts are important; without them, most insurers wouldn’t be affordable. So, every discount counts when you add them all up.
Alone, they may seem minuscule.
State Farm and Allstate are both good options for renters insurance coverage. With so many similarities between the two companies, it makes sense for you to get policy quotes from both, as well as other companies, to see which offers the best deal for you.
Read a full State Farm renters insurance review.
|J.D. Power (out of 1,000)||836|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||1.77|
Allstate vs. Nationwide: Which is Better?
Nationwide differs from Allstate because it offers three coverages that come standard in its policy and which Allstate doesn’t have.
Building Additions and Alterations
If you make small alterations to your rental, like changing the light fixtures or wallpapering your walls, this policy will cover damage to these changes if they are destroyed or damaged. A portion of your personal property amount is set aside for this coverage.
Credit Card Coverage
Nationwide will pay you for any unauthorized charges if your credit or debit card is stolen and used. The insurer also pays if you have forged checks.
Allstate has a similar policy. Its identity theft restoration is nearly the same as Nationwide’s credit card coverage.
Brand New Belongings
Like replacement cost coverage (RCV), Nationwide will pay you the depreciated value if your personal belongings get stolen, damaged, or destroyed during a covered event.
If it’s revealed that replacing the items costs more than the claim reimbursement, the insurer will cover the difference.
In addition, unlike Allstate, replacement coverage comes standard in Nationwide’s renters policy. To get this full savings coverage with Allstate and many of its competitors, you need to purchase it as an add-on. And RCV is not cheap.
But the major difference between the two insurers is that Nationwide has costly rates and is significantly higher than Allstate’s rate.
Allstate costs $10 per month. With a $500 deductible, Nationwide costs $21 per month. That’s a big difference between the two.
The Bottom Line
Nationwide may have more coverages that come standard with its basic policy, but Allstate has a wider reach than Nationwide.
In addition, Nationwide has fewer discounts than Allstate, which means you can’t really reduce your rate to offset Nationwide’s high premium.
Allstate may be best for you if you want affordability, more coverage, and discounts.
On the flip side, Nationwide may not be as good; its expansion of covered policies that come standard is its only selling point, and its high rates don’t make sense if you consider what the insurer offers.
|J.D. Power (out of 1,000)||859|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||0.04 (Very Low)|
Allstate vs. Travelers: Which is Better?
Travelers is one of the most well-established insurers in the US, having been founded in 1853. It offers some coverage options that you can add to the basic policy and a few discounts.
However, Allstate has the same coverages. Here are the most popular:
- Valuable Items Coverage
- Equipment Breakdown Coverage
- Water Backup Coverage
- Contents Replacement Cost
The few discounts Travelers offers—bundling, claims-free, and having safety or protective devices in your rental—are pretty standard. Allstate also has them all and many other useful coverage options.
Even the insurer’s multi-policy discount offers less than Allstate. You’ll get 10% off your auto policy if you bundle renters and auto from Allstate. If you do the same with Travelers, you’ll only qualify for a 5% discount.
Travelers even has a higher rate than Allstate. Its policy is advertised as being $13 per month, but on average, its cost is usually in the $16 per month range.
There’s no noticeable reason for Travelers to be that high when the company offers only a handful of discounts, which is a shame because you really have no opportunity to lower your premium.
There’s nothing unique in what Travelers offer; a decreasing deductible coverage may seem special, but Allstate has that same coverage under another name.
Plus, with Travelers, you need to call to get a quote in many states and can only buy a policy annually rather than every month. This means a higher upfront expense that is financially unhelpful.
The Bottom Line
While Travelers received the highest rating possible from AM Best (A++) and has more agents than Allstate (13,500) across the US., there’s no particular reason why its premium is high.
Meanwhile, Allstate’s coverage is customizable, allowing you to choose whether you want RCV or ACV or whether you want extra protection for other items in your home.
And the company’s discounts can help defray its already low cost.
If you are looking for more coverage options, affordability, and peace of mind knowing that your personal belongings are protected no matter what happens to your rental building, then you may want to go with Allstate.
|J.D. Power (out of 1,000)||801|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||3.88|