Business Insider compared Allstate homeowners insurance to the best homeowners insurance companies and found it to be a poor choice for most homeowners due to its high price and claims handling. However, it may be a good option for those with expensive properties and landlords looking to insure their properties.
Allstate Homeowners Insurance Pros and Cons
Allstate Homeowners Insurance Pros
- Online quotes available
- Established company with national presence
- Save up to 25% by bundling your home and auto insurance
Provider Homeowners Insurance Cons
- Expensive insurance premiums
- Lots of negative customer feedback
- Lower-than-average scores for claims and customer satisfaction with JD Power
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Allstate offers many of the most important personal insurance products, including homeowners insurance. It leads the market in discounts, but its base rates may not be as competitive as State Farm and other big competitors.
- Offers HostAdvantage which is protection for your belongings while renting out your home.
- Offers flood insurance.
- Offers coverage during identity theft.
- You can get discounts for installing protective devices, and being claim free.
Allstate Homeowners Insurance Overview
As the nation's second-largest homeowners insurance provider, Allstate has a solid foundation with a reliable record of selling and servicing policies. Many homeowners can benefit from a policy with this company, especially if you value a large selection of coverage options.
But with its steep rates, not everyone can afford a policy. That said, if you’re a high-net-worth individual, landlord, or operate a business from your home, you might consider Allstate. It offers a range of coverages tailored to your specific needs, including identity restoration, business use, and landlord insurance.
Allstate Homeowners Insurance Plans and Coverage
Allstate's standard homeowners policies are competitive and comparable to other large insurance providers. You’ll find four types of home insurance with Allstate, based on property type: homeowners, renters, condominiums, and mobile/manufactured homes.
Allstate Homeowners Insurance HO-3
If you own a standard single-family home, a standard homeowners insurance policy may offer the right amount of protection for your needs. You’ll find the following coverages included in an Allstate HO-3 policy:
- Dwelling: This coverage protects the majority of the home, including its structure, walls, roof, and other attached structures, such as garages. Covered losses may include fires, vandalism, and other common hazards. Additional coverage can be purchased for water backup and other related risks with the appropriate riders. The exact coverage will vary based on your policy.
- Other structures: Sheds, unattached garages, carports, and other detached structures are covered under this part of your insurance. Your coverage amount is based on the replacement value of your home.
- Liability: If an injury occurs on your property or there's damage to someone else's property, liability coverage can help pay your legal costs. Examples could include a dog bite or a guest falling through a broken stair. If you want even higher coverage, Allstate offers personal umbrella insurance for an additional fee.
- Personal property: This coverage protects items in your home and garage. Allstate offers two types of coverage in this category: replacement cost coverage and actual cash value.
- Guest medical expenses: If a guest is injured on your property and requires medical attention, this coverage will cover the costs. Covered costs include x-rays, overnight hospital stays, ambulance rides, and more.
- Additional living expenses: This coverage provides extra funds if your home becomes uninhabitable and your expenses increase. Homeowners can use it for hotel expenses or other living costs until the property is usable.
Renters Insurance (HO-4)
Allstate renters insurance covers your personal property, liability, additional living expenses, and guest medical expenses. Since your landlord’s insurance should cover the cost of repairs to the building, you don’t need dwelling insurance.
Allstate also offers additional coverages, including scheduled personal property, identity theft restoration, personal umbrella, and flood insurance.
Condo Insurance (HO-6)
Allstate condo insurance covers your personal property, liability, additional living expenses, and guest medical expenses. It also offers building property protection. This coverage protects your large furniture and appliances, if they’re not covered by your condo association’s master policy.
To increase your protection, Allstate offers a range of add-ons, including water backup and building and law ordinance coverage. It also provides unique coverages, like loss assessment coverage (covers shared condo repair costs) and green home improvement reimbursement.
Mobile Home Insurance (HO-7)
Allstate offers dwelling, personal property, other structures, liability, and guest medical expenses for your mobile or manufactured home. You can also include riders such as scheduled personal property coverage and temporary collision coverage while your home is in transit. Allstate may also allow you to include optional coverages found in their home insurance plan to your mobile home insurance policy.
Additional Coverage Options Offered by Provider Homeowners Insurance
Allstate offers many coverage riders to enhance your homeowners coverage. If you want extra coverage, Allstate offers the following optional riders.
- Scheduled personal property: Often known as "valuable personal property" coverage, this coverage protects high-value items on your property. Jewelry, watches, antiques, or collectibles are typical examples. In some cases, Allstate may request an appraisal, or you may want to get one to simplify the process in case of a claim.
- Identity theft restoration: This coverage helps pay for legal fees and other associated costs if you experience identity theft.
- Water backup: Coverage for certain types of water damage is included in Allstate's standard homeowners policy. But if you want drain backup or broken pump coverage, you’ll need to add a water backup rider. This is one of the more affordable options for most homeowners, but it could save you thousands after a burst pipe or other unexpected event.
- Business property: If you're a business owner, you can increase coverage for business items in your home, including inventory.
- Landlord insurance: This is a separate type of policy for landlords. It covers repairs, rebuilding, and lost rental income due to unexpected damages, including natural disasters and accidental damage caused by one of your tenants.
- Sports equipment: Similar to scheduled personal property coverage, this rider enhances coverage for high-value sports gear. You might choose to include ski equipment or racing attire.
- Green improvement reimbursement: In a claim involving appliances or other eligible items, this coverage covers appliance replacement and other parts of your home with energy-efficient alternatives.
- Flood insurance: If your home is in an affected flood zone, you can add flood insurance with Allstate through the National Flood Insurance Program (NFIP). Allstate may manage the policy, but the NFIP will pay any claims.
- Yard and garden: If you have a large backyard or expensive landscaping, add this rider for additional coverage. It increases the limit for replacement costs for specialty plants, rock features, and other costly landscaping work.
- Electronic data recovery: If you lose or break your computer due to a covered event, this rider covers the cost of recovering personal computer data, including photos, texts, or videos.
- Musical instruments: Musicians with expensive instruments, such as guitars, pianos, or drums, may purchase this rider to protect them.
Allstate Homeowners Insurance Cost
Like all homeowners insurance policies, Allstate homeowners insurance costs will vary based on factors like your home's location, age, type, and your personal profile, including your credit and claims history.
We requested a quote for a $400,000 home in Albuquerque, New Mexico, built in 2018, owned by a 38-year-old with good credit. New Mexico was chosen because its average insurance premium is closest to the national average. We chose a 38-year-old because it is the average age of first-time homeowners.
The cost of Allstate homeowners insurance for this profile was $248 per month or $2,940 per year, which is on the higher end.
Allstate Homeowners Insurance Discounts
While Allstate homeowners insurance may be expensive for some, several of its numerous discounts can help you earn more affordable rates on your policy. Here are the types of Allstate discounts you can qualify for:
- Multi-policy: Save up to 25% by bundling your home and auto insurance policies.
- Responsible payer: Get a discount for having a good payment history.
- Claims-free: If you switch to Allstate without a recent home insurance claim, you may qualify for this discount.
- Welcome and loyalty discount: Enjoy immediate savings when you switch to Allstate. You also save money every year you remain a customer.
- Home buyer: Get a discount if you’re a new homebuyer or your home is newly built.
- Autopay: Get extra savings by putting your policy on autopay.
- Protective device: If you have fire or theft protection systems, you may be eligible for a discount on your policy.
- Early signing: Score lower rates by signing up seven or more days before your policy starts.
- Windstorm mitigation: Florida homeowners with eligible wind-resistant features may qualify for these types of discounts.
How to Purchase and Manage an Allstate Homeowners Insurance Policy
If you’re in the market for homeowners insurance, you can purchase a policy by getting a quote on Allstate's webiste. To speed up the process, have the following information ready:
Home information
- Year built and number of stories
- Purchase date
- Square footage
- Full address
- Occupancy status and length of time lived there
- Roof age
- Notable features (e.g., pool, deck, fireplace)
- Safety systems (e.g., alarms, sprinklers)
- Any rental, shared, or business use
Policyholder information
- Full names, email, and phone numbers
- Birthdates, gender, and marital status
- Occupation (may impact discounts)
- Driving history (recent accidents or violations)
Coverage preferences
- Desired coverage types and limits
- Deductibles (all perils and wind/hail)
- Preferred start date
Once your policy is active, you can use your Allstate online account to:
- Pay your premium and manage billing options
- View your insurance ID cards
- Manage your insurance policy
- File and track a claim
- Connect with or find a local agent
- Receive account updates via push notifications
Note: Allstate homeowners insurance is available in 49 states and Washington, D.C. It isn’t available in California as the company stopped writing new policies due to increased wildfire risk and rising insurance costs.
How to File a Claim with Allstate Homeowners Insurance
Allstate prefers all claims be filed online through "My Account." Once you log in, you can navigate to the correct section, upload your information, and begin the claims process. From there, you'll work with an Allstate claims representative, whom you can speak with throughout the process.
If you're having trouble with your online portal, you have a couple of other options:
- Speak with a representative: To discuss your home insurance claim with a representative, call 1-800-255-7828. You'll connect with someone who can answer questions and help you file your claim.
- Connect with your agent: Your agent can help guide you through the online claims process and provide additional support. To find your agent, log in to “My Account” and click "My Agent" at the top of the homepage.
It's a good idea to have a few key pieces of information on hand to ensure the process goes smoothly. According to Allstate, you’ll want to keep the following details nearby:
- Contact information for any contractors already involved
- Notes on damaged items/areas and possible causes
- Photos of the damage
- Date the incident occurred
- Any relevant weather conditions that may have contributed to losses
Your claim may be settled within 48 hours of an adjuster being assigned to your case, according to Allstate. The actual time it takes depends on the complexity of your claim.
Allstate Homeowners Insurance Customer Reviews and Ratings
Allstate homeowners insurance received a large volume of negative reviews. Many users express frustration with the company’s poor customer service and claims handling, particularly since its policies come at a high price.
However, your experience may differ. A good way to ensure a satisfactory claims process is to understand your coverages and have all your information prepared.
Here’s how the company scored with different review sites:
- Better Business Bureau: 1.12 out of 5
- Trustpilot: 1.2 out of 5
On the other hand, Allstate’s digital users are generally satisfied with its mobile app, which has received high ratings from both Google Play and the App Store.
- Google Play: 4.0 out of 5
- App Store: 4.8 out of 5
The table below shows Allstate’s ratings from various third-party agencies:
| Rating agency | Rating | What it means |
| AM Best | A+ | Superior financial strength |
| JD Power (Customer Satisfaction) | 631 out of 1,000 | Worse customer satisfaction than study average of 640 |
| JD Power (Property Claims) | 665 out of 1,000 | Worse customer satisfaction than study average of 682 |
| NAIC Company Complaint Index | 1.75 | More complaints than expected for its size |
Allstate Homeowners Insurance Alternatives
See how Allstate compares to three other options for home insurance coverage: Progressive, Farmers, and State Farm.
Allstate vs. Progressive Homeowners Insurance
Progressive Homeowners Insurance is among the top ten providers in the United States, based on the number of active home insurance policies. With competitive rates and a “Name Your Price” tool that customers love, the company offers unique financial benefits and competitive pricing. More importantly, it has online quoting and many bundling options for some customers.
Progressive sells homeowners, auto, motorcycle, boat, and other niche insurance products.
However, if you have specific requirements for additional coverage, Progressive's optional riders are more limited compared to Allstate's. So while the Name Your Price Tool may help you set a lower price, you may sacrifice essential coverage.
Read our Progressive homeowners insurance review.
Allstate vs. Farmers Homeowners Insurance
Farmers Homeowners Insurance offers every type of insurance you can imagine. The company provides a one-stop shop for all insurance needs, from pet insurance to business insurance.
The main difference between policies is that Farmers insurance standardizes replacement cost coverage. In the event of a claim, payout for replacements is based on current pricing, rather than the value of the damaged property.
Any homeowner who has been through a claim without replacement cost coverage can tell you how impactful it is. It could be the difference between replacing your belongings and paying out-of-pocket to finish rebuilding your home. Allstate offers this coverage, but it comes at an extra cost.
Read our Farmers homeowners insurance review.
Allstate vs. State Farm Homeowners Insurance
State Farm Homeowners Insurance is the most popular insurance provider in the country (based on the number of active insurance policies), making it the only company with more policyholders than Allstate. Both companies are reputable providers with long histories. In many ways, Allstate and State Farm are the most comparable providers on the list.
The primary difference is that State Farm homeowners insurance standardizes extra coverage up to 20% if the home rebuild cost exceeds the policy maximum. Allstate customers pay an additional premium for this coverage. Although Allstate offers more discounts, State Farm's base premiums are generally less expensive, which helps even out the pricing.
Read our State Farm homeowners insurance review.
Why You Should Trust Us: What Went into Our Allstate Homeowners Insurance Review
Business Insider used the following rating factors to review Allstate homeowners insurance:
- Pricing: We gathered quotes using a sample buyer profile to evaluate affordability across providers. While cost is a key factor, it’s not the only one. We also weighed the overall value, including added perks and benefits, as well as the range of discounts available to customers.
- Coverage options: The ability to customize coverage through optional add-ons can be a big plus. We assessed how Allstate’s optional coverage choices stack up against those offered by other insurers.
- Customer experience: To get a sense of customer sentiment, we analyzed reviews on major platforms like Trustpilot and the Better Business Bureau. We also compared Allstate’s reputation in this area to that of its competitors.
- Claims process: A smooth claims experience can make or break your opinion of an insurer. We used JD Power survey scores of homeowners insurance companies to gauge how satisfied customers are with Allstate’s claims handling relative to other providers.
- Financial health: To measure long-term reliability, we turned to AM Best’s ratings, which reflect a company’s ability to meet its financial obligations. A top-tier A++ rating signals exceptional financial strength, while lower scores may raise concerns about an insurer’s ability to pay claims, especially in times of widespread loss.
Read more about how Business Insider rates homeowners insurance.
FAQ
How do I find a local Allstate homeowners insurance agent?
You can find an Allstate homeowners insurance agent near you using Allstate's agent search tool, where you can filter based on location, experience, average rating and availability.
Is Allstate homeowners insurance good at paying claims?
Allstate homeowners insurance has a mixed reputation when it comes to paying claims, receiving a below average score from JD Power in claims satisfaction and negative customer reviews.
Does Allstate homeowners insurance cover floods?
Base Allstate homeowners insurance policies won't cover floods, but you can add flood insurance to your policy.
Is Allstate homeowners insurance better than State Farm?
Allstate homeowners insurance falls behind State Farm in pricing and customer satisfaction, scoring a 631/1,000 in JD Power's 2024 claims satisfaction survey compared to State Farm's 643/1,000.
What discounts are available with Allstate homeowners insurance?
Allstate homeowners insurance offers many discounts, including welcome, new homebuyer, easy pay, and multi-policy discounts. Work with an Allstate agent to ensure you get all available discounts.
