In 1931, Allstate launched its initial insurance policy. This residential fire insurance policy ultimately paved the way for present-day homeowner’s insurance. This comprehensive insurance product was introduced by Allstate in 1954.
Now, Allstate is the second largest provider of homeowners insurance in the United States after State Farm, with over $10 billion in premiums written and an 11.5% share in the industry. Headquartered in Northbrook, Illinois, Allstate offers numerous coverage options and discounts.
We aim to support you in making the best choice for your residential insurance needs. We can help by conducting a thorough review of Allstate’s home insurance options, as well as their cost savings and customer happiness results.
Keep reading to gain a better understanding of the customized coverage options and financial ratings provided by Allstate. With our assessment, you can look forward to a more detailed view of Allstate and hopefully make an educated decision on your insurer of choice.
Allstate homeowners insurance coverages and premiums
We wanted to put Allstate’s coverages to the test. Thanks to their online quote tool, we were able to plug in a recurring test address to compare our premiums.
We used this address before for a few other quotes with competitive companies. This is a $140,000, 1,220-square-foot home built in 1986 in Arkansas, where wind and hail take the cake for state-specific claims.
Read our other reviews to see how these prices and coverages can be compared!
As for Allstate, their quote tool was very easy to navigate. Just by plugging in the address, Allstate already had most of the information it needed to proceed with premium and discount calculations. It asked us about our attached porches and decks, as well as any safety features we have on the premises. Once it was complete, we were provided with 3 different tiers of coverage to choose from:
|Other Structures||$24,010 (10%)||$24,010 (10%)||$48,019 (20%)|
|Personal Property||$144,058 (60%)||$180,073 (75%)||$180,073 (75%)|
|Loss of Use||$24,010 (10%)||$48,019 (20%)||$48,019 (20%)|
|Personal Liability||$100,000 per occurrence||$300,000 per occurrence||$500,000 per occurrence|
|Medical Payments||$1,000 per person||$2,500 per person||$5,000 per person|
|All Peril Deductible||$2,500||$1,000||$1,000|
|Additional Coverage||NONE||Building Code: $12,005 (5%)|
Building Structure Reimbursement Extended Limits: 120%
|Building Code: $24,010 (10%)|
Building Structure Reimbursement Extended Limits: 120%
|Total Yearly Premium||$1,540||$2,085||$2,159|
Here is how Allstate stood up against our other reviewed companies based on this address:
|Insurer||Dwelling Coverage||Annual Premium|
We recognize that, even with the lowest tier of coverage, Allstate’s premium is still higher than Farmers’ rate by a few hundred dollars a year. However, when you consider that Allstate has better customer satisfaction ratings than Farmers according to J.D. Power’s study, this is still a favorable price. This sets Allstate apart from the competition, especially when you consider how some competitors are offering less coverage for hundreds more.
Additional coverages from Allstate
Speaking of coverages, here are some optional coverages we were offered during our quoting process:
- Water backup: helps you pay for the costs associated with a backed-up drain or broken sump pump.
- Green improvements: protects you against additional expenses pertaining to the replacement of damaged energy-efficient items.
- Extended coverage for jewelry, watches, and furs: increases your personal property limits up to $30,000 per valued item worth $5,000.
- Identity theft: covers the expenses incurred as a result of identity theft.
- Claim rate guard: protects you from a rise in your premium due to a claim being filed.
- Business property: takes care of the costs associated with damage to your business-related possessions.
- Yard and garden protection: increases the coverage limits available to protect you from the costs of landscaping on your property.
- Sports equipment: increases the protection available to pay for expensive sports gear.
- Musical instruments: increases the protection available to pay for expensive music equipment.
- Green improvement: pays for the costs associated with replacing damaged features with energy-efficient ones.
Allstate also has a few other insurance products for your home and personal property. These include umbrella insurance, home-sharing insurance, guest medical protection and so much more.
Allstate homeowners insurance discounts
Our quote is met with automatically applied savings options before checkout. These came from certain prompts during the pricing process. We saved $646 with 4 applied discounts, including:
- Home buyer: This is applied when you purchase a newly constructed home, or just recently bought a home.
- Protective device: This is applied when you let Allstate know that you have theft and/or fire protection devices installed on your property.
- Responsible payment: This is applied when you have a decent payment history from paying on time and in full.
- Welcome: Save 10% just for switching to Allstate, and save 10% every year thereafter.
Other discounts provided by Allstate include:
- Claim-free discount: Receive savings of up to 20% when you switch to Allstate without a recent history of home insurance claims. We receive this type of discount automatically with other insurers, but not with Allstate for some reason.
- Multi-policy discount: Receive savings of up to 25% when you bundle Allstate policies like home and auto.
- Easy pay plan discount: Receive savings of up to 5% when you set up automatic payments.
- Early signing discount: Receive savings of up to 10% when you sign up for a policy a week before your existing one expires.
Allstate’s homeowners insurance customer reviews
The NAIC registered a less-than-average number of complaints for Allstate in 2022. With the normal level of 1, Allstate only received an index of 0.73 complaints. Still, homeowners insurance surpassed other complaint topics.
The BBB highlights an incredible 3,014 Allstate complaints closed in the last 3 years. Many of them cited bad faith claims and unresponsive agents.
Elsewhere on the internet, Allstate customers are satisfied. Many policyholders rave about how Allstate provides what they call “the best” service due to its integrity and flexibility. Hardly anyone has anything negative to say about their prices, save for a few that were caught up in the great inflation.
Allstate’s claims reviews
Even with a complaint index below industry standards, the NAIC still dictates how claims are the main types of gripes. In 2022, Allstate was met with a majority of claims handling complaints pertaining to delays. Unsatisfactory settlements, denials, and adjuster handling were other areas of concern.
In J.D. Power’s 2022 U.S. Property Claims Satisfaction Study, Allstate was ranked as an average performer. This is compared to other major insurance companies in terms of claims payout and overall claims handling.
Looking at customer reviews, many of them seem to be more upset with claims denials. Many customers are taken aback by how their policy details weren’t ironed out before a claim needed to be filed.
If you need to file a claim with Allstate, you can do so online through your account. You can expect the process to be handled on time, but there may be a few roadblocks that you won’t anticipate. It may be best to be prepared for the process and do your research in advance.
Allstate’s financial strength
Today, Allstate is among Weiss Ratings’ strongest property and casualty insurers. With a solid “B” rating, they believe Allstate offers good financial security and has the resources to deal with a variety of adverse economic conditions. It comfortably exceeds the minimum levels for all criteria and is likely to remain healthy.
However, Weiss believes in the event of a severe recession or major financial crisis, this assessment should be reviewed. They think it would be beneficial to make sure that the firm is still maintaining adequate financial strength at that point.
AM Best has provided Allstate with a strong “A+” financial strength rating for years now. This is coupled with a solid “aa” (Excellent) long-term issuer rating.
The BBB notates an “A+” rating for Allstate but does not consider them an accredited business. On the other hand, Demotech has provided Allstate with an “A double prime” score, notating an unsurpassed rating for financial stability.
Allstate is among the most highly regarded home insurance providers in the country. This is because of its:
- Reasonable premium charges
- Numerous options for discounts
- Impressive customer service records
- Admirable financial stability ratings,
- and several supplementary coverage alternatives
For those who require all-encompassing and adjustable coverage at an affordable price, this insurance giant is the ideal choice. You’ll appreciate their loyalty discounts and continued savings options. Allstate is a leader in financial security and customer support, and they have the reviews and ratings to prove it.
All of their features help provide consumers with the necessary insurance options to safeguard them against whatever curveballs life may throw their way.