Allstate is the second largest home insurer in the United States. The company had $7,166,931 in premiums written in 2014 and 9.1% of the home insurance market share. It provides quotes for prospective policyholders both online and through their network of approximately 11,900 agents. The company, widely known for the slogan “You’re in good hands with Allstate”, also sells auto insurance through its own brand and Esurance. In our review, we’ll show how Allstate’s home insurance quotes compare to other companies, and discuss some other useful features about their homeowners coverage.
- Allstate Home Insurance Quote Comparison
- Our Review of Allstate's Policy & Coverage
- Financial & Customer Ratings
- Filing a Claim with Allstate
We compared Allstate’s homeowners insurance quotes to a number of its national competitors, using two houses in California as an example. The sample 15-year-old single family homes in this example have replacement cost values of $250,000 and $400,000 as a benchmark.
You probably noticed Allstate is not the cheapest, among a subset of the national carriers that we've shown. Out of the 50 companies surveyed, the price of an Allstate policy ranked 38th cheapest for $250,000 of home insurance coverage in CA. Quotes from Allstate generally fell within the more expensive half of homeowners policies offered in these scenarios. The average cost for our example policy covering a $250,000 home in the Golden State was $836. Coverage through Allstate would cost our example homeowner about $908, which was 9% more than the mean across the 50 carriers. It placed roughly between State Farm and Liberty Mutual for this house.
The same 50 carriers quoted an average of $1,265 for a year's coverage for an example house in California with a replacement cost of $400,000. Against the set of 50 homeowners insurance companies, Allstate's sample quote ranked it among the most expensive end - it placed with the 41st lowest costs, or the 10th highest quotes out of the CA bunch. Liberty Mutual and State Farm this time both ranked more affordably compared to Allstate on the basis of quotes for this example house and home owner.
However, this study, using data from the California Department of Insurance's annual survey, only compares a small number of factors, and only goes to show that rates can vary significantly based. Your own home insurance quote will vary greatly just based on where you live, the replacement cost of your home and personal belongings stored in it, etc. And remember there are others things to consider beyond the price of a policy such as agent relationships, customer ratings and claims processes.
As we mentioned, Allstate is the nation’s second largest home insurer, with about 9% of the market. Although its size and market share are differentiators, its coverage is very similar to what other companies offer. All homeowners insurance policies cover the structure of the home, the belongings of the policyholder, liability and additional living expenses. Beyond the price of policies, what sets home insurance companies apart from one another are their supplemental tools, services offered, their business structure and claims process.
Approximately 16 million households use one or some combination of products sold by captive Allstate agents and independent agencies. In other words, you can purchase a policy from an Allstate agent who then would serve as a point of contact at the company. In the event you needed to file a claim for any policy, purchase more insurance or have a question about your policies, you would contact your agent. In contrast, other companies only have call centers where no specific person will address your claim.
For those interested in managing most or all of their financial services through one company, Allstate might not be the best fit. While the company offers many lines of insurance along with life insurance and retirement and investment products, it does not offer features like checking and savings accounts. If you're happy with your current banker, then this probably won't make a difference.
Allstate policyholders offer a number of the following additional benefits with their home insurance. However, like most things, you get what you pay for.
Premium Gauge: Allstate’s Premium Gauge tool is free to use but essentially worthless to consumers. The only marginal benefit to using the tool is to show someone the impact factors have on the relative cost of the policy. It doesn’t even show exact dollar amounts. Forego the Premium Gauge and use Allstate’s online quote calculator instead.
Claim RateGuard: Allstate also offers what the company calls the Claim RateGuard benefit, which keeps the cost of a policyholder’s premium from going up after their first claim. It is unclear whether there is a surcharge added to the cost of a premium for this feature or it it is included. An agent told us this benefit is usually included in new home insurance policies and that there is no surcharge.
Good Life: Allstate also has a portion of the company website titled Good Life which lists additional benefits available to home insurance policyholders. Some of these include a one-year subscription to Angie’s List paid for by Allstate (a $10 value), earning cash back when you purchase a home with Allstate Realty Advantage and other discounts. The most costly the home you purchase, the more cash back you get. For example, home purchases between $100,000 and $199,000 get $500 cash back while homes purchased for $900,00 or more get $3,100.
Mobile Apps: Allstate has a number of different mobile applications available to policyholders that are free to download. The flagship Allstate mobile app is similar to those of other insurers. Policyholders can pay their bill, access and share their digital ID card, have easy access to their agent’s information, upload photos of damages and call for roadside assistance. Allstate Policyholders have access to an Allstate Digital Locker as well. The app enables policyholders to log and organize a record of their personal belongings remotely so it is safe in the event of an emergency. Other applications include Drivewise Mobile by Allstate and the Allstate Motor Club Access app, although these are more applicable to Allstate's auto insurance customers.
Allstate has been evaluated by a number of financial rating institutions and overall has good financial strength as a company. For consumers, this means that the company is adequatey prepared to pay out claims filed.
|Rating Company||Allstate Insurance Rating|
|Standard & Poor's||AA-|
|Moody's Investor Service||Aa3|
Allstate also received an overall rating of about average by the 2014 J.D. Power Homeowners Insurance Study, which surveyed customers to determine how the company performed across a number of customer service aspects.
|J.D. Power Homeowners Insurance Study Rating for Allstate|
|Billing and Payment||Average|
Filing a homeowners claim won't be the same for everyone. If you purchased an insurance policy through an Allstate agent, that agent should be your first point of contact in the event you need to file a claim. They will give you instructions regarding it and be able to answer any questions you might have. If you purchased an Allstate policy through an independent broker, you can file a claim on the Allstate website or over the telephone. Both contacts are below.
- 1-800-ALLSTATE (1-800-25578283)
- 1-800-255-7828 (Claims number)