Without a doubt, when it comes to homeowners insurance, Allstate is certainly considered one of the big guns. Ask somebody to name the top five home insurance companies and it’s highly likely that Allstate will be among them.
In this article, we intend to provide the information you’ll need to make an informed decision about Allstate homeowners insurance and whether you should go forward with getting an Allstate home insurance quote.
NOTE: We are not Allstate. If you need to contact an Allstate representative, you can call them at (855) 402-5427, contact them through their website at Allstate.com, or visit a local agent in your area.
Allstate Corporate Offices
2775 Sanders Rd.
Northbrook, IL 60062
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About Allstate Insurance Company
Allstate, the largest personal lines insurance carrier in America is also the second-largest underwriter worldwide. Allstate distributes its insurance products through an agency distribution network of 14,000 captive agents along with banks and other financial institutions.
Originally founded in 1931 as part of Sears, Roebuck, and Company, Allstate Insurance Company was spun off in 1993. Since that time, Allstate has grown to one of the largest corporations in the United States while finishing 2018 with almost $40 billion in revenue.
Allstate is ranked 79th in the Fortune 500 list of companies as far as revenue and has been known as “the good hands” company since 2004.
Allstate Insurance Company Financial Stability
Since being a well-known insurance company doesn’t translate into financial stability, it’s important that consumers check any insurance company’s ratings that will demonstrate if a company is financially viable and whether you can expect them to keep the promise of paying a covered claim. Here is how Allstate companies were rated in 2018:
|Insurance Company||A.M. Best||S&P Global||Moody’s|
|Allstate Insurance Company||A+ (Superior)||AA-||Aa3|
|Allstate Life Insurance Company||A+ (Superior)||A+||A1|
|Allstate Life Insurance of New York||A+ (Superior)||A+||A1|
|Allstate Assurance Company||A+ (Superior)||Not Rated||A1|
Allstate Insurance Products
Most consumers know about Allstate’s home and auto insurance products but the company offers many other products as well to help individuals, families, and businesses, to mitigate their financial risks.
|Auto Insurance||Home Insurance||Recreational||Life Insurance||Business Insurance|
|Auto||Homeowners||ATV||Term Insurance||BOP coverage|
|Motorcycle||Renters||Motor Home||Whole Life Insurance||Commercial Property|
|Personal Umbrella||Condo Coverage||Travel Trailer||Universal Life Insurance||General Liability|
|Landlord Coverage||Boat||Commercial Auto|
|Mobile Home||Personal Watercraft||Commercial Umbrella|
Certainly, this list of property & casualty and life insurance products makes it easy to understand how Allstate has become one of the largest insurance underwriters in our country. But, for the purpose of this article, we’ll focus on Allstate homeowners insurance.
Allstate Homeowners Insurance Review
Allstate offers the traditional homeowners’ insurance package provided by the HO3 form. Using the HO3 form, Allstate can offer a package of coverages that allows applicants to financially protect the dwelling, other structures, personal belongings, personal liability, medical payments, and loss of use.
|Type of Coverage||What it Covers||Typical Limit of Coverage||Deductible Applied|
|Dwelling||Covers the structure of the home and any attached/built-in appliances||Claims are generally based on replacement cost of the home (land or lot not covered)||Yes - Flat amount or % of structure value|
|Other Structures||Covers any structures on the property not attached to the house such as fences, barns, workshops||Usually 10% of dwelling limit. Can be increased if needed.||Yes|
|Personal Property||Personal belongings inside and outside of your home||50% of dwelling limit but can be increased or decreased as needed||Yes|
|Loss of Use||Pays for temporary relocation expenses while the home is under repair||20% of dwelling limit||Yes|
|Personal Liability||Pays for medical expenses and legal expenses if found liability for injuries or property damage to a third-party||Typically available limits are $100,000 to $1 million||No|
|Medical Payments||Pays medical expenses for third-party injuries regardless of fault||Typical limits are $1,000 to $10,000||No|
Along with the standard list of coverages, Allstate offers optional coverages that can make your homeowners’ insurance even more comprehensive. Additionally, applicants can generally choose to increase several of the coverages in the HO3 package and have a selection of deductibles that will their budget and needs.
Additional Coverages Available from Allstate
|Water Backup & Sump Overflow||This coverage pays if your drains back up or sump pump overflows and causes damage|
|Scheduled Personal Property||When scheduled, valuable personal property is insured for appraised value rather than actual cash value.|
|Electronic Data Recovery||This coverage pays for the costs to replace lost or stolen computer data.|
|Identity Theft||Coverage to replace the policyholder for lost wages and legal fees incurred as a result of stolen identity.|
|Green Improvement||Helps cover the additional cost of upgrading to energy-efficient versions of items you’re replacing after a claim.|
|Claim RateGuard||Adding this option provides for Allstate not to increase your rates after your first homeowners claim.|
Allstate Homeowners Insurance Rates
There are several factors involved when determining a homeowner’s insurance quote. The company will take into consideration the following underwriting information:
- Location of the home
- Year built (age of home)
- Roof material and age of the roof
- Characteristics of the home such as living area square footage, floor coverings, construction material, distance to nearest fire station, fire and security alarm.
- Owner information such as credit score, claims history, age, and other personal information.
After this information has been accumulated a pending rate is established subject to qualifying discounts.
Allstate Homeowners Insurance Discounts
When it comes to money-saving discounts, Allstate stands out among its competitors. With Allstate’s available discounts, applicants can save substantial money on their homeowners’ policy year over year.
Applicants can reduce the cost of homeowners insurance by having burglar and fire protection alarms installed.
|Multi-Policy||Like many other companies, applicants can save up to 25$ when they purchase home and auto insurance from Allstate.|
|Auto-Pay||Save 5% on your policy when you set up automatic payments on your policies.|
|Protective Devices||Applicants can reduce the cost of homeowners insurance by having burglar and fire protection alarms installed.|
|Claim-Free Discount||Homeowners who have been claim-free for a number of years will save up to 20% on insurance rates.|
|Home Buyer Discount||Applicants who are insuring a new home or newly built home can save on insurance premiums.|
|55 and Retired||Applicants who are retired and 55 or older will be rewarded with lower insurance rates.|
|Construction Discounts||Homeowners who have a storm-resistant roof or storm-resistant shutters will save even more on Allstate home insurance.|
Allstate customer and former customer Feedback
Although the internet is not always the best place to find comments about a company you are considering, there are certain websites that offer reviews that have been validated. Here’s what we found:
- S. Insurance Agents – 3 out of 5 stars (615 reviews)
- Consumer Affairs – 75 out of 5 stars (820 reviews)
- Wallet Hub – 5 out of 5 stars (221 reviews)
- D. Power – 3 out of 5 stars (overall customer satisfaction)
Frequently asked Questions
Didn’t Allstate used to be part of Sears?
Yes, Allstate started in Sears stores in 1931 but was spun off in 1993.
Does Allstate have the lowest homeowners insurance rates?
Although Allstate is a very competitve and successful homeowners insurer, their rates are in the higher range in the top 10 companies.
How can I get better coverage on gun collection and expensive watch?
Allstate will allow policyholders to “schedule” expensive personal property so that you can insure it for the appraised value. Your rates will be adjusted based on the total value of your scheduled property.
What if I need more liability coverage?
If your liability limits aren’t high enough, Allstate will allow you to purchase umbrella insurance for your Allstate homowners insurance.