Weighing Your Home Insurance Options to Find the Best For You
If you’re a homeowner in the United States, you’re most likely familiar with Allstate and State Farm insurance providers—two of the biggest insurance companies in the country. But while both home insurance companies offer various homeowners insurance services across the country, they differ in many ways, including liability, living expenses, medical payments coverage and more.
To help U.S. homeowners determine which home insurance company is more suitable for their needs, we compare both insurance companies in this Allstate vs. State Farm home insurance review below.
Our Opinion
When comparing Allstate and State Farm, the former wins in terms of customer service, while the latter offers cheaper coverage. State Farm is ideal for homeowners on a budget, as the company offers cheaper average rates across many states in the U.S., and you can seamlessly combine your home and auto insurance with them at a low cost.
On the other hand, Allstate offers broader coverage options, and the company’s customer service is better—as reported by online users. So, Allstate may be the perfect option for you if you are all for quality and effective customer service that makes the insurance process more accessible.
Allstate Home Insurance
Allstate is one of the top two names among America’s home insurance companies. The company was established in 1931 to help U.S. residents navigate the great economic depression and financial insecurity at the time. Today, Allstate offers customers a wide range of products and services, including car insurance, life insurance, individual retirement accounts, college savings plan and homeowner insurance.
The company is reputable for the excellent customer service that makes it easier for first-time customers to understand their offerings better while existing customers get the support they need if they have challenges.
There are several types of home-related coverage offered by Allstate, including condo, renters, landlord, and vacation home coverage. In addition, you can add an umbrella insurance policy to Allstate homeowners insurance for an additional layer of liability insurance.
However, despite its wide range of coverages, Allstate has higher-than-average rates, which is a potential deal breaker if you’re looking for low-cost insurance options to protect your home.
Pros
- Numerous home insurance coverage options.
- Excellent customer service.
- Multipolicy option available.
- No banned dog list for most homeowners.
Cons
- Insurance rates are above industry average.
- No option for additional guaranteed or extended replacement cost coverage.
State Farm Home Insurance
State Farm was founded in 1922, making it one of the oldest and largest homeowners insurance companies in the U.S. Today, the insurance giant offers a wide range of services, including personal loans, insurance, investments, and more. As a result, State Farm is an excellent choice if you’re looking for a comprehensive insurance platform that lets you insure your life and properties in one place.
One of the perks of buying State Farm insurance products is the company’s cheaper-than-average rates for all their auto, condo, home, life, and renters insurance services. State Farm offers customers few insurance discounts. They have a supportive customer service team that makes it easier for you to ask questions and resolve whatever issues you may face when using their services.
Interestingly, suppose you want a personalized experience. In that case, State Farm has a vast network of more than 19,000 agents, making meeting with a local insurance agent near you and creating a custom-made insurance experience easy.
Pros
- Low-cost home insurance in all 50 U.S. states.
- Save up to 23% by combining home and auto insurance.
- Extended replacement cost average available.
- No banned dog list.
Cons
- Some complaints about customer service.
- Not many insurance discounts as competitors.
Allstate vs. State Farm: Home Insurance Comparison
Below, we give a quick overview of the individual home insurance offerings by Allstate and State Farm.
Allstate Home Insurance
- Number of States - 50
- Discounts Available - 7
- Customer Service Channels - Phone, email, in-person and online chat.
- Claims Processing - Phone, online and mobile app.
- NAIC Complaint Score - 0.66
- Overall Rating - A+
State Farm Home Insurance
- Number of States - 50
- Discounts Available - 3
- Customer Service Channels - Phone, in-person and online chat.
- Claims Processing - Phone, online and mobile app.
- NAIC Complaint Score - 0.32
- Overall Rating - A++
Insurance Coverage Comparison: Allstate vs. State Farm
Both Allstate and State Farm offer the standard home insurance coverage to customers. However, coverage amount varies by location and home replacement value. We highlight the available coverage below.
Allstate
- Dwelling Insurance - Yes
- Insurance for other structures - Yes
- Personal property insurance - Yes
- Personal liability insurance - Yes
- Medical payments insurance - Yes
- Loss of use insurance - Yes
State Farm
- Dwelling Insurance - Yes
- Insurance for other structures - Yes
- Personal property insurance - Yes
- Personal liability insurance - Yes
- Medical payments insurance - Yes
- Loss of use insurance - Yes
Average Home Insurance Rate: Allstate vs. State Farm
In terms of average home insurance rates, both Allstate and State Farm offer decent costs below the national average. However, State Farm wins, as highlighted below.
- Allstate - $1,632 average annual rate.
- State Farm - $1,529 average annual rate.
Home Insurance Riders: Allstate vs. State Farm
In relation to home insurance riders, Allstate wins because it offers 14 different endorsements with unique options like green improvement reimbursement coverage, while State Farm offers only five endorsements. We highlight some of them below.
- Rate Guard - Allstate.
- Green improvement reimbursement - Allstate.
- Identity theft issuance - Allstate, State Farm.
- Home sharing coverage - Allstate, State Farm.
- Inflation guard - State Farm.
- Personal umbrella insurance - Allstate, State Farm.
- Flood insurance - Allstate, State Farm.
- Water backup insurance - Allstate.
- Business property - Allstate.
- Scheduled personal property - Allstate.
- Sports equipment insurance - Allstate.
- Yard and garden coverage - Allstate.
Insurance Discounts: Allstate vs. State Farm Home Insurance
State Farm and Allstate offer some renters insurance discounts that can help you save some money. However, insurance discounts at State Farm are more limited. We highlight the three popular homeowners insurance discounts below.
- Multi-policy discount - Allstate, State Farm.
- Security system discount - State Farm.
- Retired (55 or older) - Allstate.
Conclusion
In this Allstate vs. State Farm home insurance review, we’ve compared both insurance companies, including their pros and cons.
Allstate is a better homeowner insurance option if you want comprehensive coverage and more discounts. At the same time, State Farm is better for homeowners looking for affordable coverage options in all 50 U.S. states.