Allstate Homeowners Insurance Review

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With an 8.43% share of the home insurance market, Allstate is second only to State Farm in terms of size among all providers. You don’t get that big a piece of the pie without knowing a thing or two about providing customers with top-notch insurance, and it shows in Allstate’s customer reviews. Having received 4 out of 5 stars in overall satisfaction on a homeowner’s insurance survey conducted by Everquote as well as scoring in the top 25th percentile of home insurance providers according to a 2018 customer satisfaction survey by J.D. Power, customers looking for reliable homeowner’s insurance can count on Allstate. A wide variety of coverage options to best fit the needs of your space paired with cost-saving discounts and local agents to help you out every step of the way make Allstate unique for a provider of its size.

The Specs

Price Varies by location, your home and coverage
Best For Inexperienced buyers
Not For Those who live in wildfire-prone areas
States Served 50
Discounts Multi-Policy
Easy Pay Plan
Claim-Free
Protective Device
Early Signing
Welcome and Loyalty
Homebuyer
55 and Retired
Smoke-Free Home
Storm Shutters
Hail-resistant roofs
A.M. Best Rating A+
Standout Features Claim RateGuard
Claim-Free Rewards
Deductible Rewards

The claim

Allstate is most famous for its agents. It prides itself on having insurance experts available near you that can walk you through the process of insuring your home and making sure that the coverage you pick out is perfect for your circumstances.

Is it true?

Customers definitely don’t hate Allstate. Allstate received four out of five stars for customer, price and overall satisfaction, with 64% of Everquote survey respondents saying that they would buy from Allstate again. Though its J.D. Power ‘Power Circle’ ranking of just three out of five was slightly less-flattering, Allstate managed to finish seventh among 29 home insurance providers assessed on the basis of overall customer satisfaction. Through their above-average customer service, Allstate agents help customers understand their coverage options, find discounts, navigate the claims process and explore life insurance options.

Apart from the agents, Allstate provides its customers with a number of tools that can be helpful in demystifying the process of insuring your home. Their website is full of educational resources such as articles that explain the types of insurance coverage available, tools to find an agent nearby and a quote calculator that gives users a starting ballpark figure of what it might cost to get insured. For prospective homeowners that are buying home insurance for the first time, Allstate’s claim to fame is true: you’re in good hands.

Our deep dive

Dwelling Coverage:

Under this coverage, the physical structure of your home, like the walls and roof are protected

Liability Protection:

If someone sues or files a claim against you after being injured on your property or you damage someone else’s property, this protects you financially.

Personal Property Coverage:

Even if they’re damaged or stolen outside the house, belongings like furniture or bicycles are protected under this coverage.

Guest Medical Protection:

If someone is injured on your property, this coverage covers the cost of medical expenses for that person.

Personal Umbrella Policy:

When you reach the liability limit on your property policy, this coverage protects you against large liability claims.

Manufactured and mobile home insurance:

Coverage to purchase if you have a manufactured or mobile home.

HostAdvantage®:

If you run a home-sharing operation like AirBnb, this coverage covers your belongings in cases of theft or damage.

Flood Insurance:

In the event that your home is at risk of flood damage, an Allstate agent can help you purchase flood insurance through the National Flood Insurance Program (NFIP).

Common and costly claims near you:

In order to create the most effective Allstate homeowners insurance coverage, this tool helps you find details on homeowner’s claims in your area to give you a better idea of what kinds of risks to which your home might be vulnerable.

Premium Gauge Tool:

The Premium Gauge tool can help show you what factors might affect the price of your Allstate home insurance.

Cost rundown

There’s no such thing as a one-size-fits-all quote for homeowner’s insurance. Every home is different and it’s important that your home insurance policy protects your home in areas where it might be vulnerable. Though factors such as your home’s location, size and your credit score weigh heavily in determining your monthly premium, there are a number of other things that insurers take into consideration.

Your location factors heavily into your home insurance premium. In areas that are especially vulnerable to certain risks, homeowners can expect to pay more each month for their premiums than in other, less-vulnerable areas. Allstate’s basic coverage policy protects homeowners from such risks and perils as:

  • Falling objects
  • Water damage from various forms of plumbing
  • Smoke and fire
  • Burglary
  • Hail and windstorms

Cheaper (or free!) alternatives

Though your home insurance premiums take into account a lot of factors that are beyond your control, there are a few things that you can do to make sure you secure the best rate possible:

  • Beef up your credit score: It’s no secret that your credit history is one of the key indicators that insurance providers look at when determining your rates. By taking steps to improve your credit score a bit, you show providers that you are financially responsible and deserving of a lower monthly premium.
  • Do your homework: Regardless of whether it’s your first time or not, never settle on the first coverage offer you receive. Take your time and scour the market for the best combination of rates and coverage available to you to ensure that you get the most bang for your buck.
  • Equip your home: Many providers like Allstate offer discounts to homeowners that have safety devices such as smoke detectors and burglar alarms installed. Outfitting your home with wind-resistant shutters and hail-resistant roofs could drive down your premiums as well.
  • Maintain your policy: Another trick that works with some providers is making sure that your home insurance policy is active before switching to a new one. An uninsured homeowner may appear slightly less responsible than one who is already covered.
  • Bundle your coverage: Insurance providers will jump at the opportunity to provide coverage in more than just one domain. If you add homeowner’s insurance to your existing auto insurance, it’s likely that they will offer you a discounted premium.

    The Competition

    State Farm:State Farm is the only home insurance provider in the United States with a larger share of the market than Allstate. Outscoring by a minuscule three points out of 1,000 on J.D. Power’s Customer Satisfaction survey, the two are just about neck-and-neck when it comes to client service. With branches in all 50 states and the District of Columbia, State Farm has over 65,000 employees and more than 19,000 independent contractors, making it a good deal larger than Allstate. State Farm offers deductions for multi-policy holders, home alert protection and impact-resistant roofing, among other security measures.

    Amica Mutual Insurance: Like Allstate, Amica services clients in all 50 states, along with the District of Columbia. Though its 3,800 employees make it a vastly smaller operation than Allstate, Amica’s customer service more than makes up for the size disparity. Amica ranked first among all home insurance providers in J.D. Power’s 2018 customer satisfaction survey, receiving five out of five ‘Power Circles’ and a score of 861 out of 1000. In addition to great customer service, Amica also offers discounts for multi-policy holders, alarm systems, automatic payment and customer loyalty.

    Liberty Mutual: Employing just over 50,000 people, Liberty Mutual is roughly the same size as Allstate. It has received an A+ rating from the Better Business Bureau and has over 800 offices globally. Despite the name recognition that they bring to the table however, Liberty is just OK when it comes to customer satisfaction. Receiving a score of 797 out of 1000 on J.D. Power’s 2018 customer satisfaction survey, Liberty is middle-of-the-pack when it comes to taking care of their clients’ needs. Despite this, they offer enticing discounts for multi-policy holders, new home buyers, homeowners with no previous claims and buyers who have equipped their homes with safety devices. They also service clients everywhere in the US.

    USAA: If you’re a veteran or a family member of a veteran, USAA may be your best option for home insurance. USAA received top marks for customer satisfaction on the 2018 J.D. Power survey, scoring an impressive 891 out of 1000. It also matches up well with Allstate in terms of coverage options, providing homeowners with policies that include dwelling, theft, personal property, flood and fire coverage, among other options. Additionally, USAA offers a number of discounts to buyers, including bundling, no-claims, new home and safety device options. The catch, as you may have noticed, is that their coverage is only available for members of the armed services and their immediate family.

    What Others Are Saying

    • In September 2019, Chicago Business reported that Allstate is building three large call centers in the U.S. to handle customer inquiries. This is being met with a fair amount of backlash from Allstate agents, whose base commission would be impacted by the move. Though the transition would generate enormous savings for Allstate, it could generate discontent among its agents.
    • Berkleyside reported that Allstate recently dropped homeowners in California for fear of risk to exposure against wildfires as of September 2019. Allstate ignored requests for answers to questions regarding their non-renewal decision, but offered to help some homeowners find replacement coverage.

    The Bottom Line

    Allstate is without question one of the biggest names in the home insurance industry with nearly a century of experience. For first-time buyers, Allstate’s step-by-step process of identifying unique risks and helping users find a policy that works best for their home is among the best. The numerous discounts offered through Allstate home insurance are a nice added incentive and the standard coverage components make sure that you will be adequately protected from any potential risks.

    The post Allstate Homeowners Insurance Review appeared first on The Simple Dollar.

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