Personal Finance

Allstate Homeowners Insurance Review 2020

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.

With its competitive rates, wide range of coverage options and robust mobile app, Allstate home insurance is worth considering. You can get a quote online or talk to a local agent to talk through your alternatives.

Allstate is the nation’s second-largest home insurer and sells various insurance and financial products such as car and life insurance, IRAs and 529 plans. If you’re looking for a well-known company you can get all your policies from, Allstate might be a good fit.

Allstate homeowners insurance

Allstate homeowners insurance earned 4 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account coverage and discounts, ease of filing a claim, website transparency, financial strength, complaint data from the National Association of Insurance Commissioners and more.

» MORE: The best homeowners insurance companies

Allstate homeowners insurance coverage

In addition to dwelling coverage, liability insurance and other standard elements of a homeowners policy, Allstate offers these optional add-ons for those seeking extra coverage:

  • Identity theft restoration, which pays legal fees and other costs if your identity is stolen.
  • Water backup coverage for damage caused by a backed-up drain or broken sump pump.
  • Increased coverage for valuable items like sports equipment, musical instruments, jewelry or antiques. An appraisal may be required.
  • Business property coverage, which offers higher limits for business-related items stored in your home.
  • Green improvement reimbursement, which pays to replace damaged items with energy-efficient versions after a covered claim.
  • Yard and garden coverage, which raises your limits on items like trees, plants and lawn mowers.
  • Electronic data recovery coverage to pay for lost photos, videos or other files on your personal computer.
  • Reimbursement provision, which pays you back for brand-new replacements for items stolen or destroyed in a covered claim after you furnish a receipt. If you choose not to replace an item, Allstate will cover its depreciated value.
  • HostAdvantage, which is designed for those who temporarily rent out their homes through Airbnb or similar services. This home-sharing insurance pays out if renters destroy or steal your personal property, which homeowners insurance doesn’t cover, up to $10,000 per rental host period.

You can also upgrade your policy with the Enhanced Package, which includes three benefits. The Deductible Rewards feature takes $100 off your deductible as soon as you sign up, plus an additional $100 off for each year you go claim-free, up to a total of $500. You’ll also get 5% off your annual renewal rate if you didn’t file a claim in the previous year. And if you do file a claim, your rates won’t go up unless you exceed one in a five-year period.

Not all optional coverage types are available in all states.

» MORE: Homeowners insurance: What it is and what it covers

Allstate homeowners insurance discounts

Allstate offers a variety of ways to save on homeowners insurance, which differ by state but may include the following discounts:

  • Multipolicy discount.
  • Claim-free discount.
  • Discount for paying in full or through an escrow account.
  • Discount for buying a newly constructed home.
  • Recent home buyer discount.
  • Welcome and loyalty discounts.
  • Autopay discount.
  • Discount for safety and security devices.
  • Early signing discount for getting a new policy at least a week before the previous one expires.

» MORE: What is the average cost of homeowners insurance?

Allstate homeowners insurance rates

NerdWallet compared Allstate’s average home insurance rates to those of four widely available insurers across the U.S. At $1,606 a year, Allstate’s rate was slightly lower than the national average ($1,631) and cheaper than most of its competitors’ in this mini-analysis. Of the four other companies we compared, only State Farm was less expensive, with an average premium of $1,596 per year.

Our sample rates were calculated for 40-year-old homeowners with a $1,000 deductible, $300,000 in dwelling coverage and $300,000 in liability insurance. Your own rates will be different.

» MORE: Home insurance quotes: What you need to know

Allstate complaints and customer satisfaction

Allstate had fewer than the expected number of complaints to state regulators relative to its size for home insurance, according to three years’ worth of data from the National Association of Insurance Commissioners.

The company was rated above average for customer satisfaction in J.D. Power’s 2020 homeowners insurance study and about average in its property claims study.

» MORE: Allstate auto insurance review

More about Allstate

Website: Allstate’s site makes it easy to file and track claims, get a quote and pay your bill. It’s also got an extensive collection of articles, videos, quizzes and calculators to help you learn more about home insurance.

Mobile app: You can pay bills, view policy documents, contact your agent and file claims through Allstate’s app. The Digital Locker feature is particularly useful for homeowners, guiding you through the process of making a home inventory in case your belongings are ever destroyed in a disaster.

Other Allstate insurance policies

» MORE: Allstate renters insurance review

Recap: Allstate pros and cons

Homeowners insurance ratings methodology

NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverages, discounts, online experience and more. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Homeowners Insurance Rates Methodology

NerdWallet averaged rates for 40-year-old men and women from five insurance companies in every ZIP code across all 50 states and Washington, D.C. Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1983. They had a $1,000 deductible and the following coverage limits:

  • $300,000 in dwelling coverage.
  • $30,000 in other structures coverage.
  • $150,000 in personal property coverage.
  • $60,000 in loss of use coverage.
  • $300,000 in liability coverage.
  • These are sample rates generated through Quadrant Information Services. Your own rates will be different.

    Methodology: Insurer complaints

    NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2016-2018. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

    This article originally appeared on NerdWallet