Allstate vs. State Farm Home Insurance: How to Decide Which Is Right for You
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Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
If you've been trying to choose between Allstate vs. State Farm homeowners insurance, you've come to the right place. Both carriers are known for offering quality coverage and have been in the industry for many decades. State Farm recently surpassed its century mark in the insurance industry, having been founded in 1922. Allstate isn't too far behind, though, considering the carrier got its start in 1931.
There are some key differences to weigh when considering State Farm vs. Allstate home insurance. While Allstate has proven to offer a longer list of discounts, State Farm's default home insurance policies seem to offer more generous coverage than its competitor.
Of course, an independent insurance agent in your area can help you shop and compare quotes and policies from each carrier, as well as any others that offer home insurance near you. But first, check out our guide to Allstate vs. State Farm homeowners insurance to decide which is right for you.
Allstate vs. State Farm Homeowners Insurance Coverage
State Farm's default home insurance policies offer a bit of an advantage over Allstate's. State Farm provides an additional 20% of dwelling coverage beyond the amount chosen by the policyholder.
Dwelling coverage is a critical component of home insurance that can provide reimbursement for damage or destruction to the structure and foundation of your home after instances of vandalism, fire, falling objects, hail, wind, and much more.
The cushion offered in State Farm's home insurance policies means that if you had selected $200,000 in dwelling coverage, the carrier would provide an additional $40,000 toward a rebuild of your home's structure if necessary. While customers can get this cushion from Allstate as well, they have to pay more for it, while State Farm's is included.
Another advantage of State Farm's home insurance policies is that some of them offer ordinance or law coverage, which covers any costs necessary to make modifications to your home so it complies with current building codes. Residents who live in older buildings may need to depend on this coverage at some point. Though ordinance or law coverage is available from Allstate, customers may pay extra for it.
Optional Home Insurance Coverage: Allstate vs. State Farm
In terms of optional coverage, Allstate and State Farm have similar offerings, depending on your location. Both carriers typically provide the following additional home insurance coverage options:
- Service line coverage: Pays to repair underground power lines, water lines, or utility lines on your property if they get damaged or destroyed by a covered peril.
- Identity theft coverage: Pays for the costs of recovering your identity if it gets stolen.
- Personal injury liability coverage: Pays for the costs of legal defense and settlements in case you get sued by a third party for libel, slander, or similar civil offenses.
- Water and sewer backup coverage: Pays for the costs of cleanups and damage to your property in case of a sewer or drain backup or a sump pump failure.
- Green-efficient improvements: Allows customers to upgrade to energy-efficient and more eco-friendly materials after an approved claim for property damage.
- Extra valuables coverage: Increases coverage limits for valuable items such as collectibles, furs, artwork, jewelry, etc.
One additional coverage option offered by State Farm but not Allstate is equipment breakdown coverage. This coverage can reimburse a homeowner for expenses related to the covered breakdown of cooling or heating units or other systems within the home. Keep in mind that all coverage options are subject to your location.
Home Insurance Availability: Allstate vs. State Farm
Both Allstate and State Farm offer homeowners insurance in most areas of the U.S. However, both carriers have states in which they don't offer coverage currently.
| Home Insurance Company | States Where Home Insurance Is Not Available |
|---|---|
| Allstate | California, Connecticut, Florida, New Jersey |
| State Farm | California, Massachusetts, Rhode Island |
Allstate vs. State Farm Home Insurance Perks
Both Allstate and State Farm offer exclusive perks for their customers. Allstate's upgraded home insurance packages offer the benefit of Claim RateGuard, which protects customers from an increased home insurance premium after filing a claim. The benefit also provides a 5% return to customers after each claims-free year.
Allstate also offers Deductible Rewards, which provides customers with a $100 discount toward their deductible upon signing up and an additional $100 for each claims-free year. Allstate's Deductible Rewards perk caps the maximum benefit at a $500 discount toward a deductible.
State Farm offers a service called Ting in certain areas, which is a smart device that sends customers alerts about electrical system issues that could potentially result in fires if left untreated. The carrier also offers a free ADT smart-home security system in certain areas.
Professional monitoring services are available at a discounted rate for customers in these states as well. Customers who use the professional monitoring service can be rewarded with a 6% discount on their home insurance through State Farm.
Allstate vs. State Farm Homeowners Insurance Rates
The current national average cost of home insurance is $1,915 per year, and both Allstate and State Farm's prices exceed this. Allstate is known for being a bit pricier, and its home insurance policies are no exception. The carrier's average cost for home insurance is $2,205 annually, while State Farm's home insurance policies average $1,935 annually.
These average costs were calculated using a sample home insurance customer with no recent claims and good credit who purchased a policy with $300,000 in liability coverage, $300,000 in dwelling coverage, and a $1,000 deductible. However, State Farm continued to come out on top in terms of pricing regardless of the sample dwelling coverage limit tested.
State Farm vs. Allstate Home Insurance Rates by Dwelling Coverage Limit
| Dwelling Coverage | State Farm Annual Rate | Allstate Annual Rate |
|---|---|---|
| $200,000 | $1,515 | $1,590 |
| $300,000 | $1,935 | $2,205 |
| $400,000 | $2,270 | $2,810 |
| $500,000 | $2,720 | $3,430 |
Taking the $500,000 dwelling coverage limit example, Allstate's rates were a staggering 21% higher than State Farm's. However, Allstate offers a much longer list of coverage discounts than State Farm. Considering this, customers may still end up finding cheaper overall policy costs from Allstate than State Farm, provided they qualify for any of the available discounts.
Allstate vs. State Farm Home Insurance Discounts
Allstate and State Farm each offer several home insurance discounts for customers. However, Allstate seems to have the advantage here, as the carrier advertises quite a few more discounts on its official website than State Farm does.
| Allstate offers home insurance discounts: | State Farm offers home insurance discounts: |
|---|---|
| Installing protective devices in the home against fire damage and theft | Taking measures to protect the home against windstorm damage |
| Being a customer who is a nonsmoker | Remaining claims-free for a few years |
| Being a customer who does not have a mortgage | Bundling home insurance with auto insurance through State Farm |
| Being a customer who is a senior or a retiree | Updating your home's plumbing and/or wiring systems |
| Making all premium payments on time | Owning a home with deadbolt locks and/or fire extinguishers |
| Making one upfront payment for the entire year's premium | Installing security systems, sprinkler systems, smart-home monitoring systems, etc. |
| Bundling home insurance with auto insurance through Allstate | Owning a home with an impact-resistant roof |
| Making the switch to Allstate from another insurance provider | |
| Enrolling in autopay | |
| Being a new homeowner | |
| Remaining an Allstate customer for a few years | |
| Remaining claims-free for a few years | |
| Purchasing a home with new construction | |
| Taking measures to protect the home against windstorm damage | |
| Applying for home insurance at least a week in advance |
An independent insurance agent can further help you compare the home insurance discounts offered by Allstate and State Farm.
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Allstate vs. State Farm Home Insurance Customer Experience
State Farm seems to have the advantage in terms of customer complaints, as the carrier had fewer customer complaints to state regulators than typically expected of a business that size.
Allstate, however, was determined to have received more complaints than expected during the observed period. This data was compiled by the National Association of Insurance Commissioners over a three-year study.
In terms of claim satisfaction, State Farm scored a bit above the national average in J.D. Power's recent property claims satisfaction study, while Allstate scored slightly below average.
State Farm and Allstate each have mobile apps available for customers. Through these apps, policyholders can file and track claims, pay bills, and look up their coverage information. Allstate's mobile app has a bonus perk of a Digital Footprint, which allows customers to track breaches and find out which companies have access to their personal data.
Both Allstate and State Farm have user-friendly websites that allow customers to easily pay their premiums, file and track claims, and get quotes for a new policy. State Farm offers a virtual chatbot on its website, while Allstate offers a 24/7 live chat with a representative through the website. Both carriers also provide email and phone customer service.
State Farm vs. Allstate Homeowners Insurance: The Bottom Line
There are benefits and drawbacks to the home insurance offered by both Allstate and State Farm. While State Farm has cheaper average rates, Allstate offers far more discounts, which could mean rates end up being cheaper for customers once savings are applied.
State Farm has the edge in terms of claims satisfaction, but Allstate offers a better customer service feature on its website. Coverage territories are pretty much equal between the carriers, with Allstate offering home insurance in just one less state than State Farm.
Overall, it's always a good idea to shop and compare policies with the help of a local independent insurance agent. Your agent can provide you with quotes and more information about the homeowners insurance offered by both Allstate and State Farm, as well as other carriers in your area.
They'll help you make an informed decision about which carrier offers the best home insurance for you. And down the road, your agent can help you file home insurance claims and update your coverage as necessary.
https://www.nerdwallet.com/article/insurance/allstate-vs-state-farm-home-insurance