Farmers vs. Allstate: Home Insurance Comparison

While comparing Farmers vs. Allstate homeowners insurance, MoneyGeek found that Allstate outshined Farmers in affordability, customer satisfaction and financial stability.

With Allstate, you may pay roughly $4,672 per year for homeowners insurance with $500K dwelling coverage. Meanwhile, Farmers offers a policy with similar dwelling coverage at an average of $8,040 per year, but cost should not be your only priority.

Our comparative analysis can help you determine which company is best for you.

We found that Farmers and Allstate both have above-average customer service, but Allstate outperforms Farmers for service, stability and affordability. Farmers has more discounts to help you lower insurance costs, while Allstate offers cheaper rates and more optional coverages. It is also more widely available. The table below can help you compare the two companies.

Based on our analysis of quotes from both insurers, Allstate’s average baseline premium is cheaper, costing $1,911 per year vs. Farmers’ average of $2,228 per year.

These figures are just the average cost of home insurance. Your actual rate may change based on certain factors, such as your home’s location and construction type.

Insurance companies consider various factors when determining the annual cost of home insurance. These include your home’s location, dwelling coverage amount, personal property amount, credit score, claims history, deductible and endorsements. However, your dwelling coverage amount and location tend to have the greatest impact on your premiums.

Dwelling coverage goes toward the cost of damages to the actual structure of your home due to a covered peril. Your dwelling coverage limit should reflect the current value to rebuild your home.

By comparison, Allstate offers cheaper rates than Farmers for policies based on dwelling coverage, from the baseline amount of $100K to $3 million.

Use our table below to see how dwelling coverage affects the cost of homeowners insurance.

The cost of homeowners insurance can vary widely by state. Farmers offers its lowest average baseline premium in Alabama at $324 per year and charges its highest premium in Colorado at $6,207 per year. Meanwhile, an average Allstate homeowners policy is cheapest in Hawaii at $446 per year and most expensive in Michigan at $3,451 per year.

See how much you’ll pay for homeowners insurance with Farmers or Allstate based on your state using the table below.

While it’s important to prioritize affordability when shopping for a homeowners policy, you should also look into an insurer’s customer service. Getting efficient service while submitting and processing a claim can give you peace of mind during a stressful situation.

Based on our analysis, both Farmers and Allstate have strong customer service. However, Allstate earned slightly higher ratings in customer satisfaction, financial stability and affordability than Farmers.

Typically, standard homeowners insurance includes dwelling coverage, personal property coverage, living expense insurance and liability insurance. You can purchase optional coverages if you want additional protection.

Allstate offers a wider range of coverages, with nine available options, while Farmers has seven. Both companies only offer the most common add-on coverages.

Farmers has some add-on coverages that aren’t offered by Allstate, like matching coverage and contents replacement cost. The former covers up to $30,000 in costs to replace existing undamaged property with similar materials that are used to replace covered damaged property, while the latter covers personal property at replacement cost.

Allstate offers home rental, cyber event or ID theft, backup of sewer or drain and mold and yard and garden coverage, all of which are not available with Farmers. These optional coverages can help you avoid spending too much out-of-pocket.

We collected this information by checking each insurer’s website, but there might be other options available.

Qualifying for discounts is a smart way to reduce insurance payments. Farmers is our winner for this category because it has 13 available discounts for its homeowners insurance policies, while Allstate only has 11. They both offer the same common discounts, but Farmers has more unique discounts.

Farmers offers discounts that Allstate does not, such as paperless, pay-in-full, affinity, roofing material and earthquake discounts. These can help you get savings based on your chosen payment method, professional association or materials used in your home.

Allstate provides loyalty, homebuyer and early payment discounts that are not available with Farmers. These discounts are beneficial if you stay with Allstate, are a recent homebuyer or prefer signing up for a new policy before your existing one expires.

We gathered this information on each company’s website, but the companies may have more discounts that are not advertised.

If you’re still undecided between Farmers vs. Allstate homeowners insurance, it’s wise to explore the best homeowners insurance companies based on your specific needs and situation.

Remember that how much you’ll pay for homeowners insurance may vary depending on numerous factors, including the cost of repairing your home. Use our homeowners insurance calculator to obtain a more accurate estimate of your premium.