Allstate Home Insurance Review: Pros & Cons, Ratings & More

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Overview of Allstate Home Insurance

Founded as an automobile insurance company in 1931, Allstate quickly established itself as an innovator: It introduced a system to rate driver safety, opened the first drive-in claims office, created a grant program to train educators to teach driver's ed, offered the first discounts to small-car owners and worked to pass landmark auto safety legislation. It has grown to offer insurance for auto, home, renters, motorcycle, business and life to some 16 million households, and it continues to innovate, offering a wide range of unique technological tools to its customers. Today, it's the second largest homeowners insurance company, with a market share above 8 percent (in 2019).

How Does Allstate Home Insurance Rate?

Financial Strength Rating

  • Source
    Rating
  • A.M. Best
    A+

Effective Date: January 2020

A.M. Best's Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. It is not a warranty of a company's financial strength and ability to meet its obligations to policyholders. View our Important Notice: Best's Credit Ratings for a disclaimer notice and complete details at http://www.ambest.com/ratings/notice.

Financial Strength is rated on a scale of D (poor) to A+ (superior). A rating notch of either a second "+" or a "-" indicates the gradation of financial strength within the category. We can't guarantee that the subsidiary of Nationwide Insurance rated here is the subsidiary that will underwrite your insurance policy. Check with your insurance agent and review A.M. Best's Financial Strength Rating Guide for more information.

Best's Credit Ratings™ are under continuous review and subject to change and/or affirmation. For the latest Best's Credit Ratings™ and Best's Credit Reports which include Best's Credit Ratings™), visit the A.M. Best website at http://www.ambest.com. See Guide to Best's Credit Ratings™ for explanation of use and charges.

Best's Credit Ratings™ reproduced herein appear under license from A.M. Best and do not constitute, either expressly or impliedly, an endorsement of MoneyGeek.com or its recommendations, formulas, criteria or comparisons to any other ratings, rating scales or rating organizations which are published or referenced herein. A.M. Best is not responsible for transcription errors made in presenting Best's Credit Ratings™. Best's Credit Ratings™ are proprietary and may not be reproduced or distributed without the express written permission of A.M. Best Company.

Pros and Cons of Allstate Home Insurance

Allstate

pros

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The optional Rate Guard feature can help you prevent your rate from increasing due to a claim.

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The Claims-Free Rewards program, which is an optional feature, rewards you at your renewal if you've had no claims during that policy period.

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Allstate boasts some the most home and auto policy options of any carrier in the country, so it is easy to bundle policies, including life insurance.

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Allstate offers many discounts that can be applied to your home insurance policy.

cons

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Overall customer satisfaction for Allstate home insurance policyholders is only "About Average" (a score of 3 out of 5), according to the 2019 J.D. Power U.S. Household Insurance Study - Homeowners Insurance.

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The default coverage for your personal property has been lower than that of many other carriers.

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The Additional Living Expenses, or Loss of Use, coverage is capped at a set percentage of the Dwelling coverage rather than covering the total loss incurred.

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The online quoting system allows you to schedule coverage for special items such as jewelry or furs, but won't allow you to see how much they are covered for if not scheduled.

Allstate Home Insurance Coverage

Allstate Home Insurance is one of the country's largest insurers, but this doesn't translate into anything that really stands out above the crowd in terms of policy features or benefits. In fact, some coverages, such as personal property and loss of use, are lower than average and not up to the level that one would expect from such a leader in the industry. However, Allstate's online quoting system is worth noting. It works to make everything as simple as possible by using graphics and pictures to explain home insurance terms and by offering home policy packages with tiers of coverage based on the price a client is willing to pay. This is in addition to allowing you to customize your quote with a la carte coverage options.

Homeowners Insurance Standard Coverage Options from Allstate

Allstate's home insurance policies include dwelling coverage with adjustable deductibles for all perils and for windstorm or hail; coverage for your other structures, such as detached garage; personal property coverage; an additional living expense or loss-of-use coverage in case you have to move out of your home while it is being repaired; liability protection for you and your family; and guest medical coverage, which is also known as a no-fault coverage.

Additional Coverage Options from Allstate

There are a number of optional coverages that are offered with most insurance company's home policies, and Allstate does make these available. But this company includes a number of additional, less-common coverages that people can elect to include in the policy as well, such as a protection against rate increases due to claims, or an extended coverage for the roof.

Available Discounts on Allstate Home Insurance Coverage

Allstate offers a number of methods to lower your home insurance premium. Some will remain for the life of the policy, such as the preferred payment method discount, while you can expect others to roll off over the first few years of the policy.

  • Type of Discount
    Description
  • Multi-policy discount
    Bundle two or more Allstate policies together, such as home and auto or home and life, and you could earn significant savings.
  • Easy pay plan
    An auto-pay program to pay your premium directly from your bank account will lead to a discount.
  • Claim-free discount
    Claims cost insurance companies money, so when you don't file claims, Allstate will reward you.
  • Early signing discount
    Many people only look to change insurance companies when their current policy is up for renewal. But if you plan ahead and switch over to Allstate before your current policy ends, you can receive a discount on your policy.
  • Home buyer discount
    If you buy a home that has just been built, you will get a new home discount. This discount can also be applied to other recent home purchases in certain situations.
  • Safe home discount
    Safety features such as a security system will qualify the home for an insurance discount.
  • Welcome discount
    You may be able to get a discount just for being a new customer at Allstate.
  • 55 and retired discount
    Allstate will reward you with a home insurance savings if you are older and spend your days away from a workplace.
  • Additional discounts
    You may receive additional savings if you live in a smoke-free home, have storm shutters, have a hail-resistant roof and more.

How to Make a Home Insurance Claim with Allstate

Allstate utilizes a multi-channel approach for claims, making it as easy as possible to start the process. It suggests that you gather as much information about the incident as you can but to not wait too long: The sooner you file the claim, the sooner Allstate can start work on it, so you don't have to have everything in hand before contacting the company. You can file a claim online, whether or not you have established an Allstate account, or you can use the Allstate Mobile app, call the 24-hour claims line or contact your agent directly.

How to Contact Allstate Home Insurance

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    CUSTOMER SERVICE PHONE NUMBER

    800-255-7828

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    CLAIM PHONE NUMBER

    800-255-7828

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About the Author


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