Allstate vs. State Farm: Which Homeowners Insurance Company Should You Choose in 2023?
Choosing between two of the most well-known insurance companies can be a difficult task. This Allstate vs. State Farm homeowners insurance analysis breaks down the differences between these providers to help homeowners decide on the right coverage for their needs.
State Farm and Allstate are two of the most recognizable names in the insurance industry, so it only makes sense that prospective customers in the market for a new homeowners insurance policy would consider both companies as potential options. While each insurance provider has plenty to offer, which one is the best choice for homeowners insurance?
Both are completely viable options, and comparing Allstate vs. State Farm homeowners insurance can come down to seemingly tiny details. However, those nuances can have a large impact on a policyholder’s experience and level of satisfaction, making it worthwhile to take a look at exactly how these companies stack up against each other. This way, customers can make the best decision for their particular needs and find a homeowners insurance policy that works for them.
How We Compared Homeowners Insurance Companies
Buying insurance is one of the most important financial decisions a homeowner can make, and while it may be tempting to choose the provider with the lowest rates, there are many other factors that are worth considering. When comparing Allstate vs. State Farm homeowners insurance, it can be useful to consider both companies’ capabilities from several angles.
- Reputation and customer reviews: Learning from past customer experiences can give homeowners a sense of what it’s like to work with an insurance company, and online customer reviews are some of the best sources of information available in that regard.
- Service area: An insurance company’s service area directly impacts availability, as homeowners who reside in areas where the company doesn’t offer coverage will be unable to purchase a policy from that provider.
- Coverage amount: Coverage limits dictate how much money an insurance company may pay out to a policyholder on an approved claim. These limits can vary across different types of coverage, and insurance providers may set caps that differ from other companies.
- Policy options: Insurance companies frequently allow customers to adjust the terms of their homeowners insurance policy to expand coverage, such as by adding endorsements that cover more perils and types of damage.
- Insurance premiums: Homeowners insurance costs can vary from one provider to another, and at times one insurance company can be significantly more affordable than another. Rates may also depend on a host of other factors such as the size and location of the home, coverage options, and claims history.
- Discounts: Homeowners may be able to take advantage of various discounts to lower their insurance rates. Although many companies offer such discounts, savings opportunities may be limited in some cases, whereas other providers can offer numerous discounts depending on the customer’s eligibility.
- Quote process: When shopping around for a good deal on homeowners insurance, prospective customers may find that insurance companies offer multiple ways to get a quote, such as online, over the phone, or with a local agent. Experiences can be very different across those options, though, and customers may prefer a more streamlined process so they can get a detailed and accurate quote as quickly as possible.
- Claims process: Filing a claim could be a relatively easy process with some companies, with a claim decision and, if approved, a payout in short order. Other companies may have a more drawn-out claims process, which could be a headache for policyholders.
- Deductibles: A deductible is the amount companies withhold from the total payout on a claim before delivering funds to policyholders. Insurance providers often give customers the option to choose from a range of deductible options. Deciding on a deductible may require homeowners to balance the short-term gains of lower insurance rates with the potential of a bigger claims payout sometime down the road.
- Additional policies: Homeowners may be interested in bundling different types of insurance together to get a lower rate on their insurance or just to simplify the task of staying on top of their various policies. Companies with a wider scope of policies available for purchase are better positioned to be that one-stop shop for customers.
- AM Best rating: An insurance company’s AM Best rating can serve as a good indicator of its financial health and stability. Providers that have received higher grades from the credit-rating agency may be more reliable in the long run.
1. Allstate vs. State Farm Homeowners Insurance: Reputation and Customer Reviews
When shoppers are looking at customer experiences through the lens of customer review sites, it becomes clear that both State Farm and Allstate have received some mixed feedback. In fact, online customer reviews can be found that represent the entire spectrum of experiences, from extremely positive to overly negative. Allstate homeowners insurance reviews submitted to Consumer Affairs reflect that dichotomy with some reviewers complaining that their claims were denied under circumstances they didn’t agree with—roof replacement claims were particularly contentious. Other customers praised the company’s insurance agents for their helpfulness and support along with the speedy resolution of their claims. Meanwhile, Allstate customers who posted negative reviews through the Better Business Bureau (BBB) expressed grievances with slow claim resolution times and, in some cases, slow responses from representatives.
Some State Farm customers reported similar complaints in their Better Business Bureau reviews, lamenting the poor communication they experienced with their insurance agents. Many of the negative State Farm homeowners insurance reviews posted on the Consumer Affairs website mirrored complaints from Allstate customers, particularly regarding denied claims on roof repairs. On the other hand, other customers lauded the company for how quickly it approved their claims and paid out their funds. Even so, the number of positive reviews was slightly lower compared with Allstate. In addition, while both State Farm and Allstate have received impressive “A” BBB ratings, neither company is accredited with the organization, though.
It’s worth noting that online customer reviews can gravitate toward negative feedback, as unhappy customers may be more likely to publicly post about their experiences with an insurance company. In addition, when looking at the customer satisfaction ratings highlighted on these sites, prospective policyholders may want to remember that they often reflect reviews from customers who are sharing their experiences with various insurance products, not exclusively homeowners insurance. Negative reviews from auto insurance customers, for instance, would be factored into those overall ratings even though they may not have much bearing on what experience a homeowners insurance policyholder could expect with the same company.
Verdict: Both companies have received mixed feedback from customers on online customer review sites, with reviews ranging from explicitly negative to more positive. In general, Allstate had a larger number of positive reviews, though. While both companies have an impressive “A” grade from the Better Business Bureau, neither is accredited with the organization.
2. Allstate vs. State Farm Homeowners Insurance: Service Area
Homeowners in many states are likely to find that State Farm and Allstate are viable options for their homeowners insurance needs, as both providers offer this type of coverage in most areas of the country. In fact, both companies have service areas stretching across 49 states and Washington, D.C., which is very impressive for any insurance provider. In addition, the lone coverage gap in their otherwise nationwide footprint is the same as well: California is the only state in the country where homeowners insurance is not available from either company. State Farm and Allstate stopped offering homeowners insurance in California in 2023 due to the increased risk of wildfire.
With both companies having such similar service areas, making a clear distinction between the two can be difficult. That being said, it may be worth noting that State Farm agents may be more widely available to customers throughout the company’s service area. As such, homeowners looking for in-person assistance could be more likely to find a local agent in their area with State Farm.
Verdict: Both State Farm and Allstate have very large service footprints, with coverage available in 49 states and Washington, D.C. The lone exception in both cases is California, as both companies have suspended property insurance offerings in that state due to the threat of wildfire.
3. Allstate vs. State Farm Homeowners Insurance: Coverage Amount
Most homeowners will likely find that either State Farm or Allstate can meet their coverage needs when it comes to standard terms such as dwelling and personal property coverage. Both companies will also facilitate the purchase of dwelling coverage that exceeds typical coverage limits, which may be necessary for very expensive homes that would require a great deal of money to rebuild in a worst-case scenario.
Our research did find that coverage limits on some forms of coverage (such as loss of use) can depend on the home’s location, but that won’t always be the case. Even with these variables to consider, State Farm offers a wide range of options for the various types of coverage included in a homeowners insurance policy. For instance, policyholders can insure their personal property and belongings for up to 150 percent of their dwelling coverage amount, which is quite high compared with the offerings of other companies. In fact, personal property coverage on a State Farm policy starts at 75 percent of the dwelling percentage, whereas that’s the highest amount that an Allstate customer can select for this type of coverage. As such, State Farm policyholders may be able to insure their belongings for a higher amount.
For example, someone with a home insured for $350,000 could potentially have $525,000 of personal property coverage at 150 percent of their dwelling coverage. Meanwhile, someone who has coverage for their personal property at 75 percent of their dwelling coverage would only have $262,500 to work with. In addition, State Farm customers have the option to purchase up to $1 million of personal liability coverage if they prefer to have higher amounts of financial protection than what comes standard in a homeowners policy in the event they are liable for damages or injuries to others. Medical payment to others limits tend to be higher with State Farm as well, which can help pay for a guest’s medical bills if they are injured on the property, regardless who is at fault.
Verdict: Coverage amounts offered by Allstate and State Farm may be comparable for homeowners who don’t require higher limits on certain types of coverage. While coverage options can depend on a property’s location, homeowners may find that they can more readily purchase higher coverage limits on personal property, personal liability, and medical payment to others coverage, among other options, through State Farm.
Winner: State Farm
4. Allstate vs. State Farm Homeowners Insurance: Policy Options
Homeowners who want to customize their insurance policy to suit their needs will find ample opportunity to do so with Allstate and State Farm. Both companies offer a wide variety of endorsements and policy options to expand coverage beyond what’s included in a standard homeowners insurance policy. For instance, Allstate and State Farm customers can purchase endorsements that provide extended roof coverage, identity theft protection, and the option to replace covered items with energy-efficient alternatives if they are damaged by a covered peril.
Homeowners who need highly specialized coverage due to the location of their property may be interested in endorsements covering ground movement such as earthquakes or mine subsidence, which both companies offer in certain areas of the country. Allstate’s endorsements are slightly more impressive, though, because of the options available for water damage. While both providers have a water backup endorsement, Allstate often gives customers in certain areas of the country the option to purchase coverage for up to $50,000, which is very high for this type of add-on. In addition, the company offers flood coverage either through the National Flood Insurance Program or as a private flood insurance policy, which is typically not the case for this type of insurance; this makes Allstate one of best flood insurance companies to consider.
Verdict: Policyholders with either Allstate or State Farm can build out their coverage by purchasing endorsements ranging from identity theft protection to extended roof coverage. Depending on a property’s location, homeowners may also be able to purchase earthquake, mine subsidence, and other specialized forms of coverage. Allstate does stand out due to the availability of a private flood insurance option and the high $50,000 maximum coverage amount on water backup endorsements.
5. Allstate vs. State Farm Homeowners Insurance: Insurance Premiums
Insurance premiums can often vary significantly from one state to another, and that’s certainly the case with both State Farm and Allstate. Homeowners living in some areas of the country may be offered much lower rates than those living in other states, even when sharing many of the same criteria that would otherwise influence insurance premiums. When comparing Allstate vs. State Farm prices, it may be worth taking into account those geographical differences.
With that being said, our research has found that in several cases, Allstate’s rates tend to be a bit higher than State Farm’s rates. In fact, as noted in our Allstate insurance review, the company’s rates on homeowners insurance can be on the high side in general. For instance, New York residents may face higher insurance premiums on a homeowners insurance policy from Allstate compared with a policy from State Farm. Even so, both companies could be considered to be one of the best homeowners insurance providers in New York.
However, it could be possible in some cases that the separation in price point is, in some part, due to State Farm’s relatively low insurance rates rather than Allstate setting high premiums on homeowners insurance. Our research turned up multiple markets around the country where State Farm is one of the most affordable options available, including Michigan, South Carolina, and Arizona, among other states.
Verdict: Insurance rates for both companies can vary depending on the policyholder’s location. However, Allstate’s rates tend to be a bit higher in many states, which may mean that State Farm is the more affordable option for a wider range of homeowners across the country.
Winner: State Farm
6. Allstate vs. State Farm Homeowners Insurance: Discounts
State Farm does not offer too many discounts on its homeowners insurance policies, giving customers only a couple of ways to lower their rates. Customers who want to bundle their homeowners insurance with an auto or life insurance policy can save money on the total cost of their insurance. In addition, State Farm offers a discount to homeowners who install certain security or safety devices, such as smoke detectors or burglar alarms, in their homes. Policyholders may also receive a discount on homes with reinforced roofs built using impact-resistant materials, but that discount may only be available in select states.
Meanwhile, Allstate customers have many ways to save if they are eligible for the company’s various discounts. Allstate offers discounts to customers who enroll in autopay, have just purchased a new home, switch insurance providers to Allstate, or pay their premiums in full and on time. These discounts can be very generous at times as well. For instance, the company’s claim-free discount could give customers up to 20 percent off the price of their homeowners insurance. Allstate’s bundling options are varied as well, especially when it comes to vehicle coverage. Allstate customers can bundle their homeowners insurance with auto, motorcycle, or off-road ATV policies, among other options. This flexibility provides more opportunities for customers to take advantage of discounts that could save them money on their insurance needs.
Verdict: Discount opportunities on a homeowners insurance policy are somewhat limited with State Farm, as the most widely available discounts include policy bundles and home security system discounts. Allstate, meanwhile, offers a wider range of homeowners insurance discounts. They are fairly generous on their own, but they can maximize savings when combined. In addition, Allstate customers can bundle a variety of policy types, providing more opportunities to lower their insurance costs.
7. Allstate vs. State Farm Homeowners Insurance: Quote Process
Customers looking to get a quote from Allstate or State Farm will have a few different options to consider, so no matter if homeowners prefer to speak to a representative or use an online quote on their own, they are free to do so. As noted earlier, State Farm agents may be more readily available than Allstate agents, but that depends on the homeowner’s location.
When comparing online quote processes, prospective customers may find that their experiences are fairly similar with Allstate and State Farm since both companies offer an easy-to-use online platform. After providing some information regarding the property—its size, age, and building materials, among other factors—and themselves—claims history, employment status, and number of occupants—homeowners can get an estimate on an insurance policy. They also have the option to adjust coverage limits, change deductibles, and add endorsements before finalizing their quote.
One point of distinction that’s worth mentioning is that an Allstate homeowners insurance quote may not always be available online for all locations within the company’s service area. For instance, although Allstate offers property insurance in North Dakota—and could even be considered one of the best homeowners insurance companies in North Dakota—it does not offer online quotes for North Dakota ZIP codes. This is less likely to occur when homeowners are getting a State Farm homeowners insurance quote, whether it’s in North Dakota or elsewhere, barring scenarios involving coastal areas that are at high risk for hurricanes and flooding. Insurance companies typically require homeowners to speak directly with an agent to get a quote in those cases anyway, though.
Verdict: Getting a quote from either company is relatively easy for homeowners, with comparable options that include going online, speaking to a representative over the phone, or meeting with a local agent. However, Allstate may not be able to give an online insurance quote for all ZIP codes in the company’s service area, whereas that’s less likely to occur with State Farm.
Winner: State Farm
8. Allstate vs. State Farm Homeowners Insurance: Claims Process
Whether a homeowner prefers to file insurance claims online, over the phone, with a local agent, or through a separate mobile app, all of those options will be available to them if they choose Allstate or State Farm for their homeowners insurance needs. This may be an ideal setup for many homeowners, since those who want to work directly with a claims representative from the outset can speak to one over the phone or head down to their local branch office to meet with an agent in person. This approach gives policyholders more opportunities to ask questions about any steps in the process that may be unclear and better understand approval timelines and the claims process in general.
Alternatively, some policyholders may prefer a digital approach that allows them to upload photos of property damage, receipts for damaged or stolen possessions, and other supporting documents. They may also value a self-directed and streamlined claims process that doesn’t require them to speak directly with an agent for many steps. In those cases, having their own dedicated online account—which both companies offer—may be the ideal way to file a claim. Allstate and State Farm also each have their own mobile apps that allow customers to submit and track claims. However, State Farm’s app is especially noteworthy for its award-winning design and interface, as the company was recognized by the 2019 Mobile Web Awards, receiving “Best Insurance Mobile App” and “Best Bank Mobile App” distinctions.
Verdict: Whether a homeowner chooses Allstate or State Farm for their homeowners insurance needs, they will find that there are several ways to submit a claim. Both companies allow policyholders to file claims online, over the phone, with a local agent, or through a dedicated mobile app. State Farm’s app-driven claims experience gives the company a slight edge, with the company having won awards for its mobile app design.
Winner: State Farm
9. Allstate vs. State Farm Homeowners Insurance: Deductibles
Deductible options are not always consistent across all states and locations when it comes to homeowners insurance, and that’s true of Allstate and State Farm. When getting a quote from either company, prospective customers will likely find that deductible ranges can vary depending on their location. However, Allstate’s deductibles tend to cover a wider range of options between $500 and $5,000. In addition, homeowners may have the option to select a percentage-based deductible, which is calculated based on the policy’s dwelling coverage limit. Those deductibles typically come out to 1 percent or 2 percent of the dwelling limit. As such, customers who prefer a lower deductible have relatively low options to consider. Those who want to lower their insurance premiums by choosing a higher deductible can do so without setting an excessively high deductible that could dramatically reduce any potential payout they might receive down the road.
State Farm’s deductibles, while also varied, are slightly more limited in scope, giving customers fewer options to mull over. In some cases, customers may only have a handful of options available that aren’t directly based on their dwelling limit. In addition, those deductibles could be somewhat high. For instance, Arizona residents can choose a percentage-based deductible or go with either a $5,000 or $10,000 option. Regardless of what option they choose, their deductible will likely be a fairly sizable amount.
It’s also worth noting that both companies may impose a separate deductible for wind or hail damage claims. The presence of these deductibles is dependent on the property’s location, and there appears to be a great deal of overlap between Allstate and State Farm in regard to which states have a separate wind or hail deductible.
Verdict: Policyholders can choose from various deductible options with State Farm and Allstate, although the exact deductibles available can change from state to state in both cases. Allstate’s deductibles offer a bit more flexibility overall, as policyholders can choose from deductibles ranging from $500 to $5,000 or opt for a percentage-based deductible. Although State Farm has somewhat similar options available, they aren’t quite as numerous compared with Allstate, and they may be overly high in some cases.
10. Allstate vs. State Farm Homeowners Insurance: Additional Policies
Being two of the largest insurance carriers in the country, both State Farm and Allstate offer a wide variety of insurance products for customers to consider in addition to homeowners insurance. Additional policies with both companies cover different areas ranging from vehicle and property insurance to business and life insurance. Regardless of which insurance provider a homeowner chooses, they will have the option to purchase such policies as rental or landlord insurance, boat insurance, mobile or manufactured home insurance, pet insurance, and umbrella insurance, among other options.
However, it’s worth noting that State Farm has a slightly wider variety of additional insurance policies to consider, such as specialized coverage options that may appeal to select demographics. For instance, the company offers farm and ranch insurance that can cover the structures, equipment, and even livestock found on a working farm. Such options may appeal to homeowners who have more unique living situations or are planning a change in the near future and want to be sure their insurance provider can accommodate whatever insurance needs may come up.
Verdict: Both companies offer a number of insurance policies beyond homeowners insurance, including various types of property, vehicle, life, and business insurance plans. However, State Farm has a slightly wider variety of options, such as farm and ranch coverage, that could appeal to more specialized interests. With that in mind, State Farm holds a slim advantage over Allstate in this area.
Winner: State Farm
11. Allstate vs. State Farm Homeowners Insurance: AM Best Rating
Both Allstate and State Farm have very high AM Best grades that fall in the range reserved for companies that have demonstrated a “superior” capacity to meet their financial obligations as insurance providers. Allstate’s A+ grade is very impressive in its own right and can provide plenty of peace of mind to homeowners who want to work with an insurance company that is financially stable and positioned to continue providing insurance coverage for years to come.
That being said, State Farm has received an even better grade from AM Best. The company’s A++ rating is the highest grade that an insurance provider can receive from the credit-rating agency, placing State Farm in pretty exclusive territory, as there are not many insurance companies that have been given an A++ rating by AM Best.
Verdict: Allstate’s AM Best rating is very high, with an A+ grade that signifies the company’s “superior” ability to meet its financial obligations. Even so, it trails State Farm and its A++ grade, which is the highest rating an insurance company can receive from the independent credit-rating agency.
Winner: State Farm
Verdict: State Farm is our pick for homeowners who want the most coverage for their money. However, Allstate is a great option, too, and may be very appealing to homeowners interested in lower deductibles, a wide variety of endorsements to choose from, and generous discounts.
Homeowners looking for a combination of low insurance premiums and high coverage limits may find State Farm to be the perfect fit for their homeowners insurance needs. The company’s rates tend to be on the low side for various markets throughout the country, and policyholders may find that they can increase limits on personal property coverage and liability coverage to fairly high levels. State Farm also has the highest grade an insurance company can receive from AM Best, assuaging any concerns about the company’s long-term stability and reliability.
Not to be outdone, Allstate has plenty to offer homeowners as well, particularly if they are interested in expanding their coverage through endorsements. Allstate also offers a wide range of discounts to lower customers’ rates, and the various deductible options give homeowners even more flexibility balancing the cost of their insurance premiums with the size of a future claim payout. Customers looking for one of the best homeowners insurance companies really can’t go wrong with either option as they compare Allstate vs. State Farm. With all that being said, State Farm may be a better option for many homeowners who are primarily concerned with the overall cost of their insurance policy and the core coverage it provides.
Picking a homeowners insurance company can be tricky without first understanding what differentiates each provider and what factors are worth focusing on for homeowners. We’ve answered some of the most common questions customers have about homeowners insurance, so anyone shopping around for a new policy can put themselves in a better position to make a more informed choice.
Q. Is Allstate homeowners insurance inexpensive?
Allstate’s homeowners insurance rates vary depending on the location of the property, among many other variables. As such, the company’s premiums can be very affordable in some areas and somewhat more expensive in others.
Q. Do Allstate and State Farm homeowners insurance cover roof leaks?
Homeowners insurance typically covers roof leaks if they are sudden, accidental, and caused by a covered peril—for instance, if a tree branch falls during a storm and damages the roof. The amount of the deductible selected for a policy will influence the amount of the payout, though.
Q. Is homeowners insurance required?
According to the Insurance Information Institute, homeowners are not legally required to purchase property insurance, but their mortgage lender will likely insist they purchase a homeowners insurance policy before a home loan can be approved, as well as maintain a policy for the duration of the mortgage. In those situations, borrowers will need enough homeowners insurance to cover the cost to rebuild the entire dwelling in a worst-case scenario.
Q. Will bundling insurance lower my premium?
In many cases, homeowners can lower their insurance rates by bundling their homeowners insurance with other policies such as auto or life insurance. Bundling options can vary by insurance provider, though, and some companies may offer more generous discounts than others. Homeowners interested in these savings opportunities may want to consider the best home and auto bundles.
Q. How do features like trampolines and swimming pools affect my homeowners insurance policy?
Insurance companies often consider trampolines and swimming pools to be “attractive nuisances” that can raise the risk of receiving a liability claim. For instance, a neighbor’s kids could come onto the property without the policyholder’s approval to use their trampoline and wind up getting injured. This would expose the policyholder to a potential liability claim. As such, having a trampoline or pool on the property could lead to higher insurance rates.
Q. How do protective devices affect my homeowners insurance?
Insurance companies may offer discounts to homeowners who have protective devices like security systems and smoke alarms installed on their property. In fact, both Allstate and State Farm offer such discounts.
Q. Is Allstate and State Farm the same company?
No, Allstate and State Farm are separate entities with no connection other than both being major players in the insurance industry.