Allstate vs. State Farm Homeowners Insurance

By | August 30, 2021
Allstate vs. State Farm Homeowners Insurance

State Farm and Allstate are two of the largest homeowners insurance companies in the U.S. They are similar in many ways, with good financial ratings, multiple policy offerings and coverage in all 50 states. There are also some differences in what types of discounts they offer, and other features that might make a difference in which of these two companies will be your best choice to insure your home. Read on to find out more. 

Allstate vs. State Farm: Which is Better?

Allstate and State Farm homeowners insurance policies have many of the same features and coverages. Both have strong financial ratings from AM Best. Both offer discounts for people with multiple policies, such as having auto and homeowners insurance with the same company. 

However, there are a few factors that might make one or the other a better fit for your needs. 

For example, if you have made, or plan to make, improvements to your home, such as upgrading utilities, installing an impact-resistant roof, adding fire or smoke alarm systems, or installing automatic fire sprinklers might benefit from the discounts offered by State Farm. 

First-time homebuyers and those who have recently bought a newly constructed home might be eligible for Allstate’s discounts. Homeowners who switch to Allstate at least seven days before their current homeowners policy expires can save 10%. Those who sign up for automatic payments receive a 5% discount. 

Do Allstate and State Farm Cover Mold Damage or Removal?

State Farm specifies that a standard policy includes a minimum of $10,000 to identify and repair damage from mold and fungus. Allstate may cover mold if it’s the result of a burst pipe or other problem that happens suddenly and is immediately reported, but not if the mold grows over time from a lack of maintenance. 

Do Allstate and State Farm Cover Roof Leaks?

Both companies cover roof leaks as part of a standard policy, but with caveats. Allstate specifies that a leak caused by improper maintenance isn’t covered. State Farm will normally cover damage from a leak, but not the cost to repair the roof.

Do Allstate and State Farm Cover Termite Damage?

Termite damage isn’t normally covered by a standard homeowners insurance policy, regardless of the insurer. That’s because it’s generally considered to be something that could be prevented with proper maintenance.

Do Allstate and State Farm Cover Water Damage?

Allstate and State Farm both include coverage for sudden damage caused by something like a burst pipe or a failed washing machine hose as part of a standard homeowners policy. Water damage from a clogged drain or a failed sump pump is typically considered a lack of maintenance and is not covered. Flood damage isn’t included and requires a separate policy.

Do Allstate and State Farm Offer Homeowners Insurance Bundling?

Bundling, or purchasing your homeowners insurance from the same company as your auto insurance or other policy can save you money with either Allstate or State Farm.

Allstate Homeowners Insurance Information

Pros:

  • Allstate’s mobile app can store an inventory of your belongings
  • Receive a discount for paying on time or paying your full premium annually

Cons:

  • Pricier than most of the other insurance companies in our rating

Allstate insurance ties for fourth place in our rating of Best Homeowners Insurance Companies of 2021, scoring 3.8 out of 5 stars. It has an A+ rating from AM Best. The company has a robust app, where you can store your ID cards, request roadside assistance, and pay your premium., The app also gives you access to the Allstate Digital Locker. That allows you to create and store an itemized list of your personal property, which can help when submitting a claim. Policyholders can catalog their belongings and include photographs and videos with narration. Homeowners with Allstate can take advantage of discounts for automatic payments and continuing coverage year after year. 

State Farm Homeowners Insurance Information

Pros:

  • Coverage adjusts for increases in construction costs 
  • Discounts for roofs made from impact-resistant materials
  • Fire, smoke, or burglar alarms may help reduce premiums

Cons:

  • Does not offer as many discounts as Allstate

State Farm ties for fourth in our ratings of the Best Homeowners Insurance Companies of 2021. Like Allstate, State Farm scored 3.8 out of 5 stars. The company’s AM Best rating is slightly better than State Farm’s at A++. The standard homeowner’s policy covers your dwelling plus other structures on your property, personal belongings, loss of use if your property is damaged, and liability if someone other than a resident is injured on your property. If you’ve made certain improvements, such as installing alarm systems, automatic sprinklers, an impact-resistant roof, or upgraded utilities, might benefit from discounts.

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