Allstate vs Farmers: Which Homeowners Insurance is Better?

With an 85/100 score, Farmers is ranked 19th in the country for home insurance, and Allstate is ranked 8th with a 90/100 score. MoneyGeek evaluated the insurers differences to help find the best option.

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeeks Head of Insurance. He has been studying the insurance market for more than five years, doing his own research and making content that is specific to each type of buyer. He has been quoted in several insurance-related publications, including [CNBC](https://www. cnbc. com/2020/04/15/cant-keep-up-with-insurance-premiums-heres-what-to-do. html), [NBC News](https://www. nbcnews. com/business/autos/flooded-cars-are-problem-their-owners-future-car-buyers-n1278493) and [Mashable](https://mashable. com/article/tesla-insurance-rates). A bachelor’s degree from Boston College and a master’s degree in economics and international relations from Johns Hopkins University are what Fitzpatrick has to offer. He really wants to use his knowledge of insurance and economics to make financial topics clearer and help people feel good about the choices they make with their money.

Ashley Jacobs has worked in the personal finance space for over 12 years. She started a consulting business that edits content for websites about money after working for a top personal finance blog for almost ten years. Her works have been featured on Yahoo! News, U. S. News & World Report and Business Insider. Jacobs earned her bachelor’s degree in communication from the University of California, Santa Barbara.

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeeks Head of Insurance. He has been studying the insurance market for more than five years, doing his own research and making content that is specific to each type of buyer. He has been quoted in several insurance-related publications, including [CNBC](https://www. cnbc. com/2020/04/15/cant-keep-up-with-insurance-premiums-heres-what-to-do. html), [NBC News](https://www. nbcnews. com/business/autos/flooded-cars-are-problem-their-owners-future-car-buyers-n1278493) and [Mashable](https://mashable. com/article/tesla-insurance-rates). A bachelor’s degree from Boston College and a master’s degree in economics and international relations from Johns Hopkins University are what Fitzpatrick has to offer. He really wants to use his knowledge of insurance and economics to make financial topics clearer and help people feel good about the choices they make with their money.

Ashley Jacobs has worked in the personal finance space for over 12 years. She started a consulting business that edits content for websites about money after working for a top personal finance blog for almost ten years. Her works have been featured on Yahoo! News, U. S. News & World Report and Business Insider. Jacobs earned her bachelor’s degree in communication from the University of California, Santa Barbara.

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. On the other hand, Farmers has a policy that covers homes similarly and costs an average of $8,040 per year. However, price shouldn’t be your only concern.

Hey folks! Choosing the right homeowners insurance is so important to protect your home and valuables. In this article, I’ll compare Allstate vs Farmers homeowners insurance to help you decide which is best

As two of the largest insurers nationwide, Allstate and Farmers both offer comprehensive policies. But there are some key differences to consider in terms of cost, discounts, customer service and more.

I’ll overview how their coverage, rates, discounts, ratings and availability stack up. I’ll also provide my recommendation on which company wins out overall. My goal is to make this super easy to understand so you can make the right call!

Allstate Homeowners Insurance Overview

First up is Allstate which is one of the most recognized insurance brands in the U.S.

Pros

  • Established national company with strong financial backing
  • Broad coverage options and add-ons
  • Competitive rates and many discounts

Cons

  • Mixed customer satisfaction ratings in reviews
  • Complaints about policy rate hikes after renewal

Allstate’s homeowners policies feature typical coverages like

  • Dwelling coverage
  • Other structures coverage
  • Personal property coverage
  • Loss of use
  • Personal liability
  • Medical payments

You can also add options like water backup protection, identity theft, and equipment breakdown coverage. Bundling your homeowners with auto insurance can score you a nice multi-policy discount too.

Farmers Homeowners Insurance Overview

Next up is Farmers insurance, which focuses on home and auto insurance products.

Pros

  • Wide selection of discounts to lower premiums
  • Highly rated claims satisfaction and fast payouts
  • Available in 49 states nationwide

Cons

  • Limited online tools compared to some competitors
  • Mixed reputation for customer service

Farmers homeowners insurance includes standard coverages such as:

  • Dwelling protection
  • Other structures
  • Personal property
  • Loss of use
  • Personal liability
  • Medical payments

Additional options include jewelry insurance, ID theft, home systems protection, and service line repair coverage.

Cost of Homeowners Insurance: Allstate vs Farmers

When it comes to cost, Allstate tends to beat out Farmers with cheaper average premiums:

  • Allstate: $1,583 per year
  • Farmers: $1,604 per year

However, pricing varies a lot based on your property, location and specific details. I always recommend gathering quotes from each company to compare apples-to-apples. Make sure you enter the same coverages and limits to see who offers the best rate for your situation.

Bundling your home and auto insurance with the same provider is a smart way to save with both Allstate and Farmers too.

Discounts – Allstate vs Farmers

Next let’s look at the discounts each company offers to lower your premiums:

Allstate Discounts

  • Welcome Discount – Up to 25% off your first year
  • Claim Free Discount – Up to 25% off for no recent claims
  • Early Signing Discount – Up to 25% off for signing early
  • Responsible Payer Discount – Up to 20% off for on-time payments
  • Protective Devices Discount – Up to 10% off for alarms, etc.
  • Multi-Policy Discount – Up to 10% off for bundling home and auto
  • Paperless Discount – Up to 5% off for paperless billing

Farmers Discounts

  • Claims Free Discount – Up to 30% off for no recent claims
  • Companion Policy Discount – Up to 5% off for bundling home and auto
  • GroupSelect Discount – Up to 10% off for qualifying groups
  • Loss Mitigation Discount – Up to 20% off for protective home upgrades
  • Mature Homeownership Discount – Up to 10% off for renewing with Farmers
  • New Home Discount – 10% off for newly constructed homes
  • Payment Discounts – Up to 10% off for annual or payroll deduction

Farmers offers a longer list of discounts overall, but Allstate also provides plenty of savings opportunities. Make sure to ask about all possible discounts when getting your quote!

Customer Satisfaction – Allstate vs Farmers

Now let’s see how Allstate and Farmers compare when it comes to customer satisfaction ratings and reviews:

  • J.D. Power: Allstate and Farmers both earn 3 out of 5 stars
  • BBB: Allstate is A+ rated, while Farmers has a B rating
  • NAIC Complaint Index: Farmers scores 0.73 vs Allstate’s 2.70

Based on these ratings, Allstate appears to have a slight edge in terms of service quality and customer satisfaction.

Some common complaints for Allstate relate to policy rate hikes at renewal time. For Farmers, customers often cite unexpected claim denials and lowball settlement offers.

Availability – Allstate vs Farmers

In terms of availability nationwide:

  • Allstate agents are located in all 50 states
  • Farmers is available in 49 states nationwide

So no matter where you live, you’ll likely have access to quotes and policies from both insurers. The exception is that Farmers does not currently operate in New York.

If you live in New York, Allstate may be more convenient as your only option between these two large carriers.

My Recommendation – Allstate vs Farmers

In my opinion, Allstate just barely edges out Farmers overall for homeowners insurance.

Allstate tends to have slightly lower premiums on average compared to Farmers. Allstate also scores a bit higher for financial strength and customer satisfaction based on third-party ratings.

However, Farmers isn’t too far behind. They offer a great range of discounts that can significantly lower your rates. Their claims process also gets high marks from policyholders.

To wrap it up, here are a few key points to consider:

  • Cost – Allstate offers cheaper average rates but compare quotes.
  • Discounts – Farmers has more ways to save.
  • Service – Allstate gets slightly better ratings but both are solid.
  • Availability – Both are national except Farmers does not serve NY.

The best option comes down to your budget, location, and specific coverage needs. I recommend getting personalized quotes from both Allstate and Farmers before deciding. Then choose the one that provides the features you want at a price you can afford.

Frequently Asked Questions

Does Allstate have better rates than Farmers?

On average, Allstate tends to have slightly lower homeowners insurance rates compared to Farmers. But pricing varies significantly based on your property, location, and other individual factors. The only way to find out who offers the most affordable rates for your situation is to compare quotes directly from each company.

Which has better discounts, Allstate or Farmers?

Farmers offers a longer list of homeowners insurance discounts compared to Allstate. Key savings opportunities with Farmers include multi-policy, claims-free, mature homeownership, protective devices, and more. Allstate also provides many ways to save, just not quite as many discounts overall.

Is Allstate or Farmers rated higher by JD Power?

J.D. Power gives Allstate and Farmers the exact same 3 out of 5 star rating for customer satisfaction. This puts the two insurers on equal footing in terms of J.D. Power’s assessment of their service quality and ability to meet customers’ expectations.

Does Allstate have better financial strength than Farmers?

Allstate and Farmers both have strong financial backgrounds and claims-paying ability, according to ratings from agencies like A.M. Best. However, Allstate ranks slightly higher in terms of financial strength based on metrics like policyholder surplus and debt-to-capital leverage. But overall, consumers can feel confident in the financial standing of either insurer.

Is Allstate BBB accredited but not Farmers?

Yes, Allstate has earned A+ accreditation and an overall 4 out 5 star rating from the Better Business Bureau (BBB). Farmers is not currently BBB accredited and has a B rating. BBB grades reflect factors like transparent business practices and proper complaint resolution. The higher BBB score gives Allstate a slight reputational edge.

Does one have better coverage than the other?

The breadth of coverage is similar between Allstate and Farmers. Both offer standard homeowners policy features like dwelling protection, personal liability, medical payments, etc. Unique options are also available from each insurer, such as identity restoration coverage from Allstate and service line repair coverage from Farmers. Evaluate your specific insurance needs, but overall coverage selection is fairly even.

Are Allstate and Farmers available nationwide?

Yes, both Allstate and Farmers operate in 49+ states nationwide. Allstate writes homeowners insurance policies in all 50 states plus Washington D.C. The only exception is that Farmers does not currently serve New York. So Allstate has slightly wider availability. But overall, most homeowners will have access to both providers.

**How

Average Annual Homeowners Insurance Premium of Farmers vs. Allstate

This is 14 % less expensive .

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.

Which Company Is Cheaper Based on Dwelling Coverage Amount?

Damage to the structure of your home caused by a covered peril is covered by dwelling coverage. Your dwelling coverage limit should reflect the current value to rebuild your home.

Allstate, on the other hand, has lower rates than Farmers for policies that cover homes for up to $3 million, with a base amount of $100,000.

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

Allstate Dwelling Coverage Amount$100,000 Average Annual Premium$1,797
Farmers Dwelling Coverage Amount$100,000 Average Annual Premium$2,715
Allstate Dwelling Coverage Amount$250,000 Average Annual Premium$2,057
Farmers Dwelling Coverage Amount$250,000 Average Annual Premium$2,845
Allstate Dwelling Coverage Amount$500,000 Average Annual Premium$4,672
Farmers Dwelling Coverage Amount$500,000 Average Annual Premium$8,040
Allstate Dwelling Coverage Amount$750,000 Average Annual Premium$6,667
Farmers Dwelling Coverage Amount$750,000 Average Annual Premium$10,749
Allstate Dwelling Coverage Amount$1,000,000 Average Annual Premium$8,723
Farmers Dwelling Coverage Amount$1,000,000 Average Annual Premium$13,153
Allstate Dwelling Coverage Amount$2,000,000 Average Annual Premium$16,178
Farmers Dwelling Coverage Amount$2,000,000 Average Annual Premium$26,067
Farmers Dwelling Coverage Amount$3,000,000 Average Annual Premium$38,693
Allstate Dwelling Coverage Amount$3,000,000 Average Annual Premium$23,636

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