Allstate vs Farmers: Which Provides Better Homeowners Insurance?

Choosing the right homeowners insurance company is crucial to protecting your property and assets. Allstate and Farmers are two of the largest insurers in the U.S., but they have key differences in coverage, discounts, customer satisfaction, and more.

This comprehensive guide compares Allstate vs Farmers homeowners insurance to help you make the best choice.

Allstate Homeowners Insurance Overview

Allstate is one of the biggest insurance providers in the country, offering a full range of policies.

Pros

• Established national company with strong financial backing
• Broad coverage offerings and options
• Competitive rates and discounts

Cons

• Mixed customer satisfaction ratings
• Complaints about policy rate hikes

Allstate homeowners insurance includes standard 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, identity theft, and equipment breakdown protection. Bundling with auto insurance may qualify you for a multi-policy discount.

Farmers Homeowners Insurance Overview

Farmers insurance specializes in home and auto insurance products.

Pros

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

Cons

• Limited online tools and resources compared to competitors
• Mixed customer service reputation

Farmers homeowners policies feature typical coverages like:

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

Optional add-ons include coverage for jewelry, identity fraud, home systems protection, and service line repairs.

Cost of Homeowners Insurance: Allstate vs Farmers

On average, Allstate tends to offer slightly lower homeowners insurance rates than Farmers overall. However, pricing varies significantly based on your property, possessions, and location.

According to S&P Global data, the average annual premiums for Allstate and Farmers are:

When getting quotes, be sure to compare policy limits, deductibles, and discounts to find the best value. Bundling your homeowners and auto insurance with the same provider may also lower your overall insurance costs.

Discounts: Allstate vs Farmers

Both Allstate and Farmers offer a range of discounts to reduce homeowners insurance premiums:

Allstate Home Insurance Discounts

• Welcome Discount – Up to 25% off your first year’s premium
• Claim Free Discount – Up to 25% off for no claims on other policies
• Early Signing Discount – Up to 25% off for auto/home policyholders signing early
• Responsible Payer Discount – Up to 20% off for consistently on-time payments
• Protective Devices Discount – Up to 10% off for burglar alarms, fire alarms, etc.
• Multi-Policy Discount – Up to 10% off for bundling auto and home insurance
• Paperless Discount – Up to 5% off for paperless billing and documents

Farmers Home Insurance Discounts

• Claims Free Discount – Up to 30% off for no recent claims
• Companion Policy Discount – Up to 5% off for insuring auto and home together
• Farmers GroupSelectSM Discount – Up to 10% off for qualifying group affiliations
• Loss Mitigation Discount – Up to 20% off for protective home upgrades like security systems and fire-resistant materials
• Mature Homeownership Discount – Up to 10% off for renewing with Farmers continually
• New Home Discount – 10% off for newly constructed homes
• Payment Discounts – Up to 10% off paying annually or via payroll deduction

As you can see, Allstate and Farmers both offer significant savings for bundling policies, maintaining claims-free history, installing protective devices, and more. Compare all available discounts to find the best value.

Customer Satisfaction: Allstate vs Farmers

Independent customer satisfaction ratings provide useful insight into an insurer’s quality of service. Here’s how Allstate and Farmers compare:

• J.D. Power: Allstate and Farmers both earn 3 out of 5 stars for overall customer satisfaction.
• BBB: Allstate is rated A+ while Farmers has a B rating.
• NAIC Complaint Index: Farmers scores 0.73 compared to Allstate’s 2.70 index. Lower is better.

Allstate appears to have a slight edge in financial strength ratings from agencies like A.M. Best. But both companies receive generally positive reviews overall.

The main complaints for Allstate relate to policy premium increases and claim delays. Farmers’ customers commonly cite unexpected claim denials and unsatisfactory settlement offers.

Availability: Allstate vs Farmers

Nationwide availability is another important insurance consideration.

Allstate has agents in all 50 states plus D.C. Farmers is also available nationwide except for New York.

So no matter where you live, you’ll have the option to buy homeowners insurance from either provider. Allstate may be more convenient for New York residents specifically.

Bottom Line: Allstate vs Farmers Home Insurance

When choosing between Allstate and Farmers homeowners insurance, consider:

• Cost: Allstate tends to have lower average rates but shop around for quotes.
• Discounts: Farmers offers a longer list of ways to save.
• Service: Customer satisfaction ratings are similar between the two companies.
• Availability: Both operate in 49+ states but Allstate also serves New York.

Evaluate your specific needs, budget, and location. And compare personalized quotes from each insurer before deciding on the best homeowners insurance company for you.

Frequently Asked Questions about Allstate vs Farmers Home Insurance

Below are answers to some common questions consumers have when comparing Allstate and Farmers homeowners insurance.

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 to Choose Between Allstate vs Farmers

Follow these steps when deciding between Allstate and Farmers for your homeowners insurance:

• Review sample policy documents from each company to understand coverages, exclusions, and conditions.
• Research third-party customer ratings and complaints on sites like J.D. Power and BBB.
• Compare quotes for identical dwelling limits, possessions coverage, deductibles, and endorsements.
• Ask about all available discounts you may qualify for to lower premiums.
• Consider bundling your home and auto insurance with the same carrier.
• Choose the insurer that best fits your budget while meeting coverage needs.