State Farm vs Allstate Home Insurance at a Glance
| State Farm | Allstate | |
|---|---|---|
| AM Best financial rating | A++ | A+ |
| Founded | 1922 | 1931 |
| Coverage score (MoneyGeek) | 4.03/5 | 3.69/5 |
| Max bundling discount | ~20% | ~25% |
| Flood insurance add-on | Yes, in most states | No — separate NFIP/private policy required |
| Extra dwelling coverage cushion | +20% included by default | Available, but costs extra |
| NAIC complaints | Close to expected | Close to expected |
Figures reflect industry-wide averages compiled from multiple 2026 rate studies. Independent studies show conflicting results on which insurer has the lower average premium — always compare live quotes for your specific home and location.
See our full Editorial Methodology for the criteria and data sources behind every rating on this site.
The Price Question — Why Studies Disagree
This is worth being upfront about: rate studies genuinely disagree on which insurer is cheaper. U.S. News found State Farm averaging $151/month versus Allstate's $163/month. MoneyGeek found the opposite — Allstate at $2,381/year versus State Farm's $2,454/year. A third study found State Farm at roughly $1,200/year versus Allstate's $1,350/year. The differences come down to each study's sample home profile, location weighting, and coverage assumptions — none of them is "wrong," they're just measuring somewhat different things. The practical takeaway: get quotes from both insurers for your specific home rather than trusting any single published average.
Where State Farm Wins
- Coverage quality: State Farm scores meaningfully higher on coverage strength (4.03/5 vs. 3.69/5 in MoneyGeek's analysis), and includes an extra 20% dwelling coverage cushion by default — Allstate offers similar extended coverage but charges extra for it
- Flood insurance: State Farm offers flood insurance as an add-on in most states — Allstate doesn't offer flood coverage at all, requiring a completely separate NFIP or private flood policy
- Claims satisfaction: State Farm consistently scores well in claims satisfaction studies and offers Claim RateGuard, which protects your rate from increasing after your first claim in many states
- Financial strength: Higher AM Best rating (A++ vs A+), though both are considered strong
- Agent network: The largest local-agent network of any national home insurer, useful if you want in-person guidance
Where Allstate Wins
- Bundling discount: Up to 25% for bundling home and auto, versus State Farm's roughly 20% — worth checking directly since actual bundled pricing depends on your specific policies
- Broader discount menu: Allstate advertises more discount categories overall, including green home upgrade reimbursement, automatic payment discounts, and responsible payment history credits
- More optional coverages: Allstate offers a wider range of specialty add-ons, including coverage for musical instruments, landscaping, and sports equipment
- Potentially lower base premium: Some rate studies (though not all) show Allstate with a modestly lower average annual premium
The Flood Insurance Difference — Why It Matters
This is one of the most consequential differences between the two, easy to overlook until you actually need it. Standard homeowners policies from both insurers exclude flood damage — that's true industry-wide, not specific to either company. But State Farm offers flood coverage as an add-on in most states, letting you get both your standard homeowners policy and flood protection through one carrier. Allstate doesn't offer this at all — Allstate customers who want flood coverage need a completely separate policy through the National Flood Insurance Program or a private flood insurer, adding complexity (and a second bill) to your coverage.
How to Decide
Choose State Farm if: You want the strongest overall coverage, need flood insurance and want it bundled with your homeowners policy, value claims satisfaction and a large local agent network, or want the built-in dwelling coverage cushion.
Choose Allstate if: You're bundling home and auto and want to maximize the discount, want access to more specialty coverage add-ons, or your specific quote comparison shows Allstate genuinely cheaper for your home.
Given how much the published rate studies disagree with each other, this is one comparison where getting an actual quote from both matters more than usual — the "average" winner may not be the winner for your specific home.
Want a broader look at the full field before narrowing it down to these two? MoneyVerge's best home insurance companies guide covers Amica, State Farm, Erie, USAA, and Allstate side by side.
Frequently Asked Questions
Independent rate studies genuinely disagree — some show Allstate slightly cheaper, others show State Farm meaningfully cheaper. The differences come down to each study's methodology, so get quotes from both for your specific home rather than relying on a single published average.
No — Allstate doesn't offer flood coverage as an add-on. You'd need a separate policy through the National Flood Insurance Program or a private flood insurer. State Farm offers flood add-ons in most states.
Allstate advertises a higher maximum bundling discount (up to 25%) compared to State Farm (around 20%), though actual bundled pricing depends on your specific home and auto policies — compare the total bundled quote from each, not just the advertised discount percentage.
Neither is currently accepting new homeowners business in California as of 2026. State Farm also isn't writing new policies in Rhode Island or Massachusetts. Check current availability directly, since this can change.
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Home Insurance by State
Rates and risk factors vary dramatically by state — find your state's guide: