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Allstate Homeowners Insurance Coverages: Here’s What You Should Know

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Allstate Insurance Company is one of the largest insurers in the United States.

The company offers homeowners insurance through the Allstate, Esurance, Encompass, and Answer Financial brands. According to the company’s last Annual Report, it is the second-largest home insurance provider with 8.1% of the market as measured by direct written premium.

Progressive Home Insurance Market Share

Allstate has a range of home insurance policies. You can insure your house, condo, apartment, or manufactured home. It doesn’t matter if you own or rent.  If you’re a landlord, there’s also a policy to meet your insurance needs.

More on all of these coverage options below.

The Standard Home Insurance Coverages

As you’d expect, the full menu of standard coverages is available at Allstate. Here is a breakdown of the four main coverage types.

Dwelling Coverage

Dwelling coverage protects your home’s physical structure and any attached structures.

A garage or deck is considered an attached structure. Things like a fence or utility line aren’t considered an attached structure.

When it comes to coverage, the most important factor is not the damage itself. It’s the event that caused the damage.

Examples of covered events:

  • Falling objects
  • Freezing of plumbing
  • Theft
  • Vandalism
  • Windstorms or hail

Examples of events not covered.

  • Flooding of any kind
  • Sewer or drain back up
  • Sump pump or sump pump well overflow
  • Earth movement of any type (e.g., earthquake or landslide)

Personal Property Coverage

Personal Property Coverage insures your belongings (e.g., TV or bike) if they’re damaged or stolen.

If someone steals your TV. You’re covered.

If someone steals your bike. You’re covered.

If there’s a fire that destroys your furniture. You’re Covered.

Two terms you need to know when it comes to personal property coverage, actual cash value, and replacement cost coverage.

Actual cash value covers the cost to replace your items, taking into account how much they’ve decreased in value.

Replacement cost coverage picks up the bill for replacing your items with new ones of the same kind and quality at the time of the claim.

One of the best things about Allstate’s Personal Property coverage is that your stuff is covered no matter where you are. For example, one day you bike to town to go to your favorite store. You leave your bike chained up outside. When you come out of the store, you’re bike’s gone. Don’t worry. With Allstate, you’re covered.

There are some things to be aware of. For one, there are coverage limits. Take jewelry for example. Every homeowner with Allstate has a $2,5000 limit for all the jewelry they on with a $1,000 limit per individual item. You can increase your limit, but that comes with an added cost.

Liability Protection

This comes in handy if you or a member of your family is sued for accidentally injury or property damage.  Liability protection will pick up some of the costs related to your legal fees. Without liability protection, your personal assets would be at risk.

But, Allstate’s liability insurance won’t cover everything. Take a look below to learn more:

Liability protection doesn’t cover injury or property damage resulting from:

  • Intentional or criminal acts
  • Negligent supervision by an insured person
  • Discharge, release or escape of vapors, fumes, acids, toxic chemicals, toxic gasses, toxic liquids, toxic solids, waste materials or other irritants, contaminants or pollutants
  • Past or present business activities

Liability protection also doesn’t cover injury or property damage if:

  • The monetary settlement would benefit the insured.
  • The injured person is eligible for workers’ comp, nonoccupational disability, or occupational disease benefits.

Guest Medical Protection

OK, so we’ve discussed coverage for your injuries and legal fees if you get sued.

Now let’s talk about if someone that’s not a family member is injured on your property. If that happens, Guest medical protection will help pay for their medical expenses like x-rays, ambulance rides, and hospital stays. Here’s a little more detail on what’s covered and what’s not.

Allstate will help cover the cost of these services if they are deemed “reasonable and necessary” and are performed within three years from the injury-causing event:

  • Medical, surgical, x-ray and dental services
  • Ambulance, hospital, licensed nursing, and funeral services
  • Prosthetic devices, eyeglasses and hearing aids
  • Pharmaceuticals

Allstate will not cover medical expenses resulting from:

  • Intentional or criminal acts
  • Negligent supervision by an insured person
  • Ownership, use or renting of an aircraft, watercraft or motor vehicle
  • Rendering of, or failure to render professional services

Allstate Offers Optional Coverages that Enhances its Standard Policy

Every homeowner and renter has different needs. And, while the standard coverages do a great job of protecting you, there still could be gaps in your coverage. That’s why Allstate offers a bunch of optional coverages you can add on to your homeowners insurance policy.

Here are some of the optional coverages that you can add to your policy:

  1. Identity Theft Restoration: the name says it all. If your identity is stolen, this covers some of your legal fees, lost wages, and other related costs.
  2. Water Backup: they do a good job of naming these coverages. This covers you in the event of a backed-up drain, a broken sump pump, or water damage.
  3. Scheduled personal property: increase your coverage limits for your personal property.
  4. Business property: increases coverage of business items stored in your home.
  5. Sports equipment: increases coverage of expensive sports equipment.
  6. Yard and Garden: increases coverage for items like trees, landscaping, and riding lawnmowers.
  7. Electronic data recovery: comes in handy when you lose personal computer data like photos or videos.
  8. Musical instruments: increases coverage for musical instruments

You can also bundle these separate policies to enhance your coverage. You can add a flood insurance policy, which will help you out financially if there’s physical damage to your home and belongings from rising water. A personal umbrella policy is another example. It will help with any large claims that run over your property policy’s liability limit.

It’s easy to keep track of any optional coverages or additional policies you add. They will all show up on your updated Policy Declaration.

How You Can Save Money with Allstate

Allstate offers policyholders plenty of discounts to help you lower the cost of your insurance. Most of the discounts are easy to earn.

  • Protective device discount: save when your home has theft or fire protection devices.
  • Multi-policy discount: save up to 25% for bundling home and auto insurance policies.
  • Easy Pay Plan: save up to 5% when you set up automatic payments.
  • Claim-free discount: save up to 20% when you switch to Allstate without a recent home insurance claim.
  • Early signing discount: save up to 10% on your home insurance premium when you sign up for a new policy at least 7 days before your current one expires.
  • Welcome & loyalty discount: switch to Allstate and save up to 10%.  You can also save 10% every year after that as long as you’re a customer.
  • Homebuyer discount: save some money if you buy a home that was just built, or if you’re a recent homebuyer.
  • 55 and retired discount: save just for getting old and retiring. if you’re over the age of 55 and retired, you qualify.

There are more discounts If you decide on an Allstate policy, a local agent can make sure you’re using all the available discounts.