Jane Dotson
Louisiana has been facing a homeowners insurance crisis since 2022, with many insurance companies going out of business or leaving the state. This has left thousands of homeowners looking for new insurance providers. However, Allstate is one of the top home insurance companies in Louisiana, and it continues to write homeowners insurance in the state.
| Characteristics | Values |
|---|---|
| Allstate's position in Louisiana's homeowners insurance market | One of the top home insurance companies in Louisiana |
| Allstate's premium in Louisiana | Higher than the state's average |
| Allstate's financial strength | A+ (Superior) rating from AM Best |
| JD Power customer satisfaction score | Lower-than-average |
| Allstate's rates in Louisiana | Lower than the statewide average |
| Allstate's deductible perks | Available |
| Allstate's optional coverage types | Electronic data recovery, yard and garden coverage, water backup, musical instrument coverage, identity theft coverage, scheduled personal property coverage, HostAdvantage |
| Allstate's Claim Rateguard feature | Available |
| Allstate's inspection process | Includes an exterior inspection of the house after the application is signed |
| Allstate's subsidiary | Encompass |
| Allstate's partnership with NFIP | Does not partner with NFIP |
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What You'll Learn
Allstate's high customer satisfaction score
Allstate is one of the biggest home insurance companies in the US, with an A+ rating from AM Best for its financial strength and ability to meet its ongoing insurance policy and contract obligations. It offers a broad range of policy offerings and solid customer service, with 84.3% of its customers rating it highly for customer satisfaction. Allstate's customers have also reported high satisfaction with its ease of use, policy offerings, and digital web and app experience.
In an Insure.com survey, Allstate was ranked No. 3 overall for the best home insurance companies, receiving 4.4 stars. While Allstate's premium is higher than Louisiana's average, it offers optional coverage types that allow customers to personalize their policies. These include electronic data recovery, yard and garden coverage, water backup, and musical instrument coverage. Allstate also offers a Claim Rateguard feature, which may prevent insurance costs from increasing after a claim.
Allstate's customers have reported high satisfaction with its customer service, with 85% of customers in one survey saying they were satisfied. Additionally, 91% reported a positive experience accessing policy documents and services, and 84% said they were satisfied with the company's policy offerings. In the same survey, 88% of Allstate customers said they would recommend the company to others.
Allstate's bundling option for auto and home policies has also been well-received, with 74.1% of customers expressing satisfaction. The company's average bundling discount is 16%, which is larger than that of many competitors. Furthermore, Allstate's digital experience has been positively rated by its customers, with 83.1% saying they were satisfied with the company's website.
While Allstate has received positive feedback in many areas, there are also aspects where its performance could be improved. For instance, its claims handling received a score of 75%, which is lower than that of some competitors. Additionally, its discount offerings received a satisfaction rating of 67.2%, which is similar to that of its competitors.
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Allstate's optional coverage types
Allstate offers a range of optional coverage types that provide additional protection for policyholders. One such option is increased uninsured or underinsured motorist (UM) coverage. This type of coverage is designed to protect you in the event that you are in an accident with a driver who does not have sufficient insurance. While Allstate offers UM coverage, it is important to note that there have been observations of cases where the UM coverages are less than the Bodily Injury (BI) coverages. Matching your UM coverage to your BI coverage is recommended to ensure adequate protection.
Another optional coverage type offered by Allstate is comprehensive deductible coverage. This type of coverage can help offset the cost of repairs or replacements for damages to your vehicle, such as a broken windshield. However, it is worth noting that Allstate often offers comprehensive deductibles of $500, which may not cover the full cost of certain repairs. For example, a windshield replacement typically costs around $500, so selecting a higher comprehensive deductible or pushing it to zero can help ensure you receive a free glass replacement with a small increase in your premium.
Additionally, Allstate provides the option of customizing your coverage to balance protection and cost. You can choose to have more coverage at a higher premium or opt for less coverage in exchange for a discount. This flexibility allows you to decide on your risk tolerance and prioritize your needs and budget.
While Allstate offers these optional coverage types, it is always important to carefully review the policies and understand the specifics of your chosen plan. Educating yourself about the coverage, price, and claims practices will help you make informed decisions and ensure you have the protection you need.
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Allstate's subsidiary, Encompass
Allstate is writing homeowners insurance in Louisiana, although its premium is higher than the state average. Allstate offers a lengthy list of policy endorsements, including identity theft coverage, water backup, and scheduled personal property coverage.
Encompass was established in 1897 and initially sold personal insurance with the promise of "protection and security." The name Encompass was adopted in the 1990s, and in 2000, Allstate purchased the company from CNA, introducing the Encompass brand to the market. Today, Encompass has over 2,400 independent agents in 39 states, offering a range of insurance products, including home and auto coverage.
Encompass provides a Roadside Assistance app for iOS and Android users, although it has not been rated by customers. In terms of ratings, Encompass has received an A+ rating from the Better Business Bureau and has a lower complaint ratio compared to Allstate, according to the NAIC Complaint Index.
While Encompass is a subsidiary of Allstate, it is important to note that Allstate uses subsidiary companies to write policies in Louisiana without exposing itself to wind/hail losses. This means that while Encompass is a viable option for homeowners insurance in Louisiana, the specific details of the policy, such as coverage and pricing, may differ from standard Allstate policies.
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Allstate's premium and deductible perks
Allstate offers a range of perks and discounts to help lower premium rates for its customers. Firstly, Allstate's extended vehicle care coverage provides protection beyond the typical manufacturer's warranty. This coverage includes towing costs, repair costs, and mechanic reimbursement. Additionally, Allstate offers a Safe Driving Bonus program that rewards drivers for safe practices such as slowing down at crosswalks and sharing the road with bikes and scooters. Enrolled drivers earn a bonus every six months without an accident, which is credited towards their policy premium.
For low-mileage drivers, Allstate's pay-per-mile insurance program, Milewise, can result in significant savings. This program charges a daily rate plus a per-mile rate, and while it was previously only available in a few states, its availability has since expanded. Allstate also offers discounts tailored to individual driving habits and policy management preferences, including safety features and payment options. These discounts can help lower premium rates, making Allstate's insurance more affordable for customers.
In terms of deductible perks, Allstate provides coverage for repair costs after a mechanical breakdown. With a $50 deductible, Allstate will cover 100% of parts and labor costs for engine or electrical repairs. This can provide peace of mind for customers who may be concerned about unexpected repair expenses. Additionally, Allstate offers reimbursement for rental car costs, ensuring that customers have transportation while their vehicle is being repaired.
It's important to note that Allstate's premium rates can increase after a claim, and prior claims can impact future rates. However, Allstate offers flexibility in policy management. Customers can cancel their coverage at any time without penalty and receive a refund for the unused portion of their premium. This flexibility allows customers to adjust their coverage as needed without incurring additional fees. Overall, Allstate provides a range of perks and discounts that can help make their insurance policies more accessible and affordable for customers.
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Louisiana's insurance crisis
Louisiana has been facing an insurance crisis, with insurance commissioner Tim Temple calling it the "biggest crisis our state faces". The crisis has been characterised by skyrocketing insurance rates, with homeowners insurance rates rising by 16% in 2022, 14% in 2023, and 6.6% in 2024, forcing some residents out of their homes. Louisiana's auto insurance rates have also been described as the least affordable in the country, with the average annual expenditure for personal auto insurance in the state nearly 40% above the national average in 2022.
The insurance crisis in Louisiana has been attributed to several factors. One significant contributor is the increase in reinsurance costs, which soared after the 2017 wildfires in California. These higher costs have been passed on to homeowners in the form of higher premiums. Additionally, the state's frequent hurricanes and natural disasters have likely influenced rates. In response to the crisis, the Louisiana legislature enacted reforms in 2024 to stabilise the market and reduce rates. These reforms included extending the period for filing lawsuits and settling claims, granting greater flexibility around cancellations, and improving the business climate for insurance carriers. As a result, the rate of increases has slowed, and the insurance commissioner has stated that the crisis is easing.
In the homeowners insurance market, companies like Allstate, State Farm, and USAA are among the top providers in Louisiana. However, Allstate has faced some criticism for its practices in the state. In some parts of Louisiana, Allstate has been known to insure fire coverage but write the wind/hail portion of the policy through Louisiana Citizens, which is more expensive and provides less coverage. Alternatively, they may write the entire policy through a subsidiary company that isn't approved by the Louisiana Department of Insurance, allowing for non-standard coverages. This has led to confusion among customers who believe they are solely insured by Allstate.
Despite the crisis, there are signs of improvement in Louisiana's insurance market. In 2025, the Louisiana Department of Insurance approved seven rate decreases for residential insurers, ranging from 4% to 11%. Additionally, ten new homeowners insurance carriers entered the state, contributing to a decline in costs and the frequency of rate filings. These developments suggest that the insurance crisis in Louisiana may be showing signs of improvement, providing much-needed relief to the state's residents.
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Frequently asked questions
Yes, Allstate is writing homeowners insurance in Louisiana. However, in many parts of the state, especially the Gulf Coast and New Orleans, Allstate is no longer writing on its own paper. They will write fire coverage and put wind/hail coverage on Louisiana Citizens, or write the entire policy through them.
Allstate offers rates that are lower than the statewide average. They also offer deductible perks and lower rates each year that you don't file a claim. You can also save money on your premiums with their Claim Rateguard feature, which prevents your cost of homeowners insurance from increasing after a claim.
Allstate is rated as one of the best homeowners insurance providers in Louisiana, along with State Farm, USAA, and The Hanover. Allstate offers optional coverage types, such as electronic data recovery, yard and garden coverage, and water backup. They also offer identity theft coverage, which is not offered by State Farm. However, State Farm offers flood insurance, which Allstate does not.
