Esurance, a subsidiary of Allstate, has been providing homeowners coverage and other insurance products since 1999 but will disappear as a brand in 2020. The company is online-focused, offering robust online quotes and digital tools. Esurance excels in areas such as its online resources and simple quote process, but falls behind its competitors when it comes to customer satisfaction. Although Esurance didn’t make the cut for our list of best homeowners insurance, its parent company Allstate did.
Esurance Home Insurance Overview
Esurance, an Allstate company, offers online-focused homeowners insurance for customers who prefer a quick and straightforward process. Esurance is a subsidiary of Allstate and holds an A- rating with the Better Business Bureau. According to YouGov, 28% of survey respondents have a good opinion of Esurance. However, the company also holds a high amount of complaints with the National Association of Insurance Commissioners (NAIC).
Esurance offers all the coverage you need, plus some extra helpful features. This makes the company appealing to a broad segment of customers.
It is worth noting that Allstate has announced it will be retiring the Esurance brand in 2020 and continuing to sell its products under the Allstate name.
- Sample DIY quotes Input your zip code on the website or call the toll-free number to start the quotes process. Then provide some standard information, such as home address and purchase date, to have a quote within minutes.
- Useful online tools The DIY home inspection app walks you through submitting videos for a home inspection. Esurance also offers a home insurance calculator to help you better understand your needs.
- Financial strength Esurance has an A+ financial strength rating from AM Best.
- Customer complaints The company has more than average customer complaints for its homeowners insurance.
- Underwritten by other companies In some states, other companies underwrite policies for Esurance companies. Esurance doesn’t provide customer service or claims to these customers.
- Retiring brand Allstate is retiring the Esurance brand in 2020, so customers may prefer not to open a new policy with the company.
The price of homeowners insurance varies widely depending on several factors including:
- Location: You may pay more for insurance in a region that is prone to natural disasters or extreme weather.
- Home value: The more valuable your home, the more you’re likely to pay for insurance.
- Home features: Your insurance price could be impacted by additional features such as a swimming pool or fence around your yard.
Deductible: There’s generally an inverse correlation between your deductible and your premium. The higher your deductible, the lower your premium, and vice versa.
Esurance covers damages caused by many common situations of things that might go wrong with your home, including fires, lightning, wind, explosions, vehicles crashing into your home, theft, vandalism, falling objects, and effects of ice, snow, and sleet.
In addition to the structure of your home and any additional buildings on the property, Esurance home insurance also covers your standard belongings, and you can purchase additional coverage for expensive items like jewelry and artwork. Additionally, Esurance home insurance covers medical bills for any guests injured at your house.
Unfortunately, Esurance was not rated in the J.D. Power Home Insurance Study, which we like to use as a gauge of customer satisfaction. Though the company has a decent rating from the Better Business Bureau (A-), it has a higher than average number of complaints with the National Association of Insurance Commissioners (NAIC). This suggests that there’s some room for improvement when it comes to customer experience.
Like many of its competitors, Esurance offers discounts to customers who bundle two or more insurance policies. While Esurance only has a couple of types of insurance available, you can bundle your homeowners insurance with auto or motorcycle insurance to get a discount.
We evaluated the company based on its customer rating and experience, financial stability, and coverage. To compare Esurance with home insurance companies across the board, we calculate each Reviews.com score based on the following:
- Customer Ratings — Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage — As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence — It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
- Customer Experience — The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
|Company||Reviews.com Score||AM Best Financial Strength Rating||J.D. Power 2019 Score||NAIC Customer Complaints|
|Esurance||N/A**||A+||N/A||More complaints than average|
|Geico||2.75||A++||N/A||Fewer complaints than average|
|Allstate||4||A+||814||Fewer complaints than average|
|Lemonade||N/A**||N/A||N/A||More complaints than average|
|Amica||4.25||A+||845||Fewer complaints than average|
All information accurate as of October 7, 2020.
*J.D. Power 2020 Home Insurance Study, based on a 1,000-point scale.
**Some providers don’t have enough third-party ratings to calculate a score.
Esurance vs. Geico
Esurance and Geico both have a reputation for their online offerings. With easy-to-use websites, online educational resources, and intuitive mobile apps, the two companies make online insurance simple for customers.
Both companies also have their policies underwritten by other companies (Esurance does write some of its own), though Geico is more widely available. Geico, as a company, also boasts nearly half as many complaints as Esurance. In addition, it holds a slightly higher financial strength rating, with an A++ from AM Best.
Esurance vs. Allstate
Though Esurance and Allstate operate under two different brands and offer separate insurance policies, Allstate owns the Esurance brand. In many states, when you try to get a quote for home insurance from Esurance, you’ll be rerouted to the Allstate website. And by the end of 2020, Allstate is planning to retire the Esurance brand altogether. Allstate has more name recognition than Esurance, and the company boasts fewer complaints than its subsidiary.
The Bottom Line
Esurance offers a straightforward, online-focused service for customers who prefer to handle their insurance digitally. It provides convenience, but with a sacrifice in customer service. While it does have agents available by phone, there are no local agents for customers to receive face-to-face help.
As a subsidiary of Allstate, Esurance is backed by a reputable company. That being said, given that Allstate is planning to retire the Esurance brand in 2020, it may not be worth signing up for a new policy. Given that policies underwritten by Esurance will become Allstate policies eventually, you might be better served going directly to the parent company for your home insurance policy.
Esurance Home Insurance FAQ
In addition to homeowners insurance, Esurance also offers renters, car, and motorcycle insurance. Customers are eligible for a discount when they bundle multiple policies.
You should generally purchase enough homeowners insurance to replace the full value of your home and all of your belongings. It’s best to plan for the worst-case scenario, where a fire or natural disaster results in a total loss.
To learn more about buying the right homeowners insurance coverage, visit our full homeowners insurance FAQ page.
Esurance is currently licensed to provide insurance in the 43 following states:
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
Home insurance policies underwritten by Esurance are available in certain states. In other states, home insurance quotes received by Esurance are underwritten by Answer Financial, Inc, or Security First Insurance Company. Esurance does not provide customer service or pay claims for policies not underwritten by Esurance.
Home insurance from Esurance covers the structure of your home and other buildings on your property and your belongings within the home. It also covers medical bills for guests hurt on your property. Esurance home insurance protects you in situations such as fires, lightning, wind, explosions, vehicles crashing into your home, theft, vandalism, falling objects, and damage from ice, snow, or sleet.