Allstate Homeowners Insurance Rate Increases in 2026

October 30, 2026 | Encompass Agency, Inc. | Buffalo, NY

If you've recently received your Allstate homeowner's insurance renewal and noticed that your premium is higher than it used to be, you might be wondering whether it's time to start shopping around.

You're certainly not alone in asking that question.

Homeowners insurance premiums have changed considerably over the past several years, and even some of the largest insurance companies in the country have continued adjusting their rates, and one of those companies is Allstate.

Here at Encompass Agency, we believe homeowners should understand what's happening in the insurance marketplace and, perhaps more importantly, know what options may be available to them.

Why Are Allstate Homeowners Insurance Rate Increases in 2026 Happening?

According to Allstate's second-quarter 2026 financial results, released on August 5, 2026, the company's Allstate-branded average homeowners insurance gross written premium increased approximately 5.8% compared to the same quarter in 2025.

Allstate attributed the increase to factors including insurance rate adjustments and higher home replacement costs. The company also reported an 8.1% increase in total homeowners insurance premiums written during the quarter, reflecting both higher average premiums and growth in the number of policies.

It's important to understand that these are company-wide financial figures. They don't represent a uniform rate increase for every Allstate customer, nor do they necessarily reflect the premium changes being experienced by homeowners here in New York.

However, they do illustrate an ongoing trend in the homeowners insurance marketplace: even as certain insurance costs begin to stabilize, homeowners may continue to experience changes in their renewal premiums.

Why Are Homeowners Insurance Premiums Still Increasing?

We've discussed rising insurance costs in previous articles, and many of the same factors continue to affect homeowners insurance today. Some of the more significant factors include:

• Higher home reconstruction costs: The cost of rebuilding a home after a covered loss can be significantly different from what it was several years ago. Materials, labor, and contractor expenses all play a role.

• Severe weather losses: Windstorms, hail, and other catastrophic weather events can affect insurance company claims expenses and future pricing decisions.

• Increased replacement cost estimates: Even if you haven't made improvements to your home, your insurance company's estimated cost to rebuild it may change over time.

• Individual insurance company pricing: Every insurance carrier has its own underwriting guidelines, loss experience, and pricing structure, subject to applicable insurance regulations.

And that's an important point - just because one insurance company has adjusted its rates doesn't necessarily mean every other company has made the same changes, or that they'll evaluate your home in exactly the same way.

Your Allstate Renewal Went Up. Should You Switch?

Not necessarily.

We certainly wouldn't recommend changing insurance companies simply because your premium increased. In fact, there are situations where remaining with your current insurance company may still be the most appropriate decision.

However, a significant renewal increase is a reasonable time to review your coverage and compare available options.

For example, you might discover that another insurance carrier offers a different combination of deductibles, optional coverages, and pricing.

On the other hand, you might find that your current policy remains competitive when compared with other available options.

Either way, you'll have a better understanding of what you're paying for.

And that's really what shopping your insurance should be about.

Don't Compare Homeowners Insurance on Price Alone

This is something we emphasize frequently at Encompass Agency.

Two homeowners insurance policies can have similar premiums but provide substantially different coverage. When comparing homeowners insurance quotes, we recommend paying particular attention to:

• Dwelling coverage: Is the insured value appropriate for the estimated cost to rebuild your home?

• Roof coverage: Does the policy provide replacement cost coverage or actual cash value settlement for certain roof losses?

• Deductibles: Are there separate deductibles for wind, hail, or other covered losses?

• Water backup coverage: Is coverage for qualifying sewer or drain backup losses included or available by endorsement?

• Personal liability: Are your liability limits appropriate for your circumstances?

• Additional endorsements and exclusions: Are there important coverage differences that might affect you in the event of a claim?

A less expensive policy isn't necessarily a better policy, particularly if the savings come at the expense of coverage you need. That's why we believe an insurance review should involve more than simply comparing two premium amounts.

Why Work With an Independent Insurance Agency?

If you currently have your homeowners insurance through an agent who primarily represents one insurance company, you may be accustomed to reviewing coverage options within that company's available products. An independent insurance agency offers another approach.

At Encompass Agency, we work with multiple insurance companies, allowing us to explore different coverage and pricing options for eligible customers. That doesn't mean we can always find a lower premium. It also doesn't mean that another insurance company will necessarily offer identical coverage.

What it does mean is that we can help you compare available alternatives and better understand the differences between them, and in a changing insurance marketplace, having additional options can be valuable.

When Was the Last Time You Shopped Your Homeowners Insurance?

If it's been several years since you last compared homeowners insurance quotes, it may be worthwhile to revisit your options. Your home may have changed. Your coverage needs may have changed. And the insurance marketplace has certainly changed.

Whether you're currently insured with Allstate, State Farm, Farmers, or another insurance company, there's nothing wrong with requesting a second opinion.

In fact, periodically reviewing your insurance coverage is simply a good financial habit.

Have an Allstate Renewal Coming Up? Let Us Take a Look.

If your Allstate homeowners insurance premium has increased, or you simply haven't reviewed your coverage in a while, Encompass Agency would be happy to help.

We can review your existing policy, discuss your coverage needs, and explore alternative quotes when available through the insurance companies we represent.

You don't need to wait for a substantial rate increase to ask questions about your insurance.

Before you renew, consider getting a second opinion.

Or call our office at 716-835-6790 (New York) 1-800-484-9712 (All Others) to speak with an agent Monday - Friday 9AM to 4PM EST.

Encompass Agency, Inc. is an independent insurance agency and is not affiliated with Allstate Insurance Company, State Farm, or Farmers Insurance. References to these companies are for informational and comparative purposes only. Insurance rates, coverage, eligibility, and discounts vary by carrier, applicant, property, and state. All quotes are subject to underwriting approval, policy terms, conditions, and exclusions. No premium savings, coverage equivalency, or acceptance is guaranteed.

Sources:

• The Allstate Corporation, Second Quarter 2026 Financial Results, August 5, 2026.

• The Allstate Corporation, 2025 Annual Report, published in 2026.

• AM Best, Personal Auto and Homeowners Markets' Stabilization Evident Despite a Decline in Approved Rate Changes, May 18, 2026.