In business since the 1920s, American Family is a long-standing, trusted name in insurance. American Family offers a range of different insurance products, with its homeowners insurance being a popular choice.
American Family’s home insurance products start with a base policy but you can add on additional coverage for further protection. Add-ons include things like flood insurance, equipment breakdown, water backup coverage, and even credit theft protection.
This American Family homeowners insurance review will cover everything you need to know about American Family and its policies.
American Family Home Insurance Overview
- In business since: 1927
- JD Power Score: 821/1,000
- AM Best Financial Strength Rating: A
- States Served: 19
American Family has a long history of helping people keep their homes protected and is the 31st most popular insurance company according to YouGov. Despite its experience, American Family has some poor customer reviews according to Better Business Bureau and YouGov.
|Personalized coverage – Through a wide array of add-on coverages, you can customize your policy to fit your individual needs. |
Digital tools and resources – American Family offers digital tools such as a home insurance checklist and a home insurance calculator to help you make sense of the process.
Plenty of discounts available – The insurer offers a range of discounts to help you save on the costs of homeowners insurance.
|Underwhelming customer service – American Family is a trusted name but its customer service reviews show some dissatisfaction.|
Limited availability – Coverage is not available nationwide.
American Family Highlights
To determine your rate, American Family will look at the details of your home, including where it’s located, the size, how many people live there, its value, building materials and the condition of the property. There are also a few personal factors that will influence your rates, such as your age, marital status, income, credit score and more. Because homeowners insurance rates are highly personalized, it’s important to pull a few quotes for yourself in order to determine what it will cost you.
Like most insurance providers, American Family includes a specific list of coverages in every policy.
Those coverages include:
Customers who want even more protection can add to their policy for an additional fee:
- Equipment breakdown
- Water backup
- Identity theft
- Siding protection coverage
If you’re not sure how much insurance coverage to purchase, start by creating a home inventory. Make a list of every item in your home, from clothing to appliances, and note their original value. The total value of your items should be factored into the amount of insurance coverage you purchase. You should also keep in mind the estimated replacement cost of your home, determined by an insurance underwriter.
Overall, American Family home insurance reviews are average regarding its customer service. According to J.D. Power’s 2020 U.S. Home Insurance Study, American Family earns 821 out of 1,000 points for overall satisfaction — hovering just below the industry average.
In terms of the digital experience, American Family is an industry leader. The company offers a variety of resources and helpful tools that homeowners can use when shopping for insurance. Some of the notable digital tools include a home inventory worksheet, a policy comparison tool, an insurance calculator, a smart home technology guide, a first-time home buyers guide and a checklist with common insurance questions.
Deals, discounts and add-ons
American Family is known for advertising a long list of discounts that customers can take advantage of to save money on their premiums.
Homeowners can lower their premium by:
- Bundling policies
- Installing smart home devices
- Renovating the home
- Signing up for autopay or paperless billing
- Paying their policy in full
- Staying with the company for several years
- Having a parent who is also an American Family customer
We evaluated the company based on its customer rating and experience, financial stability, and coverage. To compare American Family 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 (Editor will add this information)||AM Best Financial Strength Rating||J.D. Power 2020 Score(On a 1,000-point scale)||NAIC Customer Complaints|
|American Family Home Insurance||3.75||A||821||More complaints than average|
|State Farm||3.75||A++||829||Fewer complaints than average|
|Allstate||4||A+||829||Fewer complaints than average|
|Farmers||3||A||814||More complaints than average|
|Geico||2.75||A++||N/A||More complaints than average|
American Family vs. State Farm
American Family and State Farm have similar ratings in terms of J.D. Power’s overall customer satisfaction. However, according to the NAIC Customer Complaints, State Farm is faring slightly better with fewer complaints than the current average.
In terms of policy offerings, both companies have similar offerings with optional add-ons such as flood insurance. State Farm serves 50 states in the U.S. which means it’s a lot easier to find a policy with State Farm than with American Family.
Another way the two companies differ is with the discounts available. American Family offers a wide range of discounts for different types of customers, whereas State Farm has fewer options to help you lower the cost
American Family vs. Allstate
Both American Family and Allstate offer a range of insurance policies that can be customized and managed through an app. In terms of underwriting, both companies aim to underwrite all of their own home insurance policies rather than relying on third-parties. However, American Family does rely on third-parties for its auto insurance.
Allstate scores slightly higher than American Family in terms of AM Best Financial Strength rating and J.D. Power. Allstate also has fewer complaints than the average while American Family is experiencing higher than average complaint rates. Allstate operates across 50 states, making it more widely accessible than American Family.
The Bottom Line
American Family provides reliable homeowners insurance with options to purchase extra coverage to fully customize your policy. American Family is a particularly great option for new homeowners because of its resources for first-time homeowners insurance buyers.
Is American Family home insurance good? Although American Family doesn’t have the highest ratings in terms of customer service, it’s promising that the company has very few negative reviews online. If you live in a state where American Family is available, consider including it as you begin to gather quotes.
American Family Home Insurance FAQs
What other property insurance does American Family offer?
In addition to traditional homeowners insurance, American Family can insure your farm or ranch, manufactured home, vacation home, temporary rental home, vacant home, home daycare center, or nursing home.
How much home insurance do I need?
To determine how much home insurance you need, you’ll need to figure out the estimated replacement cost of your home. To do that, you can use an online calculator or have an insurance agent visit your home to complete an assessment. You can find more information in our guide for buying home insurance.
Where is American Family home insurance coverage available?
- North Dakota
- South Dakota
How does American Family underwrite their home insurance policies?
All of American Family’s homeowners insurance policies are underwritten by the company. However, the insurer works with a partner network to underwrite its auto and life insurance policies in some states.
What does American Family home insurance typically cover?
American Family’s basic home insurance policies do not cover foundation troubles. However, customers can pay extra for equipment damage, siding protection, water backup and sump pump coverage, which pays to repair damaged or leaky pipes. The average cost of sump pump coverage is roughly $50 to $250 per year on top of your normal homeowners insurance premium.