American Family homeowners insurance is a solid choice for every type of homeowner. The company is well-known for offering a variety of basic coverage options, as well as add-on coverages for further protection.
Every American Family homeowners insurance policy includes dwelling, detached structure, personal property, temporary living expenses, and liability coverage. For even more protection, customers can add equipment breakdown, water backup, identity theft, and siding protection coverage.
The company also provides a wealth of resources for homeowners who are looking to purchase insurance, including a home inventory worksheet, insurance calculator, checklist for agent meetings, and a policy comparison chart. While the company has middling customer service scores, it’s still worth considering as you gather quotes for homeowners insurance.
| Useful digital tools|
Extensive coverage options
Plenty of advertised discounts
The Homeowners Insurance Factors We Analyzed
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, what it’s built with, and the condition of the property. There are also a few personal factors that will influence your rate, like your age, gender, 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.
Overall, American Family gets average reviews for its customer service. According to J.D. Power’s 2019 U.S. Property Claims Satisfaction Survey and its Home Insurance Study, American Family earns three out of five stars for overall satisfaction — hovering at or just below the industry average. However, the company had fewer complaints than average registered in 2018, based on data from the National Association of Insurance Commissioners.
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.
Like most insurance providers, American Family includes a specific list of coverages in every policy. Those coverages include dwelling, detached structure, personal property, temporary living expenses, and liability insurance. Customers who want even more protectioncan add equipment breakdown, water backup, identity theft, and siding protection coverage to their policy for an additional fee.
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.
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, having a newer home, renovating the home, signing up for autopay or paperless billing, paying their policy in full, staying with the company for several years, and having a parent who is also an American Family customer.
American Family Homeowners Insurance Overview: Financial Strength, Availability, and History
American Family offers great homeowners insurance, but it’s not necessarily the most well-known insurance company. According to YouGov, American Family is only the 30th most popular insurance provider in the country, and only 53% of Americans are familiar with the brand. But despite the lack of exposure, American Family manages $9 billion in customer equity and over $27.5 million in total assets.
- In business since: 1927
- S&P Global financial strength rating: N/A
- Moody’s financial strength rating: N/A
- AM Best financial strength rating: A
- States served: 25
|AM Best Financial Strength Rating||J.D. Power 2019 U.S. Home Insurance Study Score||J.D. Power 2019 U.S. Property Claims Satisfaction Study Score||NAIC Customer Complaints|
All information accurate as of January 28, 2020.
The Bottom Line
American Family provides reliable homeowners insurance with options to purchase extra coverage to fully customize their policies. American Family is a particularly great option for new homeowners because of its resources for first-time homeowners insurance buyers.
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 American Family as you begin to gather quotes.
American Family Homeowners Insurance FAQ
In addition to traditional homeowners insurance, American Family can insure your farm or ranch, manufactured home, vacation home, temporary rental home, vacant home, home day care center, or nursing home.
American Family’s homeowners insurance is only available in 25 states: Arizona, Colorado, California, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, North Carolina, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, and Wisconsin
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’s home insurance cover as it relates to foundational troubles (such as plumbing and molds)?
American Family’s basic home insurance policies do not cover foundation troubles. However, customers can pay extra for 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.