American Family offers a wide range of insurance options, including renters insurance. Though the company only operates in 19 states, it has an excellent reputation. American Family has a strong financial record and rates well in customer satisfaction surveys. The company offers a variety of renters insurance options that can be customized. With their below-average premium prices, American Family is an excellent option for those within its service area.
American Family Renters Insurance Overview
The American Family Insurance company started out as an auto insurance company in Wisconsin in 1927. Over the years, it has expanded service in 18 other states. The company still hasn’t reached a nationally-renowned status, as only 57% of people have heard of it.
22% of people have a positive opinion of American Family Insurance, while just 6% have a negative opinion. The company has an A rating with the Better Business Bureau and strong financial standing. American Family offers a wide range of insurance policies, including auto, property, business, life, and more.
- Multiple coverage options American Family offers three tiers of coverage to best meet your needs.
- Low price American Family has lower-than-average annual premiums.
- Customer service American Family has average ratings in customer service and below-average complaints.
- Small coverage area American Family is available in just 19 states, meaning their services are unavailable to most of the country.
- Not the most competitive price While American Family’s pricing is lower than average, it is not the most competitive.
American Family Highlights
Renters insurance through American Family costs an average of just $15 per month or, according to the company’s website, the cost of three fancy coffees or one large pizza. The cost of renters insurance varies depending on several factors, including coverage limit, location, property type, and deductible amount. In general, the more property you want to insure, the more you’ll pay for your premiums. Being in an area with a high crime rate or that is prone to natural disasters will also likely increase your rates.
American Family offers its renters insurance in three different tiers (good, better, and best), with various options for customization. All three tiers offer personal property coverage at various levels, as well as coverage for living expenses in case of damage to your home. All of American Family’s coverage options include personal liability coverage and coverage for medical expenses, in case a guest is injured in your home. Finally, all tiers include identity fraud expense coverage, meaning the company will help you recover from identity theft.
Other coverage options are available for only certain insurance tiers. Personal injury and equipment breakdown coverage are available under some policies. The better and best tiers provide coverage for valuable items such as jewelry, gemstones, watches, and furs.
American Family was ranked fourth out of 13 companies on the 2020 J.D. Power Home Insurance Study for customer satisfaction in renters insurance. Furthermore, the company came in above industry average for customer satisfaction on the 2020 J.D Power U.S. Property Claims Satisfaction Survey.
Although the company is hit and miss when it comes to customer complaints. The company as a whole has above-average complaints. However, when it comes to specifically property insurance, the company’s complaint index is below-average.
The company offers a variety of discount options including discounts for having multiple policies with American Family. Other discounts exist for customers who have qualified smart devices or those who have a claims-free record. Loyalty discounts are also available for those who have a long-standing relationship with American Family Insurance.
For American Family renters insurance review we evaluated the company based on its customer rating and experience, financial stability, and coverage. To compare renters insurance companies across the board, we calculated a 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 available 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.
- 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 2020 Score||NAIC Customer Complaints|
|American Family||3.75||A||840||Fewer complaints than average|
|State Farm||3.25||A++||836||More complaints than average|
|Allstate||3.5||A+||841||Fewer complaints than average|
|USAA||3.75||A++||888||Fewer complaints than average|
|Nationwide||3.75||A+||831||Fewer complaints than average|
|Farmers||3.5||A||839||Fewer complaints than average|
*All information accurate as of September 26, 2020.
American Family vs. State Farm
American Family and State Farm are two of the largest providers of renters insurance coverage. Though both companies have solid reputations, State Farm offers coverage nationwide, while American Family is only available in 19 states. American Family and State Farm have good financial strength ratings from AM Best, with State Farm taking the lead with an A++. When it comes to customer service, American Family seems to be the winner. State Farm has more than average complaints, while American Family’s property insurance has lower than average. State Farm wins when it comes to price, with the lower average annual premiums.
American Family vs. Allstate
Allstate offers renters insurance coverage in all 50 states, compared to the just 19 states where you can purchase American Family renters insurance. Allstate has a slightly higher financial strength rating and customer satisfaction. American Family beats Allstate when it comes to price, with a lower annual average premium.
The Bottom Line
American Family renters insurance is worth considering if you live within the company’s service area. It offers great customization options and various tiers of service so you can get the exact renters coverage you need.
The company’s strong customer service record and financial strength gives customers the ability to obtain a policy with confidence.
American Family Renters Insurance FAQ
American Family offers a variety of other property insurance policies including home, condo, manufactured home, farm & ranch, business, and landlord insurance. You may be eligible for a discount for bundling multiple insurance policies under the same company.
American Family recommends purchasing enough renters insurance to replace all of the belongings in your home or apartment. You should purchase additional coverage for items of great financial value such as jewelry.
American Family offers rental insurance coverage in 19 states:
- North Dakota
- South Dakota
American Family Insurance Group is composed of 14 individual companies. Your location and the type of insurance you purchase will determine which company underwrites your policy. American Family’s companies include:
- American Family Mutual Insurance Company, S.I
- American Standard Insurance Company of Wisconsin
- American Family Life Insurance Company
- American Family Brokerage, Inc
- American Family Financial Services, Inc.
- American Family Insurance Company
- American Family Standard Insurance Company of Ohio
- AmFam, Inc.
- The AssureStart Insurance Agency, LLC
- Homesite Group Incorporated and its subsidiaries
- The Main Street America Group
- Midvale Indemnity Company
- Midvale Life Insurance Company of New York
- New Ventures, LLC
- PGC Holdings Corp. and its subsidiaries.
American Family offers various tiers of renters insurance coverage depending on your specific needs. All renters insurance policies include coverage for personal property, loss-of-use, personal liability, medical expenses, and identity fraud. The higher tiers also include coverage for valuable items like jewelry, personal injury coverage, and equipment breakdown coverage.