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HomepageInsuranceRentersAmerican Family Renters Insurance Review
Last updated on Jan 16, 2020

American Family Renters Insurance Review

Some of the best insurance coverage renters can buy ​
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8 companies compared

10 features evaluated

10 ratings analyzed

Joshua Cox-Steib

By Joshua Cox-Steib Author

Joshua Cox-Steib is a freelance writer. He lives in Tulsa, Oklahoma, with his wife and their three pets.

American Family Renters Insurance Review

American Family Renters Insurance is one of the most highly rated companies for renters insurance. It is known for its excellent policy options, pricing, and customer satisfaction, all of which are essential when considering renters insurance.

With American Family Renters Insurance, you can customize your policy to suit your needs, including add-on coverage options that you can choose from. If you’re looking for a renters insurance policy that is affordable, robust, and covers your possessions even while you’re on the move, then American Family might be the company for you.

Pros
Cons
Excellent customer-based ratings
Lower than average policy premiums
Robust coverage
Coverage limited to only 17 states

The Renters Insurance Factors we Analyzed

Customer Experience

American Family Insurance scores exceptionally well on the J.D. Power Property Claims ratings, with either a 5/5 or 4/5 rating in each category, and a 5/5 rating in overall customer satisfaction. As can be seen in the NAIC complaint trends report, American Family receives slightly above the average number of complaints for the company’s size.

When it comes to obtaining a policy or contacting an agent, American Family Renters Insurance makes it relatively easy. It has an online tool for getting a quick and free insurance quote. If you want to speak with an agent directly, the company has an agent locator online tool for that as well.

Moreover, American Family Insurance scored outstandingly well – the best, in fact – on the J.D. Power Renters Insurance Ratings, getting a perfect score in every category. That means American Family Insurance got a 5/5 on policy offerings, price, the billing process, and policy information, interaction, and overall satisfaction. It doesn’t get any better than that.

Coverage Information

American Family Renters Insurance offers robust coverage. Specifically, it will cover your belongings—ranging from clothing to furniture to electronics—if damaged by fire, stolen, or damaged in a covered water-related event. Your possessions are even insured when you take them with you out of the home.

In the case of a situation that makes your home temporarily unlivable, American Family Renters Insurance will cover hotel costs. It also covers medical bills and lawsuit expenses if you have a guest who is accidentally injured.

Deals, Discounts, and Add-Ons

American Family Renters Insurance offers numerous discounts. These include the multi-product discount, the smart home discount, claims-free pricing, savvy habits that save discount, loyalty discount, and their generational discount.

  • Multi-Product Discount – Get discounts on your policies when you hold more than one policy with American Family Insurance. This is great if you also need auto insurance.
  • Smart Home Discount – Qualifying smart devices installed in your home can get you a better rate on your policy through a “proactive home protection discount.”
  • Claims-Free Pricing – Not having any claims filed in the last five years can lead to a reduction in your policy premiums.
  • Savvy Habits that Save – Certain payment options are rewarded with discounts on your policy. Specifically, Autopay, Full Pay, and Paperless.
  • Loyalty Discount – Being a long-standing customer with American Family Insurance can get you a discount on your policy.
  • Generational Discount – Having a parent who is also a customer of American Family Insurance can get you a discount on your policy.

Financial Strength, Availability, and History

Overall, the public holds a high opinion of American Family Insurance. It’s not entirely free of complaints, but negative reviews are far less common than positive ones. According to YouGov, there is a 6% negative opinion of American Family Insurance, a 28% neutral opinion, and a 22% positive opinion. The company has good availability, with a presence in 17 states. Its financial strength is strong, but not the best, with an A rating from A.M. Best.

If you take a look at its information on the Better Business Bureau website, you’ll see American Family Insurance has a very poor customer review rating. This rating is in sharp contrast to what we see elsewhere. While this low rating may partially be a data fluke—the sample size is small (just 51 reviews)—it should still be considered when determining a company for your renters insurance policy.

  • In business since: 1927
  • S&P Financial Strength Rating: NA
  • Moody’s Financial Strength Rating: Aa3
  • A.M. Best Financial Strength Rating: A
  • States served (availability): Arizona, Kansas, Ohio, Colorado, Minnesota, Oregon, Idaho, Missouri, South Dakota, Illinois, Nebraska, Utah, Indiana, Nevada, Wisconsin, Iowa, and North Dakota.

The Competition

Provider
Overall Rank
Reviews.com Score
Customer Experience Score
Financial Strength Score
American Family
3
3.6/5
4/5
2.3/5
USAA
1
4.8/5
5/5
4.3/5
State Farm
2
3.8/5
4/5
3/5
Allstate
4
3.3/5
3/5
4/5
Nationwide
5
3.3/5
3/5
4/5
Farmers
6
3.1/5
3/5
3.3/5

*All information accurate as of Dec. 15, 2019.

The Bottom Line

American Family Renters Insurance is held in fairly high opinion by people. With perfect scores on the J.D. Power Home Insurance Study – Renters Insurance, it’s easy to recommend this company as a top contender to consider when looking for renters insurance. And if you like to travel and you don’t want to take out a separate insurance policy to cover your possessions while you do, then American Family renters insurance is ideal for you.

Thanks to its bundling discounts, American Family Insurance is excellent for those who are looking to obtain renters insurance as well as another type of policy, such as life or auto insurance. With a presence in 17 states and a focus on customer convenience, you can expect this company to do its best to make obtaining and using your policy as easy as possible.

FAQ

How much does renters insurance cost from American Family Renters Insurance?

The exact cost is impossible to determine without getting a personalized quote. Still, American Family Insurance does point out five key factors that play into the calculation of your policy price. These factors are coverage limits, location of residence, property type, replace cost vs. actual cash value, and deductible amount. According to the company website, the average cost of renters insurance is “often less than $15 a month.”

What is typically covered under American Family renters insurance?

The basic coverages of American Family renters insurance include theft or vandalism, fire, and smoke damage, mold, water damage from plumbing, heating, or cooling systems, lightning, windstorms, or hail, explosions, riots, appliances, liability coverage, medical expenses. Not covered is water damage from sewer back-up, sump pump overflow, and septic backup.

Can you cancel American Family renters insurance?

You can make a cancellation request at any time for your policy, and it should go into effect at the end of your current billing cycle. Be sure to request refunds for any months paid in advance beyond your cancellation date. Generally, there are no fees associated with policy cancellation.

How long does it usually take to buy American Family renters insurance?

Usually, buying renters insurance is a quick process, often taking less than half an hour. With American Family’s focus on convenience, you can expect them to try and make this process as quick and easy as possible.