Our verdict: American Family provides comprehensive coverage, excellent discounts, and a variety of property insurance policies at the best possible price.
American Family was founded in 1920 with the vision to become the most trusted insurance company on the market. In 2017, it installed Wisconsin’s largest rooftop solar array on its headquarters, which shows that it cares about sustainability.
The company is a direct provider of American Family home insurance and other policies, focused on giving back to its customers and communities. It’s the fourth-largest Wisconsin-based company with over 10,000 employees and 3,000 agents and is featured on the Fortune 500 list.
Keep reading to learn more about the various property insurance policies and their features and see how the price rates and customer service compare to other popular providers.
American Family Home Insurance Pros and Cons
Each insurance company has specifics that separate it from its competition. This list of the main advantages and disadvantages of American Family will help you decide whether it is the right choice.
Pros
- Easy-to-use website
- Variety of coverage options and add-ons
- A long list of discounts
- 24/7 claims support
- Good mobile app
- Available local agents
Cons
- Not available nationwide
- You can’t purchase a policy online without talking to an agent
American Family Homeowners Insurance Overview
American Family has an easy-to-use website, so you won’t have issues finding any information about its home insurance policy. In addition, you’ll enjoy a home insurance calculator, access to personalized assistance, and a checklist that will help you prepare for the purchase.
When it comes to coverage, the standard policy is similar to many offers on the market. It protects the dwelling, detached structures, and personal items from various perils and further includes liability and other features. It comes with customizable options, like equipment breakdown coverage.
Features
Let’s take a look at the features of American Family home insurance and other property-related policies.
Home
The standard home coverage includes the following:
- Fire and smoke
- Tornados and hail
- Weight of ice damage
- Leaking roof
- Lightning
- Theft, vandalism, or riots
- Wildfire
- Frozen interior plumbing
- Power surges
The policy protects your dwelling, other detached structures like garages, swimming pools, or gazebos, and your personal belongings. You’ll also enjoy temporary living expenses coverage that will help you pay for your hotel and food if your home becomes uninhabitable.
American Family home insurance coverage includes liability protection against lawsuits and claims. Additionally, the policy can be customized to expand coverage.
The equipment breakdown is an additional feature that protects you in case your appliances, home systems, or smart home devices get broken. It covers:
- Refrigerators, ovens, and stoves
- Washers and dryers
- Computers
- Well pumps
- Garden tractors, etc.
The sump pump and water add-on covers the cost of repairs if the equipment malfunctions and causes damage to your property. American Family home insurance has another add-on that covers hidden water damage if leaks happen within the plumbing systems.
Matching siding protection will help you replace the damaged sections of siding in the case of a covered loss. The following items are not covered by this policy:
- Maintenance
- Normal wear and tear
- Floods
- Earthquakes
Renters
If you’re renting an apartment, house, or condo, chances are you need insurance that will protect your personal belongings. This type of American Family house insurance also includes liability and additional living expenses if your rental becomes uninhabitable.
Renters insurance protects your furniture, clothing, electronics, and similar, and it includes medical bills. It secures all the items inside your rental unit, while your landlord’s insurance covers the home structure.
Condo
If you own a condo, your association probably has a master policy that doesn’t insure the items inside your unit. That is why you should consider purchasing condo insurance. Such American Family home insurance will keep your belongings protected in case of:
- Fire
- Theft
- Water damage from plumbing
- Power surges
It also covers temporary living expenses, liability, collapsing building, debris removal, emergency removal of property, mold, bacteria, inflation, and more. You can customize your condo insurance with the following add-ons:
- Property coverage for possessions
- Sump pump failure and water backup
- Additional liability
- Hidden water damage protection
Manufactured Home
Not many companies offer manufactured home coverage, but American Family has mobile home insurance that includes the following:
- Matching siding — helps you match the siding of your home if it has been partially damaged;
- Other structures — your agent can help you insure other structures like a shed;
- Trip collision coverage — covers any damage that can happen to your home while you’re moving;
- Hidden water damage coverage — covers the damage caused by unexpected water leaks.
Farm and Ranch
The American Family homeowners insurance coverage for farms and ranches includes:
- Dwelling
- Farm personal coverage
- Fair rental value
- Farm liability
- Farm outbuilding
- Additional living expenses
It also comes with great add-ons that help you personalize your policy, such as:
- Farm equipment breakdown
- Farm income coverage
- Replacement cost coverage for irrigation systems
- Additional farm and ranch property coverage
- Supplementary coverage
- Other types of coverage
Landlord
American Family can provide you with a landlord policy that covers your building, general liability, medical expenses, and more. You’ll also enjoy the Landlord Toolbox that gives you access to:
- Tips on how to promote your rentals
- Application and tenant screening
- Managing move-outs
- Property maintenance tips
- Info on laws and your duties
Mobile App
American Family insurance app has numerous features to help you manage your policies, documents, and payments. With this app, you can:
- Access proof of insurance
- Set up autopay
- Make changes to your policy
- File claims
- Find an auto repair shop
User reviews are mixed, but the overall score of 4.3 shows that most are satisfied with the app. However, it’s geared primarily towards auto policyholders, and it’s not optimized for home insurance management.
Flood
Like many other insurers, American Family offers flood insurance through the National Flood Insurance Program. You don’t necessarily have to obtain such coverage. However, consider that floods can happen anywhere, and the average insurance claim is $39,000.
With NFIP and American Family, you can enjoy flood insurance coverage that includes:
- Your home and foundations
- Clothes, furniture, and electronics
- Electrical and plumbing
- AC and heating
- Appliances
- Installed carpeting, paneling, and other items
Earthquake
Unfortunately, some locations are more prone to earthquakes than others. If you live in such a state, chances are you’ll need mandatory coverage.
You can always add American Family earthquake insurance to your standard policy and enhance the coverage. It can be added to a home, condo, and rental property insurance and protects:
- The dwelling and other structures
- Fences, driveways, sidewalks
- Construction materials on-premises
- Personal property, and more
This policy comes with a special deductible. Contact your agent to receive detailed information.
Financial Strength
According to the company’s 2020 report and 2021 American Family insurance ratings for its financial strength, the outlook is positive. A.M. Best ranks it with an A for 19 consecutive years. American Family also has an affirmed credit rating of A+.
Fitch ratings affirmed the A+ financial strength rating, and S&P assigned it an A. American Family has 10.6 billion in customer equity and almost $13 million in revenue for 2020. Based on that, you won’t have issues with your claims.
American Family Insurance Customer Service
There are several ways to contact American Family customer service. You can call the number on the official website, send an email, or go to a live chat with a representative. The last feature is available Monday to Friday, from 8 AM to 8 PM CST.
In its 2020 Home Insurance Study for overall customer satisfaction, J.D. Power ranks American Family just below the segment average, with a score of 821/1,000. That indicates there’s room for improvement. However, the customers seem to be happy with the service they received.
- NerdWallet — 4.5
- Clearsurance — 4
- Consumeraffairs — 4
- Valuepenguin — 80%
American Family Home Insurance Quote
Your insurance quote is determined by several factors — the location and age of your home, preferred add-ons, and the coverage you need to include in your policy. Depending on your state, you might have to purchase additional coverage, which can increase your premium.
The average home insurance quote is usually calculated for the $250,000-worth dwelling. In the case of American Family, the annual cost is about $980.
Still, only the insurance agent can tell you the exact price of your home policy, especially since American Family offers great discounts to help you save.
American Family Insurance Discounts
Below you can find all available discounts that you might qualify for.
Smart Home
If you have installed any kind of smart device that can increase the security of your home, like burglar alarms or smoke detectors, you can qualify for this discount.
Bundle
Combining two policies together is a standard way of saving on your insurance. For example, with American Family, you can bundle your auto and home policies and save up to 29% of the total cost.
Age of Home
Newer homes usually have fewer claims, so if your home is newer than 15 years, chances are you could qualify for this discount and lower your American Family home insurance quote even more.
Loyalty
If you’ve been a loyal member of the American Family for many years, you might be eligible for a lower premium.
Generational
If you’re between 18 and 30 and your parents have active auto or home insurance with American Family, you could receive a discount.
Renovated Home
If you’ve completely replaced plumbing, electrical, or heating systems in the last 15 years, ask your agent about this deal and save on your American Family insurance quote.
AutoPay, Full Pay, Paperless Billing
Your payment habits can be another way to save. If you receive your bills electronically, set up auto payment, or pay your bills in full, you can qualify for a discount.
Diminishing Deductible
If you haven’t filed claims, you can enjoy a $100 diminished deductible for each claim-free year.
No Claims
If you went five years without filing a claim, you’d receive an additional discount.
New Home — for Manufactured Homes
If your manufactured home is less than four years old, you could be eligible for this discount.
American Family Home Insurance Rates Comparison
The price of your homeowners policy plays a crucial role in the choice of a provider. Here’s the rates comparison to help you decide.
American Family vs. Esurance
The average homeowners policy with American Family costs about $980 each year. That is way lower than the national average of $1,600. With Esurance, your annual premium will be about $3,670, which is too expensive in comparison.
Regardless of the coverage options and discounts, we believe that Esurance can’t beat American Family home insurance cost.
American Family vs. The Hartford
According to some estimates, the annual premium with The Hartford is about $1,076 for a $250,000-worth dwelling. The company also has a solid list of available discounts to help you save on your home insurance policies.
The Hartford, however, offers its service only to the members of AARP, so you’ll have to join and pay an additional $16 fee.
Overall Competition Comparison
Let’s see how American Family compares to three other famous insurers when it comes to customer satisfaction, policy availability, and financial strength.
American Family Insurance vs. State Farm
State Farm is a well-known US insurer with an A++ rank from A.M. Best and an A from S&P. It’s a financially strong company that you should feel safe with. These ratings are similar to American Family’s ratings, and both companies are financially solid.
J.D. Power ranks State Farm with 829/1,000 in its 2020 Home Insurance Study for customer support satisfaction, meaning it provides good customer support and policyholders are usually happy with the service.
State Farm’s policies are available in all states besides New York, Massachusetts, and Wisconsin, so it serves more customers than American Family.
Progressive vs. American Family
A.M. Best ranks Progressive with an A+, and S&P gives it an AA grade, indicating financial stability and the ability to meet insurance obligations. According to Moody’s, it also has low credit risk.
Regarding customer satisfaction, J.D. Power ranks Progressive with a 797/1,000 score in its 2020 Home Insurance Study, showing the company could definitely improve its customer service. American Family homeowners insurance reviews are better in that regard.
Progressive insurance is available in all 50 states and is a good alternative if you live in a location where American Family is not available.
Nationwide vs. American Family
A.M. Best and S&P give Nationwide an A+ rating for financial strength, and it is a Fortune 500 company. Therefore, you shouldn’t experience any difficulties with claims and payments. Furthermore, Nationwide offers policies in most states, while American Family serves less than 20 states.
In its 2020 Home Insurance Study, J.D. Power ranks American family homeowners insurance with a score of 821/1,000, while Nationwide has an 808/1,000. That indicates American Family offers better customer support service than Nationwide.
Expert Thoughts
American Family has a long history and insurance expertise. Its policies are affordable and suitable for both new and experienced customers. It provides wide coverage options and excellent add-ons that can expand the American Family home insurance even further.
Its mobile app also has high ratings, and the website is packed with details about each insurance policy. You’ll enjoy 24/7 support and the service of local agents. The biggest drawback is that it’s available in only 17 states.
American Family is an excellent choice for home insurance, especially due to the variety of discounts it provides to help you save even more.
People Also Ask
American Family is a well-known US insurance company. It has over 10,000 employees and 3,000 agents in 17 states. It is a Fortune 500 company with excellent financial strength ratings indicating the ability to pay out claims.
It provides multiple types of property-related insurance policies, including home, renters, and condo. While customer support could improve, you’ll still enjoy good service, reliable coverage, and customizable options for a low price.
American Family offers auto, property, and business insurance and added protection. The home insurance policy has excellent coverage options, good customization features, and a long list of discounts.
You can purchase other insurance policies, like renters, landlords, or condo. American Family can also help you insure your farm or ranch. Talk to your agent to find the best coverage for your needs.
The standard home insurance policy from American Family covers the most common issues you could face — fire and smoke, tornados, the weight of ice damage, theft, vandalism, power surges, and more.
The policy covers your dwelling, detached structures, personal belongings, living expenses, and liability. There are also add-ons that you can use to personalize your insurance. They include equipment breakdown and sump pump water damage insurance.
Unfortunately, you won’t be insured against floods or earthquakes, but you can purchase those policies separately.
Many factors affect your monthly premium — your location, home age, claim history, deductibles, and coverage type. You can also lower your home insurance cost with various discounts.
American Family property policy costs about $980 per year for the $250,000-worth dwelling, which is significantly below the national average. However, if you need mandatory flood insurance, you’ll probably pay a bit more.
American Family offers equipment breakdown coverage as an add-on. It protects your most expensive appliances, home systems, or smart home devices against mechanical, electrical, or pressure systems breakdown.
The add-on further includes refrigerators, ovens, stoves, heating and cooling units, well pumps, garden tractors, and more. Its price starts at $30 per year for standard and manufactured homes and $20 for condo and rentals.
However, it doesn’t protect your appliances from normal wear and tear.
Older homes usually cost more to insure and have a history of claims. Such houses are also made with less resistant to fire and water damage materials than new homes. In addition, they may come with rodents and various other issues.
Still, American Family agents can work with you to help you insure your older home. The main difference can be that you won’t be eligible for one of the discounts if your home is older than 15 years.
Most homeowners policies cover water damage if it has happened accidentally and suddenly. If any unexpected event occurs and your appliances or plumbing fails, you’ll likely be able to file a claim and be reimbursed.
However, based on how the damage occurred, the insurance might also be limited. For example, if the reason is poor maintenance or lack thereof, or regular wear and tear, you won’t be paid for your claim.
Regardless, you’ll be able to protect your dwelling and personal property with the comprehensive coverage American Family home insurance offers.
