American Family Insurance offers a range of popular insurance products through the "agent" model, meaning you work with a dedicated local agent to find the right coverage for your needs. That said, its digital platforms may not be as strong as those of other insurers, earning lower ratings than some competitors.
Business Insider compared American Family to the best homeowners insurance companies and found it to be a good choice for its comprehensive home insurance coverages and ability to mix and match with other insurance products.
American Family Homeowners Insurance Pros and Cons
American Family Homeowners Insurance Pros
- Save up to 23% by bundling insurance products
- Competitive annual premiums for homeowners insurance
- Higher customer ratings from review sites than competitors
American Family Homeowners Insurance Cons
- Only available in a limited number of states
- Lower-than-average ratings from JD Power for claims and customer satisfaction
- Expensive premiums
American Family Homeowners Insurance Overview
American Family Insurance dates back to 1927 when it launched as Farmers Mutual Automobile Insurance Company in Madison, Wisconsin. The name was one of many changes throughout the years. AmFam, as it's often called, offers insurance for cars, boats, motorcycles, recreational vehicles, homes, pets, and more. It aims to provide a full suite of personal insurance products to keep customers in the "family."
American Family Insurance has a strong customer service reputation with insurance agents to help with quotes, claims, and more. While AmFam offers digital services, it's unlikely to compete in that metric with companies like Hippo and Lemonade. Of course, many consumers are looking for more of the service AmFam offers, even if it means fewer online and mobile tools.
Read on for a complete breakdown of all the coverages American Family Insurance offers in its homeowners insurance policies, how to file a claim, and other essential details you'll want to know.
American Family Homeowners Insurance Plans and Coverage
American Family Homeowners Insurance offers a range of home insurance options tailored to various dwelling types, including single-family homes, farms and ranches, condominiums, multi-unit properties, and more.
The Standard Homeowners Insurance (HO-3)
American Family offers three levels of homeowners insurance: Economy (the most basic), Traditional, and Premier (the most comprehensive). Each level provides the same coverage types, but with higher limits for specific coverages.
The downside is that you can't really customize limits and coverage types included if you purchase your policy online, so you may be paying more for coverages that you don't necessarily need.
Take a look at the types of coverage that a standard AmFam home insurance policy includes:
Dwelling
This type of homeowners insurance protects the structure of the home itself from financial losses caused by perils like fire, hail, lightning, theft, vandalism, and windstorms. Policyholders can choose between actual cash value and replacement cost.
Actual cash value pays you what your property is worth right before the covered event, accounting for depreciation, replacement cost coverage replaces your property based on the cost to rebuild your home with current prices.
Other structures
This type of coverage protects other structures on your property, including sheds, fences, garages, and other similar structures. Like dwelling protection, homeowners insurance for other structures protects the property, not your personal belongings.
Personal property
This homeowners insurance protection covers your belongings. Items included in this coverage can be, but aren’t limited to, furniture, household items, electronics, clothing, and more. If you have high-value items, such as jewelry, fine art, or electronics, you may need a rider to cover them.
Loss of use
Imagine your property is ravaged by fire, and it becomes uninhabitable. That's where the loss of use coverage comes into play. This financial protection can cover the cost of hotel or rental stays, takeout food (as you may lack a kitchen), and more while you wait for your property to be refurbished or rebuilt.
Medical expense to others
Liability protection can shield you financially in various situations, including instances where someone is injured on your property or bitten by your dog or cat.
AmFam also includes additional coverages in the standard policy that most insurers would typically charge extra for.
- Extended replacement: Get up to 20% more coverage if your home’s rebuilding costs exceed your dwelling limit.
- Dangerous or exotic animal: If you own a dog that has a biting history, is trained to attack, or you own an exotic animal, this coverage pays for any injuries or damages caused.
- Fungi or bacteria: This coverage pays to repair, restore, or replace property damaged by fungi or bacteria due to a covered loss. It also covers clean up, removal, and disposal.
- Loss assessment: If your homeowners association charges you a portion of the damage caused to shared property (e.g., damage to the gym, playground, or lobby), this can help cover the associated costs.
- Ordinance or law: This increases your dwelling limit by up to 10% to pay for any costs associated with rebuilding your home to comply with local or building codes after a covered loss.
- Pollutant clean-up and removal: This coverage helps you pay for the cleanup of hazardous substances such as lead or mercury, after a covered event.
- Water coverage from an outside water source: If an outdoor water source (e.g., lawn sprinkler, swimming pool, outdoor faucet) causes damage, this coverage can help repair or rebuild your property.
Additional Cover Options (Riders) Offered by American Family Homeowners Insurance
American Family offers a wide range of coverages to fit your needs. Here are some of the types of riders you can add at an extra premium:
- Diminishing deductibles: This rider lets you qualify for a lower deductible on your policy each year you remain claims-free.
- Equipment breakdown: This rider helps pay for repairs and replacement when major home components, such as appliances, are ruined due to mechanical, electrical, or pressure system breakdowns.
- Hidden water: This extra coverage provides financial protection against damage caused by leaks in areas blocked by large appliances or other areas you wouldn't usually check.
- Identity fraud expense: You can get up to $25,000 in reimbursements for activity related to identity restoration.
- Scheduled personal property: Increase your personal property protection by scheduling your jewelry, gemstones, watches, and furs. This rider provides up to $2,000 in coverage for each type of valuable.
- Personal injury: If you’re sued for libel, slander, false arrest, and wrongful entry, this coverage helps you with your legal fees, settlements, and other associated costs.
- Service line: This endorsement covers your underground lines, such as your water, sewer, and electric lines, from perils outside your standard policy (e.g., mechanical breakdown, wear and tear, and tree growth)
- Flood: Amfam offers flood insurance through the National Flood Insurance Program (NFIP). This coverage is a standard exclusion in homeowners insurance, but adding it could protect you from a sudden overflow of water into your home, which is crucial if you live in a high-risk flood zone.
- Matching siding protection: This protection ensures the replacement siding on your home matches your old siding in the event of a covered peril. In extreme circumstances, it will cover the cost to replace all your siding to ensure it matches the original.
- Credit theft protection and monitoring: AmFam's partnership with CyberScout allows policyholders to add credit theft protection and monitoring services. Users can identify the signs of identity theft early and determine how to receive identity theft protection for the future.
- Sump pump and water backup: This rider provides added protection for your dwelling and belongings in case of water damage related to a burst pipe or other similar issues.
- Home renovation: If you’re undergoing a home improvement or renovation project, this coverage will help you with rebuilding costs if your foundation collapses. It can also cover damage and theft of your construction materials.
- Roof damage: The standard homeowners insurance policy typically only reimburses you for the depreciated value of your roof. This coverage bridges the gap between that and your roof’s replacement cost.
- Senior living protection: You add this endorsement to protect an elderly loved one’s personal belongings if they reside in a senior facility or other care environment.
Renters Insurance (HO-4)
American Family offers renters insurance, which covers your personal property, personal liability, medical payments to others, and loss of use.
You can also add various extra coverages to enhance your policy with coverage for:
- Equipment breakdowns
- Flash floods
- Water backup
- Identity theft restoration
- Scheduling your personal property
Condo Insurance (HO-6)
The standard condo policy with AmFam offers coverage for your condo’s interior, personal property, loss of use, liability, and medical expenses to others.
Some additional coverages you can get include coverage for:
- Hidden water damage
- Water backup
- Additional personal possessions
- Diminishing deductibles
- A property at another location
- Personal injuries
Mobile/Manufactured Home Insurance (HO-7)
If you own a mobile/manufactured home, you can insure it through American Family. A basic policy provides coverage for dwelling, other structures, personal property, living expenses, and liability.
Optional coverage include protection for:
- Equipment breakdowns
- Hidden water damage
- Water backup
- Matching undamaged siding
- Roof damage
- Diminishing deductibles
American Family Homeowners Insurance Cost
The average cost of homeowners insurance with AmFam is about $4,203 per year, or $350 per month, which is significantly more expensive than that of competitors. However, your actual rates will vary based on your location, home details, and individual factors, such as your claims history or credit score.
Note: This quote was obtained for a home with a replacement cost of $296,900 in Arizona, based on a 38-year-old home buyer with a good credit score and no claims history.
American Family Homeowners Insurance Discounts
American Family’s discount offerings may not be as extensive as those of its competitors, but it offers lots of unique discounts that many people can qualify for. Here are the types of discounts that you can score with this company:
- Multi-policy: Get up to 23% off on your AmFam home and auto insurance premiums by bundling them together.
- Smart home devices: Save on your premiums by having remote home security and safety monitoring systems.
- Age of home: You may qualify for this discount if you're home is under 15 years old.
- Renovated home: If you renovated your plumbing, electrical, or heating systems in the last 15 years, you may be eligible for this discount.
- Insurance payment: Opting in to auto pay, full pay, and paperless statements on your policy can earn you a discount.
- Loyalty: If you stay with AmFam for a year or more, you may be able to save on premiums.
- Generational: If you're between the ages of 18 and 30 and your parents have an active home or Auto insurance policy with AmFam, you may qualify for this discount.
How to Purchase and Manage an American Family Homeowners Insurance Policy
You can get an American Family online quote by going to Amfam.com, selecting “Home,” clicking “Get Homeowners Insurance Quote”, and entering your ZIP code.
You can also do so by contacting a local insurance agent. You can find a representative in your area by using AmFam’s “Find an Agent Tool”. Simply enter your ZIP Code to find agents near you.
Here is the type of information you’ll need to provide for a quote”
1. Personal Information
- Name and birthdate
- Marital status
- Phone number and email
- Desired start date
- Are you the homeowner?
- Do you reside in more than one place?
- Number of occupants (including yourself)
2. Property Details
- Address to insure
- Property type
- Year built/year purchased
- Number of stories
- Square footage
- Roof: slope, surface, year installed/replaced
- Foundation type
- Exterior wall finish
- Garage type and number of spaces
- Do you have solar panels on your dwelling?
- Would you like the policy to be enrolled in Wildfire Defense Services?
3. Home Use & Occupancy
- Home use (Primary, business, daycare, rental)
- Do you use your home as a business or daycare?
- Do you rent your home to others?
- Do you own a permanently installed pool?
4. Safety & Risk Factors
- Heating system / Fuel type
- Electrical system and amps
- Is there solid fuel heat in any garage/structure with a vehicle or flammable fuel storage?
- Are there any dogs on the property with a history of biting?
After you purchase your policy, you can access your AmFam account online or through your mobile app. Here are the features you can access digitally:
- File and track your claims
- Set up AutoPay
- Pay your bill
- Get your insurance IDs
- Manage your policies
- And more
Note: AmFam is available in 19 states, including Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.
How to File a Claim with American Family Homeowners Insurance
Since American Family Insurance works with local agents specializing in insurance products for your area, you can always start the claims process in your agent's office, online, or over the phone by calling 1-800-MYAMFAM (1-800-692-6326). In addition, many AmFam policyholders use its online portal to file and track their claims.
Before you file a home insurance claim, you'll need to gather the following information and documentation:
- Date and time of the event
- Description of what happened
- Photos of damage done to the property
- Insurance and contact information of any others involved (if applicable)
After you submit your home insurance claim, your insurer will assign a claims representative to your case. They will reach out to assess the damage, collect any necessary details, and walk you through the next steps.
It can take a couple of days to a few weeks to complete your claim and receive your settlement. The amount of time the claims process takes will depend on factors such as your case’s severity and if it occurred during a natural disaster, when other affected homeowners may also be filing claims
American Family Homeowners Insurance Customer Reviews and Ratings
American Family received very mixed reviews from customers. Many have reported experiencing nonrenewals of their policies with the company. And even if their policy was renewed, they pay substantially higher rates. Others have praised the company for its helpful and friendly service during the policy purchasing process.
It's worth noting that your experience with the company may vary. A good way to ensure a smooth claims process is to understand exactly what your policy covers and have all your information prepared.
Here’s how the company scored with different review sites:
- Better Business Bureau: 1.14 out of 5
- Trustpilot: 4.5 out of 5
- Consumer Affairs: 3.6 out of 5
On the other hand, AmFam users are generally satisfied with its mobile app. But it has received lower-than-average ratings from Google Play than its competitors.
- Google Play: 3.3 out of 5
- App Store: 4.7 out of 5
The table below shows AmFam’s ratings from various third-party agencies:
| Rating agency | Rating | What it means |
| AM Best | A | Excellent financial strength |
| JD Power (Customer satisfaction) | 638 out of 1,000 | Slightly worse customer satisfaction than the study average of 640 |
| JD Power (Property claims) | 680 out of 1,000 | Slightly worse customer satisfaction than the study average of 682 |
| NAIC | 0.72 | Fewer complaints than expected for its size |
American Family Homeowners Insurance Alternatives
See how American Family compares to three other options for home insurance coverage: Lemonade, Allstate, and Hippo.
American Family vs. Lemonade Homeowners Insurance
Lemonade homeowners insurance is an online insurance provider offering affordable coverage with minimal hassle and stress. The company lets you apply for an insurance quote online or through its mobile app, but you can also call in to speak with an agent over the phone. It is designed for tech-savvy customers with newer smartphones. Meanwhile, American Family Insurance offers online quoting, but it also works with licensed insurance agents to provide more options.
In addition to home insurance, Lemonade also offers car insurance, renters, pet, and life insurance coverage. Again, American Family Insurance offers a similar selection of insurance products. The company is only licensed in a limited number of states, but its website states that it is working on obtaining licenses in all 50 states.
Lemonade's rates are comparable to those of its large competitors, which are generally more affordable than those of American Family policies.
Lemonade Homeowners Insurance Review
American Family vs. Allstate Homeowners Insurance
Allstate homeowners insurance is another insurance provider worth considering if you want a local agent to help you with quotes, claims, and policy management. Its coverage is robust, with all the significant coverages and protections one would expect. In addition, you can tailor your plan based on the types of protection you want, policy limits, deductibles, and riders.
While Allstate also offers a mobile app to file and track claims, you can manage the entire process through its online portal or with the help of your assigned insurance agent. In addition to home insurance, Allstate also offers renters, landlord, auto, life, business, life insurance, and some investment products.
Allstate's premiums are higher than the national average. However, it offers many discounts, which an Allstate agent should be able to review for you to ensure you're getting the most competitive rates. American Family Insurance offers fewer discounts and has higher rates than Allstate.
Regardless of which company you choose, we recommend comparing similar policies to see which company offers more affordable rates for your unique situation.
Allstate Homeowners Insurance Review
American Family Insurance vs. Hippo Homeowners Insurance
Hippo Homeowners Insurance is another insurance company that sells and manages insurance policies online. Hippo combines homeowners insurance with smart home technology products to make your home safer and more secure. For example, it provides leak sensors, outside cameras, motion detectors, and smart smoke alarms. Hippo aims to prevent claims by automating safety. American Family doesn’t offer comparable programs.
According to the website, you can get a quote for Hippo home insurance in as little as 60 seconds. Hippo also claims to insure more than 200,000 homes across the United States. American Family offers a more personalized approach, but Hippo is particularly appealing to many younger homeowners.
Hippo Homeowners Insurance Review
Why You Should Trust Us: What Went into Our American Family Homeowners Insurance Review
To write this American Family Insurance review, we reviewed the available coverage options from dozens of insurance companies across the United States. We compared factors like customer and claims service ratings, included coverages, and available riders.
We also compared American Family Insurance to other insurance providers like Amica, GEICO, Progressive, USAA, and online insurance providers like Lemonade and Hippo Insurance.
- Pricing: We evaluated quotes using a sample buyer profile to assess affordability. But since pricing is just one piece of the puzzle, we also looked into the overall value of the policy, including additional benefits and discounts that can increase its worth.
- Coverage Options: Customizing your policy with optional coverages is crucial. We examined the variety and flexibility of American Family’s offerings to understand how they compare with other insurers.
- Customer Experience: To assess how AmFam stacks up in customer service, we analyzed reviews from platforms like Trustpilot, the Better Business Bureau, and ConsumerAffairs. We also compared these insights with feedback from customers of other insurance providers.
- Claims Satisfaction: The ease and dependability of the claims process are essential. We looked at JD Power ratings to gauge how satisfied customers are with American Family's claims experience and how this compares to industry competitors.
- Financial Strength: We used AM Best ratings to evaluate American Family’s financial stability and its ability to fulfill claims, whether during a typical or catastrophic scenario. An A++ rating signifies outstanding strength, while lower scores may suggest increased financial risk.
Read more about how Business Insider rates homeowners insurance.
FAQ
Is American Family Insurance good at paying claims?
American Family Insurance earned a score of 680 out of 1,000 in the latest JD Power Property Claims Insurance Study. The segment average was 682, meaning American Family Insurance is slightly worse at paying claims compared to many of its top competitors. But if you file a claim, the company will likely pay it based on your policy's terms.
Does American Family Insurance offer renters insurance?
American Family Insurance offers renters insurance, which can also be bundled with auto insurance.
What do customers say about American Family Insurance?
American Family Insurance gets positive ratings for its customer satisfaction during the policy purchasing process. But many past users complain about insurance rates seeming to inch up each year, even when they don't file claims. Some customers also say filing a claim was frustrating overall, and they had trouble getting American Family Insurance to return their calls. Much of the American Family Insurance experience depends on the agent you work with.
Is American Family better than State Farm at homeowners insurance?
American Family is more expensive but offers more coverage in the standard policy and unique options. It also has better claims service. Consider State Farm if you want to save money and are a regular homeowner with basic needs. Consider AmFam if you have more comprehensive and complex needs and are willing to spend a higher amount on coverage.
What is American Family home insurance company?
American Family is a mutual insurance company, meaning it is owned by its policyholders. The company offers many property insurance products, including renters, condo, and manufactured/home insurance. You can also buy other types of policies such as life, pet, travel, auto, and business insurance. For more information on its products and offerings, visit Amfam.com.
