American Family Home Insurance - 2023 ReviewUpdated May 30, 2023 Insurance
American Family Insurance was originally founded in 1927 as Farmers Mutual Automobile Insurance Company. Today, the company offers vehicle, personal, commercial, and property insurance to people in most states, including Arizona, Iowa, North Dakota, and Texas.
As one of the largest home insurance companies in the United States, American Family Insurance has worked to help first-time buyers and homeowners afford the homes of their dreams. The company has partnered with other home insurance companies to offer more options and multiple discounts to help homeowners save money on their policies.
American Family Home Insurance Overview
American Family home insurance is available to homeowners in most states across the United States. Homeowners can begin a quote for coverage to determine if their state is covered. Additionally, the company’s long lifespan in the industry can benefit homeowners who want to ensure that they work with a knowledgeable company.
However, there are a few disadvantages to American Family home insurance that prospective customers should know about. First, its website navigation is a bit outdated and, therefore, can be challenging to browse. Also, homeowners in some states may not be able to get coverage, and some homes may not be eligible for a quote without the help of an agent.
Types of Coverage Available
Homeowners can choose from several types of insurance to protect their homes and belongings with American Family home insurance. In addition to traditional dwelling and personal property coverage, the insurance company provides coverage options like home business insurance and roof damage coverage.
Dwelling coverage protects the structure of a home from damage due to weather, vandalism, and other unexpected situations. With dwelling coverage in place, your policy pays up to the amount listed in the policy to repair or replace your home. This coverage also includes attached parts of the home, like an attached garage or porch. In most cases, homeowners will have enough dwelling coverage to cover the full cost of rebuilding their home, should the need arise.
Although dwelling insurance protects your home from many types of accidents and weather hazards, it does not protect against earthquakes and flooding. Instead, these are separate coverages you can add if you’d like for extra protection on your home.
Think of dwelling coverage as protection for the home’s structure and personal property coverage as protection for your belongings. In the case of a fire or other unexpected event that damages your home, you may lose or have damage to your personal belongings. This coverage protects those belongings by offering you a replacement value.
Your American Family Insurance homeowners policy will include a basic level of coverage for belongings. However, you can customize your homeowner's insurance to have more coverage if you believe your belongings are worth more than that amount. American Family home insurance does have some caps on certain types of property, such as $10,000 for rugs and tapestries and up to $2,000 for jewelry and watches.
Vacant and Vacation Homes
Homeowner’s insurance is typically intended for a home used as a primary residence by an American Family customer. However, homeowners can also get coverage through American Family for a vacation home or a home left vacant most of the time, such as a secondary residence or one waiting to be rented.
These types of homes may need less coverage in some areas and more coverage in others compared to primary residences. For example, you might want extra protection against theft and vandalism for a home that’s usually vacant. These insurance products ensure that you get the right level of protection for your vacant or vacation home without overpaying.
Home Business Coverage
Homeowners who use part of their home to conduct business may need home business coverage as part of their American Family home insurance. This coverage is essential for any homeowner who brings customers or clients into their homes as part of their business. If a customer gets accidentally hurt in your home or your business equipment gets damaged or stolen, your home business coverage kicks in.
The company’s business insurance allows up to $15,000 of protection for several types of businesses, like graphic design, accounting, and tutoring companies. Your business will be protected for the same covered perils that are listed in your homeowner's insurance policy.
Loss of Use Coverage
Loss of use coverage helps a covered homeowner pay for temporary housing if they’re displaced while awaiting covered repairs. For example, if a fire damages your kitchen and living room, you may need to stay in a hotel until those rooms are repaired and living in the home is safe. Loss of use coverage, also known as additional living expenses coverage, can help with those and associated costs of living somewhere else, like moving costs and meals.
Homeowners who rent part of their home may also receive all or some of their rent payments from this coverage if the rented part of the home becomes inhabitable for the renter.
Itemized Property Coverage
American Family offers itemized property coverage to help homeowners protect specific belongings beyond the capped limits of typical homeowners insurance coverage. For example, suppose you have jewelry worth more than the $2,000 allowable limit on your policy and several other valuables. In that case, you can opt for itemized property coverage rather than personal property. By naming your jewelry and valuables in this coverage, you can ensure that you receive a fair reimbursement if your items are stolen or damaged in a covered peril.
Homeowners who elect this coverage rather than personal property coverage can also choose to have a lower deductible or no deductible on their policy.
Home Renovation Insurance
Home renovation insurance protects your home during the renovation process. For instance, say you’ve taken out a home improvement loan for a massive bathroom and kitchen renovation and replacing the roof. These projects can be costly, and there’s always the chance of something going wrong during the process. However, with this insurance coverage, your construction materials can be protected from damage, vandalism, or theft, and your foundation can be covered in the event of damage during construction.
Speak with an American Family insurance agent before beginning a renovation project to talk about your coverages.
Water Damage and Backup Protection
Your American Family home insurance policy offers protection against some types of water damage due to accidents, like a frozen pipe bursting. However, water damage caused by a lack of maintenance on your home will likely not be included in your homeowner's insurance policy.
Fortunately, you can add protection for sump pump failures, which can cause water to back up into your home. This protection can also cover sewer system problems causing water damage to your home.
Flood insurance is only required in certain areas of the United States that are prone to flooding. However, homeowners can choose to add flood insurance to their American Family home insurance plan, even if it isn’t required. American Family partners with the National Flood Insurance Program to offer comprehensive flood protection covering everything from curtains to your home’s foundation and roof.
Roof Damage Coverage
Keep your roof protected from weather and unexpected damage with roof damage coverage. Your standard home insurance policy will cover some roof damage as a result of covered perils. However, you can add extra coverage.
Many homeowners choose to cover their roof for the replacement cost value, which is the amount it would cost to replace your roof if it needed to be replaced today. This can offer higher reimbursement than covering your roof for its actual cash value, which is typically standard in a homeowners policy.
Are you concerned about your smart home systems and important home systems breaking down due to other problems in your home, like an electrical failure? Sometimes, new appliances and other new equipment simply stop working after only a couple of years of normal use.
In this case, equipment breakdown coverage might be right for you. This insurance coverage helps a homeowner pay for repairs and replacements of equipment that can be costly to fix, like appliances, healing and cooling systems, and swimming pool equipment.
Equipment breakdown coverage is typically better than a home warranty. Home warranties charge higher annual premiums (about $500/yr) and you also have to pay for service visits. On the other hand, equipment breakdown coverage can be added to your premium starting at only $30.
American Family has other types of home insurance that could improve your homeowner's policy and home protection, depending on your unique homeownership situation. Here are a few additional coverages you can add to your policy:
- Matching siding, which allows you to replace part of your siding to match with the rest if it’s damaged in weather or another unexpected event. This coverage can start as low as $25 a year.
- Service line coverage, which helps you cover the costs of repairing or replacing damaged sewer, water, and power lines.
- Senior living insurance can be added to the homeowner's insurance policy of a person who has moved into an assisted living facility or nursing home to protect their belongings.
Homeowners Insurance Packages
American Family offers three packages for home insurance protection to cater to the diverse needs of homeowners and their homes. While homeowners can choose to customize any coverage plan with American Family to get more protection from liability coverage or personal property coverage, for example, these plans provide a helpful starting point for getting the right amount of coverage.
Economy Protection (Good)
Economy Protection gives you the best value while still offering good protection for your home. With this plan, you’ll get smaller coverages for medical expenses, personal living expenses, and other protections. These coverages depend on the amount you have selected for dwelling coverage.
Under the Economy Protection plan, your personal property coverage equals 50% of the amount you select for dwelling coverage, and loss of use coverage is 20% of your dwelling coverage. Economy Protection does not include optional coverages, like equipment breakdown or jewelry coverage.
Traditional Protection (Better)
Traditional Protection blends better coverage and affordability, although your premium will be higher with this plan than with Economy. You’ll get additional coverages, though, like identity fraud expense coverage and service line coverage. The Traditional Protection plan also allows up to $5,000 in coverage for jewelry, watches, furs, and rugs and provides up to $25,000 in medical coverage compared to the Economy plan’s $5,000 coverage. With this plan, you’ll also get $300,000 in personal liability insurance per occurrence.
Premier Protection (Best)
Although you’ll pay the highest home insurance premiums with Premier Protection, you’ll also get the most comprehensive coverage from American Family. Premier Protection pays higher limits for items covered under personal property protection and personal liability coverage. It also offers 30% of your dwelling coverage as a coverage limit for loss of use protection. Premier Protection includes optional coverages, like personal injury, identity fraud expense, service line, and equipment breakdown coverages.
Pricing and Costs
The average homeowner pays about $1,200 per year for home insurance in the United States. However, the exact costs you’ll pay depend on where you live, as some states are much costlier with home insurance, on average, than other states.
According to American Family Insurance, Honolulu, Hawaii, has among the cheapest home insurance rates at about $490 per year. Other affordable locations include Oceano, California ($881/year), Burlington, Vermont ($1,107/year), and Potomac, Maryland ($1,144/year).
On the other hand, some homeowners in other areas of the country pay thousands per year for home insurance. Islamorada Village of Islands in Florida ranks among the highest for home insurance, costing about $6,295 per year, followed by Louise, Texas ($5,911/year) and Mobile, Alabama ($5,752/year).
The size of your home matters, too. That’s because American Family considers the cost necessary to rebuild your home when calculating dwelling coverage. As this cost rises, the amount of your home insurance increases, too. Larger homes need more materials and time to rebuild than smaller homes and, therefore, will also need higher dwelling coverages.
Finally, the optional protections you add can influence how much you pay each year in home insurance. For instance, naming your valuables could significantly adjust your pricing compared to getting blanket coverage for your personal belongings. Also, adding equipment breakdown coverages, flood insurance, and other protections you want for your home can increase costs.
Home Insurance Deductibles
Deductibles are standard parts of most homeowners insurance policies. American Family homeowners insurance policies require you to pay a deductible before specific coverages take place after filing a claim. If you have a $2,000 deductible for roof coverage, for example, you’ll pay $2,000 before American Family begins paying the remaining amount for repairs.
A higher deductible usually results in lower premiums because you’re required to pay more money out of pocket before insurance kicks in. Meanwhile, a lower deductible requires the insurance company to pay more, so you’ll pay a higher premium when you choose this option.
American Family offers a Diminishing Deductible, which cuts off $100 from your deductible each year you do not file a claim. Therefore, a $1,000 deductible can drop to $500 by the fifth year without a claim. American Family’s Diminishing Deductible can shave off a maximum of $1,000 from your homeowner's insurance deductible over time.
Even if your American Family home insurance quote is more affordable than quotes from other companies, you may qualify for even lower rates thanks to the many discounts the company offers.
For example, a home that’s only a few years old may qualify for a discount. American Family also provides homeowners with savings for bundling their other insurances, like auto or commercial insurance, with their homeowner’s insurance, being a loyal customer of one year or longer, or having parents with active policies from American Family Insurance.
You can also save some money on your premium simply by signing up for autopay, a convenient service that automatically deducts the price of your home insurance from your bank account. Paying in full and going paperless may also qualify you for discounts. Installing smart home devices or energy-efficient appliances could also lower your bill.
The best way to see what discounts you might be eligible for is to speak with an American Family insurance agent to get a quote.
How To Get a Quote
You can start the quoting process for American Family home insurance by visiting the website and clicking on the "Get a Quote" button. Enter your basic information, such as your name, address, and phone number. Then, provide information about your home, such as the square footage, the number of bedrooms and bathrooms, and the type of construction. Finally, select the coverages you want to include in your policy and answer a few questions about your claims history, if applicable. The website will pull up your quote, which you can review and use to purchase a policy immediately if you’d like.
Note that not all quotes can be furnished online. Homeowners wanting additional coverage or those with unique situations, like a home business, may need to call American Family customer service at 800-692-6326 to continue the quote process.
How To File a Claim
To file an American Family insurance claim, you can either call the company at 800-692-6326, use the MyAmFam app, or file a claim online at their website. When you file a claim, you will need to provide the following information:
- Your name and contact information
- The policy number of your insurance policy
- The date and time of the incident
- A description of the incident
- The amount of damage or loss
- Any supporting documentation, such as photos or receipts
Once you have filed your claim, an American Family claims adjuster will contact you to discuss your claim and begin processing your claim.
Keep in mind that filing a successful home insurance claim with American Family relies on a few things, like being prepared to provide supporting documentation as quickly as possible and providing accurate information when filing your claim. Also, be sure to report your claim as quickly as you can following the incident.
American Family Mobile App
The American Family Insurance app, also known as MyAmFam, is a mobile app for American Family customers to easily manage their accounts wherever they are and whenever they want. The convenient mobile app provides access to your online account, allowing you to see your bill, make a payment, and view your coverage plans from your phone.
Perhaps one of the app's best features is that you can track your claims right from your device. The app displays information about your claim and shows you exactly where it is in the process.
Is American Family Homeowners Insurance Right for Me?
We understand the importance of finding the best homeowners insurance for your home, budget, and family. After all, when issues arise with your home, it’s your homeowner’s insurance that often comes to the rescue.
With its longstanding presence in the insurance industry, financial strength, customer satisfaction, and impressive list of insurance products, American Family home insurance is the right choice for many homeowners. Customers also enjoy the company’s discounts, easy-to-use mobile app, and additional coverages that allow them to customize their homeowner’s insurance to their needs.
Take some time to browse the website and request an online quote as you research different companies. If you have any questions along the way, contact customer service to speak with an American Family Insurance agent who can answer them. You can also locate a local agent who you can visit in person to discuss concerns, ask questions, and receive guidance as you consider becoming an American Family customer.