Review
Updated
This homeowners insurance is a good fit for: Homeowners looking for real-life support from a dedicated agent who understands their situation and can be on hand in the event of a catastrophe.
It is impossible to overstate the value of a comprehensive homeowners insurance policy. Whether you're in the middle of buying a home or shopping around to make sure you have the best coverage on an existing home, landing the right policy protects your finances following a catastrophe. Here, we dive in to American Family insurance to learn what the company has to offer homeowners.
Best for Customizing PoliciesAmerican Family
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Fair = PoorFull American Family homeowners insurance review
Pros
- Customizable policies
- A.M. Best rating of A (Excellent)
- J.D. Power customer satisfaction rating of 831 out of 1,000 -- sixth-highest rated homeowners insurance in the industry
- Price bundling
- Easy-to-snag discounts
- Consistently competitive rates
Cons
- Available in only 19 states
- Must work with an agent to purchase a policy
Top perks
Ability to work with a real agent
It's fair to say that doing business online is convenient. Still, there's nothing like having a dedicated agent who knows you to be there if your house catches on fire or the roof is blown off during a storm.
Customizable policies
American Family agents are pros when it comes to helping you pick and choose the right coverage. While your policy may not look anything like your neighbor's, that's a good thing. That means that you end up covering the things that are important to you.
Excellent customer service
American Family consistently receives high marks for customer service, likely a result of their highly personalized service.
What could be improved
Expansion into more states
The insurer is currently only available in these states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin. That makes it a bit tougher to stay with American Family if you move to another state.
Opportunity to take care of issues online
As mentioned, customers need an agent to make any meaningful changes to their policies. For those who grew up in the age of the internet, this may be a tough pill to swallow.
Alternatives to consider
When looking for homeowners insurance available in all 50 states: Allstate, a company that's been around since 1931, serves every state in the union. Still, American Family typically offers lower rates, especially if you bundle your insurance policies.
For homeowners looking for highly specialized coverage: Chubb homeowners insurance offers some unconventional policy perks, like extended replacement cost coverage. The company also receives high claims satisfaction ratings.
Rates / Pricing
Using a standardized scenario, we compared rates among insurance carriers nationwide. Overall, American Family remains competitive.
| Annual Premium | Standardized scenario 1 |
|---|---|
| $1,710 | American Family |
| $1,832 | State Farm |
| $1,627 | USAA |
| $1,628 | Chubb |
| $1,804 | Allstate |
Data source: Quadrant data.
Discounts available
Shopping for the lowest insurance premium means looking for an insurance company with plentiful homeowners insurance discounts available. Here are some of the discounts offered by American Family:
- Bundling
- New home
- Auto-pay
- Loyalty
- Smart home device
- Generational
- New homeowners
- Paperless
- Renovated home
Coverage options
One nice thing about American Family is the way a homeowner can protect their financial interests from several angles. Here's a sampling of coverage options:
Structure
Covers damage to the structure of the home from perils like windstorms, lightning, hail, fire, theft, and vandalism.
Detached structures
Covers detached structures on the property, including garages, gazebos, fences, sheds, and swimming pools.
Personal belongings
As the name suggests, personal belongings coverage protects personal property in both the home and outbuildings.
Temporary living expenses
If a home becomes uninhabitable due to a covered peril, this coverage helps cover hotel and food expenses.
Liability protection
If someone is injured on your property, liability protection can protect you from liability claims and lawsuits, up to your policy limit.
Extra coverages
It's possible to truly customize a policy by including extra coverage, such as equipment breakdown, sump pump and water backup, hidden water damage, matching siding protection, and credit theft protection.
Application process
While you will need to work with a licensed agent to finalize the application process, you can get a quote online by supplying:
- Your home address
- When the home was built and its square footage
- Details about the construction materials used (for example, whether it includes brick or stucco)
- Number of home occupants
- Any other policies you have with American Family that would qualify you for a bundling discount
Customer service and ratings
As mentioned, American Family scores well in the J.D. Power customer satisfaction survey. When surveyed, customers tend to be honest about their feelings toward a company, a fact that makes American Family's ratings more impressive.
This homeowners insurance is the best option if:
American Family homeowners insurance is best for customers who:
- Want a company with outstanding customer service
- Like the idea of working with real people who get to know them
- Want a policy they can shape to fit their specific needs
But homeowners may want to consider Allstate if American Family is not available in their state, or Chubb homeowners insurance if they want highly specialized coverage, including extended replacement cost coverage, and they value a high company claims satisfaction score.
Our Insurance Expert
Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
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Dana George has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.