Established in Shanghai, China back in 1919, American International Group (AIG) has more than a century’s experience in providing exceptional insurance policies and services to both individuals and businesses. Eventually, the insurance carrier established its first headquarters in New York City.
AIG, a global insurer with a presence in multiple countries like Cuba, Japan, and Germany, is widely recognized for its life and commercial insurance offerings. Apart from these, the company also provides home and auto coverage specifically designed for affluent individuals in the United States.
With a legacy that spans numerous years and an extensive scope that boasts worldwide coverage, AIG has become synonymous with unparalleled stability. The conglomerate’s total assets currently amount to a staggering $527 billion, facilitated by its operations in more than 70 countries and jurisdictions.
As grandiose as their insurance products sound for elite homeowners of the country, we wanted to get down to the truth. Keep reading to see our review of AIG’s home insurance. We’ll see just how comprehensive their coverage gets with their home insurance. Plus, we’ll see how their customers feel about their prices, service, and claims process.
AIG home insurance coverages & premiums
AIG caters to high-income homeowners by providing a variety of property casualty protection services. There are numerous policies provided by the insurance company, which means you can select the coverage option that suits your requirements. Moreover, you’ll have the ability to bundle your policies if you require more than one type of protection for your belongings.
However, it’s important to keep in mind that AIG’s luxury automobile, excess liability, and life insurance premiums can accumulate swiftly before you begin consolidating. AIG’s coverage limits are greater than the norm, which may justify the expense.
That said, AIG only insures properties that require over $750,000 in dwelling coverage. The average cost of home insurance with this much dwelling coverage ranges from $751 to $6,986 a year. The biggest factor for such a vast difference in price lies in the level of risk carried with different locations.
Quite a few customers report that they were able to get fair and affordable premiums by insuring with AIG. Policyholders state that you get what you pay for. AIG’s coverages are adjustable as needed, which can help those on a budget. AIG’s vast coverage extends to home insurance policies and includes thorough protection.
AIG’s homeowner insurance policy is exceptional not for its variety, but for its unique additional policy provisions, which include:
- Dwelling coverage: Insurance coverage for the primary residence covers various perils such as natural disasters, unintentional damage, home invasions, and vandalism, among others. This policy offers maximum benefits for repairing or replacing the primary dwelling.
- Other structures: The peripheral constructions situated on the premises have fare covered by the same perils. These structures consist of separate garages, sports amenities, storage facilities, animal habitats, guest houses, and more.
- Personal property: This contains coverage for personal belongings that extends to various items like clothing, furniture, electronics, kitchen appliances, etc. The majority of claims made for these items are not restricted.
- Personal liability: Customers are protected against legal and medical liabilities through personal liability coverage. This type of coverage deals with the consequences of any damage caused to a neighbor’s property and reimburses the customer accordingly for legal expenses. Additionally, it pays for all medical bills caused by injuries on the property, irrespective of who suffered the injury.
- Loss of use: Should a client be unable to reside in their home during repairs, AIG will take responsibility for their expenses, which may include hotel accommodations, meals, and other necessary bills.
- Medical payments: Applies a smaller amount of coverage to take care of the costs associated with incidents that require minor medical attention.
AIG homeowners insurance discounts
A thorough analysis of AIG’s insurance helped us discover the scope of discounts or credits that homeowners can receive. Most of these are used as incentives for customers to assist in, and benefit from, safeguarding their homes and belongings. They include:
- Loss-free discount: Exclusively for clients with no history of home insurance claims within the last five years or longer.
- New/Renovated homes discount: Available for homes that have been newly constructed or renovated within the past decade.
- Burglar alarm discount: Designed for residences that have direct reporting or central-station systems installed to detect and inform about attempted break-ins.
- Fire alarm discount: Offered for homes equipped with fire alarms that have a system for reporting directly or through a central station.
- Auto water shut-off discount: Available for households that utilize value systems to oversee and safeguard their plumbing systems in their primary abode.
- Gated community discount: A residential area guarded by security personnel and equipped with locked gates or checkpoints will earn a credit.
- Private collections discount: Applicable for individuals possessing a private client group private collections insurance policy that has a minimum premium of $1,000.
- Sprinkler system discount: By having a residential sprinkler system that safeguards every enclosed space, you are eligible for credit.
- Caretaker credit: Receive a discount if a caretaker is employed on a full-time basis and resides on the property throughout the year.
- Wildfire protection discount: California offers credits for wildfire prevention measures, which can include outdoor sprinklers, ember-proof ventilation, annual brush removal contracts, permanent wildfire spray systems, or portable fire break systems.
Additional coverages available from AIG
AIG’s homeowner’s insurance policy sets itself apart with its exceptional coverage options. These optional coverages make AIG an ideal choice for individuals with high-value homes who require tailored and comprehensive insurance protection. These bonuses and endorsements include:
- Guaranteed replacement costs
- No obligation cash settlement options
- Scheduled personal property
- $25,000 worth of business property coverage
- Water backup
- HOA loss assessment
- $5,000 worth of landscaping coverage
- Building ordinance: Pays the extra cost of getting your home up to code after a covered loss.
- Pet coverage
- Refrigerated items coverage
- Fire department charge coverage
- Lock replacement
- Private staff personal property coverage
What customers have to say about AIG
According to the NAIC, AIG home insurance received a trend of 0.11 on the National Complaint Index. With the average trend being set at 1.00 by default, AIG received less than the average number of complaints in the industry in 2022.
While it’s important to have a below-average number of complaints, most of AIG’s total grievances were due to their home insurance.
Customers online are pretty split between giving praise and giving criticism. About half are impressed with competitive rates and courteous agents, and the latter is more concerned with AIG’s refusal to issue payments.
It’s worth noting that AIG is not backed by the BBB, and in fact, has an “A-” rating from the Bureau. This rating is due to their speed in solving an incredible 130 complaints in the last 3 years.
AIG’s claims process
AIG has a site built for claims handling. From here, you can file and check on a claims process from start to finish. Judging by online reviews, most of the complaints from AIG’s customers come from the way they handle claims.
Although there are plenty of reviews stating that they had excellent experiences with their claims, many also complained about delayed payouts, poor adjuster handling, and denied claims. One customer recalls how AIG took 6 months to finally relinquish payment for a claim. Even then, the payout turned out to be thousands less than their dwelling limits.
AIG’s financial stability ratings
AIG and its subsidiary companies either have “A” ratings with positive outcomes or are not rated at all by AM Best. Weiss Ratings has a slightly less favorable view of AIG. They provided AIG with a Financial Stability Rating of “C+”. This means they think AIG is a part of the upper third of companies that displays fair financial security and is currently stable.
During an economic downturn or other financial pressures, Weiss Ratings feels AIG could encounter difficulties maintaining its stability.
That said, we’ve noticed AIG subsidiary companies have been in the headlines lately. Over the last few years, a few different ancillary businesses have resigned from the insurance markets of certain states. These pull-backs were likely due to their billion-dollar loss after substantial hurricanes and COVID-19.
Companies that utilize the expertise of agents and producers should be mindful of the personalities they hire. AIG is a great example of this necessity for insurers who seek better customer satisfaction. Many of these homeowners have widely varying reviews based mainly on the professionalism of their personalized agents and adjusters.
AIG and its ancillary businesses have decent financial standings overall but obviously have hit a few snags over the last couple of years. This may explain their gradual increase in claims delays and unsatisfactory payouts.
If you’re looking to insure a high-dollar home with the best level of protection, AIG may be the company you’ve been searching for. You’re not going to find basic coverage or basic prices with AIG home insurance. Suffice it to say, if you don’t have the property to facilitate robust coverage, you should look elsewhere for home coverage.