- Annual premiums may be cheaper.
- Customers are happy.
- There is tons of coverage to choose from.
- Hidden Water Damage endorsement is available.
- There is no online quote tool.
- All 50 states aren’t covered.
In 1927, American Family Insurance was established in Madison, Wisconsin, with a primary focus on offering insurance policies to farmers. Presently, this insurance company has grown to become a major player in the industry, competing alongside the likes of State Farm and Allstate.
AmFam is a privately-owned mutual company that offers a range of insurance services for automobiles, properties, individuals, and businesses. With 4.35% of the market share, AmFam comes in as the number 7 top property and casualty company in the country. That means AmFam ranks higher in terms of direct written premiums than Nationwide or Progressive.
Today, AmFam provides quality insurance to 19 states across the country, including:
- Arizona
- Colorado
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Minnesota
- Missouri
- Nebraska
- Nevada
- North Dakota
- Ohio
- Oregon
- South Dakota
- Utah
- Washington
- Wisconsin
American Family dreams of providing convenient and easy services matched with product integrity and quality customer care.
American Family homeowners insurance coverages
AmFam proudly works with independent agents that help deliver their products and services. As a result, they insist that their customers find a local agent through their site to get a personalized look at coverage and premium options.
Still, the company provides a framework for its coverages and endorsements on its site. With this information, we can begin to look at what a home insurance policy will look like with AmFam. A standard AmFam policy is outlined below.
- First, if any dangers like fire, windstorms, hail, lightning, theft, or vandalism occur and cause damage to the structure of your house, you’ll be protected from financial drawbacks. With dwelling coverage in your home insurance policy, all the repair costs will be covered.
- Your property’s other structures, like detached garages, gazebos, sheds, swimming pools, and fences, are also protected. If your shed is damaged by a fallen tree during a windstorm, the cost of repairs can be supported by other structures coverage.
- Just the structure itself is covered and not the items inside, however. Personal property coverage takes care of that. If a disaster strikes, personal property coverage ensures the safeguarding of items in your home. Whether it be the contents of your home or the equipment stored in your shed, this coverage can defend against the destruction caused by covered events.
- If a covered incident renders your property unlivable, additional living expenses (loss of use) coverage provides financial reimbursement for costs that you incur while under alternative accommodation. The covered expenses can include the costs for lodging, pet kenneling, food, and others.
- If an accidental injury occurs on your property, you can find safety in knowing that personal liability coverage will protect you from liability claims and lawsuits. Personal liability coverage under your homeowner’s policy provides sufficient financial support to cover the medical expenses of guests and others on your property.
Endorsements and optional coverages
Like most reputable home insurers, AmFam has a list of endorsements ready to serve their homeowners with even more comprehensive coverage. Some of these add-ons are standard, and some are unique. The company encourages its customers to reach out to their agents to uncover more policy endorsements. Nevertheless, here are just a few of their policy additions:
- Matching Siding Protection: If your property suffers from a covered loss, your homeowner’s policy steps in to replace the affected sections of your siding. Additionally, if you have undamaged siding coverage, you can receive compensation for replacing the remaining undamaged siding so that everything appears uniform.
- Equipment Breakdown: If your mechanical, electrical, or pressure systems fail and cause damage to your appliances, home systems, or smart home devices, you can rest assured that this coverage will provide you with the necessary financial compensation.
- Sump Pump and Water Backup Coverage: You can opt for the added protection of insuring against water backup and sump pump failure, which can prove to be extremely beneficial. This coverage will help reimburse you for damages caused by water that backs up into your house from faulty sewage lines or sump pumps.
- Credit Theft Protection & Monitoring: AmFam has credit monitoring services in partnership with CyberScout. Together, these providers ensure that you stay informed about any new credit account created under your name, updates or changes made to existing accounts, and when financial institutions and credit card issuers submit a hard inquiry on your credit.
- Diminishing Deductible: When you enroll in this coverage, you immediately receive a $100 credit toward your deductible. Plus, remaining claims-free every year thereafter will reward you with another $100 until your policy’s limit is reached.
- Hidden Water Damage Coverage: Unforeseen leaks within the plumbing or household appliances can cause water damage that goes unnoticed. Oftentimes, insurance policies will consider a loss associated with this as negligence, and won’t cover the damages. But with this coverage, damages resulting from wear and tear, deterioration, corrosion, and rust caused by such leaks will be fully covered.
American Family homeowners insurance premiums & potential discounts
Without a legitimate online quote tool, the average customer comparing prices online would have trouble getting to the bottom of the cost of AmFam home insurance. Instead, we relied on the average cost of home insurance for the serviced areas and a little word of mount from their customers.
AmFam homeowners in Utah have the greatest potential for cheaper home insurance rates. The average annual premium for $350,000 dwelling coverage here would be around $643. For the same price, homeowners in Wisconsin could receive up to $200,000 in dwelling coverage.
According to Forbes, this insurer comes in above Nationwide, Allstate, and State Farm regarding average home insurance costs of $350,000 in dwelling coverage. So, if you’re thinking about AmFam’s home insurance, you could find yourself saving hundreds of dollars a year.
Customers seem to agree that AmFam’s premiums are affordable. Reviews online report how AmFam provides some customers with the best rates in their area. This may especially be the case if you qualify for any of AmFam’s home discounts. AmFam has just a few ways to save on your annual premium, including:
- Bundle & Save: When you combine your auto and home policies with AmFam, you can save up to 23% Plus, combining other policies may provide you with even more savings.
- Age of home discount: If your home is less than 15 years old, you may qualify for a discount on your home insurance. We’re used to seeing 10 years or less on an age discount, so this incentive could spread to more customers.
- Renovated home discount: If you updated your electrical, heating, or plumbing systems in the last 15 years, you might be eligible for this discount.
- Insurance payment discount: When you choose a preferred payment method, AmFam will provide you with billing discounts.
- Loyalty discount: After you’ve been with AmFam for a year or more, you could see a shrinking annual premium.
- Generational discount: If you’re between the ages of 18 and 30 with parents that have a policy with AmFam, you might be eligible for a generational discount.
Customer satisfaction reviews
The NAIC hardly registered enough AmFam home insurance complaints to make a dent in the National Complaint Index in 2022. The average level on this scale sits at 1.00, and AmFam only received 0.13 on this index. This reflects a steady decrease in complaints over the last 3 years.
This insurer isn’t accredited by the BBB, but they do boast an A rating for customer complaint mitigation. They’ve gathered and solved 158 complaints over the last 3 years, most of which cite unfair treatment of claims.
Elsewhere on the internet, bad reviews are few and far between. Many of their insured homeowners are proud of this company’s excellent customer service.
How are claims processed?
When you need to file a claim with AmFam, they encourage you to log into your mobile app, where you can file and track your claim. Of course, you can call them at 1-800-MYAMFAM (1-800-692-6326) to speak directly with the claims team, or you can call your agent directly.
Claims delays seem to be the biggest gripe among AmFam homeowners. On the other hand, more of them are concerned about their car insurance. Plus, many customers have taken to internet forums specifically to revel in how courteous and thorough their team of professionals was.
Financial stability ratings
There are stable implications for AmFam’s financial stability, according to AM Best. This rating company found AmFam’s financial strength meets the criteria of an “A” for excellent. Their long-term issuer credit stands firm at a+ but with a negative outlook.
Nearly the same implication was expressed with Weiss Ratings, which gave the insurer a solid “B” for insurance safety. They believe AmFam provides good financial security with the resources to deal with financial difficulties.
Final verdict
At the end of the day, American Family Insurance is a solid company to protect your home from sudden catastrophe. They have plenty of coverage to take care of your home and everything inside, plus you, your guests, and so much more, all for a low annual premium.
Customers are pretty happy with the way things turn out when they communicate with AmFam. As always, it counts to really get a good feel for your agent. You should be comfortable knowing they’ll take care of your needs.
Total Rating: ⭐⭐⭐⭐
Home insurance plays a crucial role in protecting your assets in the event of emergencies. Your home and the property within are probably one of the most important items to you and your family. In this review, we will go over American Family home insurance, a popular albeit smaller insurance company in the United States.
American Family overview
American Family or AmFam is a private mutual company that provides auto, property, and casualty insurance. They also provide a number of other products such as life, health, home, and commercial insurance, investments, and retirement planning. The company is part of the Fortune 500 and in 2017, reported a revenue of $9.5 billion with a total asset of $20 billion.
The company relies on an insurance agent’s quote process where you can get your quotes or buy your policies. While this may feel less advanced compared to its competitors, American Family has consistently scored well when it comes to customer service. The company is the 10th largest auto insurance provider in the United States, however, their home insurance remains to cater to a small number of customers.
The company website allows you to request a quote. However, the quote tool offers little information as it acts more of an information collector than an actual tool. The information you enter will then lead to an insurance agent who will provide you with the quote.
Home insurance coverage
Just like most insurance companies, American Family’s home insurance policies offer reliable coverage which includes coverage for the following:
- Dwelling – Provides coverage for your home in case of damage or loss of items.
- Personal Items – Provides coverage for damage or loss of personal items.
- Loss of Use – If you cannot stay in your home due to covered damage or loss, expenses associated while living away will be covered.
- Medical Cost Coverage – If someone was injured in your property, your home insurance will pay for their medical bills up to the limit of the coverage.
The home insurance policy from AmFam provides adequate protection in case of fire, theft, natural disasters, and vandalism. Additional coverage includes mold damage protection, debris removal, and protection versus identity theft. One thing that you need to consider is that American Family puts a difference between loss due to acts of God or accident and loss due to theft. So make sure to double-check your coverage well before signing up.
High-value items
One of the best features that AmFam policies provide is that it offers excellent coverage for high-value items. For example, the company does not set a limit for electronic items. So if you have expensive electronic equipment at home, this is the best choice. Moreover, AmFam also offers the highest limit for firearm owners.
Discounts
Policyholders who are on the lookout for discounts will find that AmFam has limited discounts offered for their policies compared to other companies.
- Multi-product – You can get a discount when you have multiple policies such as auto coverage.
- New Home – Depending on the age of your home, you may be eligible for a discount.
- Renovated Home – If you updated your home’s plumbing, heating, and electrical system in the last 15 years, you may be able to receive a discount.
- Home Purchase – If you have purchased a home within the past three years, you may be eligible for a discount.
- Full Payment – Pay your premium upfront all at once to receive a discount.
- Auto Payment – Set up an auto payment for your premium to receive a discount.
- Paperless Billing – Go paperless and receive a discount.
- Loyalty – Earn a discount when you stay with American Family for a long time.
- Generational – Earn a discount when your parents are also insured with American Family.
- Safe, Secure, and Smart Home – Homeowners who install smart home devices for security will qualify for a 5% discount.
Consumer & financial strength ratings
Clearly, American Family is one of the smaller home insurance companies in the country. Nevertheless, it provides competitive rates and solid protection services. The company offers plenty of discounts which you can take advantage of, including unique discounts such as enjoying savings when your parents are insured with the same company.
AmFam received excellent scores from J.D. Power, scoring second only to insurance giant State Farm. Clearsurance, a website with real customer reviews also scored AmFam at 4.15 stars out of 5. In which customers feel that they generally have a positive experience with American Family.
Another great feature that the company offers is its extensive website where you can get plenty of information. They also offer a mobile app where you can check your accounts while on the go. Finally, the company’s 24/7 customer assistance makes it easier to reach out to a customer service representative at any time of the day.
Pros and cons
Pros
- AmFam offers 24/7 customer service.
- Offers useful tools from the website and the app that allows you to manage your account quickly.
- Excellent customer reviews and ratings.
- Provides adequate coverage for everything you need in your home insurance coverage.
- Offers excellent coverage for high-value items inside your home.
Cons
- A limited number of possible add-ons for your policy.
- The company does not provide instant quotes instead you need to go through an agent.
