American Risk Insurance Company is a privately held, regional home insurance provider that is based out of Houston, Texas. It is a pretty small company with less than 100 employees in total. They offer homeowners insurance along with a few other related insurances. Their reviews are mostly negative, which we will discuss further. They are not a very big company in terms of reach or premium, which can be both good and bad.
American Risk Insurance offers coverage in only three states. These states include Oklahoma, Texas, and Louisiana. Residents of these three states will be interested in learning more about this company while this review is not relevant to residents of the other 47 states and D.C.
American Risk homeowners insurance coverages
American Risk offers standard homeowners insurance along with landlord, renters, condo, high-value home, and commercial property insurance.
The standard policy sections include:
- Dwelling: coverage for damage that occurs to the structure of the home or any attached structures
- Other structures: protection from damage to any structures on the property not attached to the home
- Personal property: coverage to repair or replace personal belongings such as furniture or electronics
- Loss of use: protection for additional living expenses incurred while the home is being repaired or rebuilt to make habitable again
- Personal liability: protection for any lawsuits that might arise from injuries or damages to others where the homeowner is found to be at fault
- Medical payments to others: protection for any injuries that may occur to a guest on the property no matter who is found to be at fault
We couldn’t find specifics for additional coverages that the company offers, but their website does show a few different variations on a standard home insurance policy, some with more coverage offered than others. You can check out their website for more details.
We couldn’t determine specific coverage limits, but it would be safe to assume that American Risk’s standard home insurance policies have a maximum limit of $450,000 as their high-value insurance policy begins at $450,000 and is capped at $1 million. The coverage for the other sections of coverage other than the dwelling coverage limit will be percentages of the dwelling coverage limit. The coverage limit of their standard policy has not been confirmed. Talk with an American Risk agent to get accurate details.
Other policies offered by American Risk
American Risk Insurance Company offers landlord (dwelling fire), renters, condo, and high-value homeowners’ insurance to customers.
- Landlord (dwelling fire) insurance: This policy covers owners of rental properties for damage that occurs to the property. American Risk offers two variations of their dwelling fire coverage. It is important to note that this coverage typically covers the dwelling only and only covers the owner of the property. It does not cover the tenant(s) that occupy the property.
- Renters insurance: This coverage is designed to protect the tenant of a rental property for damage that may occur to their personal belongings.
- Condo insurance: This insurance policy works in much the same way as a standard home insurance policy but with language and coverage designed specifically for condos and their unique situation of those.
- High-value home insurance: American Risk has a unique program to protect homes that are considered high-value. They consider high value in the range of $450,000 to $1 million. The coverage is much the same as a standard home insurance policy but has increased coverage limits. They also offer additional coverage for valuable personal belongings such as jewelry.
- Flood coverage: Flood coverage is offered through American Risk backed by the National Flood Insurance program.
American Risk homeowners insurance discounts
American Risk offers a number of discounts to policyholders including:
- Newer home: A discount is available to homeowners that own newly built homes
- Financially responsible: This discount is available to homeowners with exceptional credit scores.
- Hail-resistant roof: This discount is available to owners of homes that have a roof specifically designed to protect against hail damage
- Qualified siding: This discount is available to owners of homes that have storm resistant siding
- Gated community: this discount is for homeowners who live in a gated community that keeps the home safer
- New purchase: This discount is available to homeowners who have recently purchased their first home
- Preventative devices: Homeowners can obtain a discount by installing security systems to deter threats.
- Senior citizens & retirees: homeowners who are over the age of 55 are eligible for a discount
Cost of American Risk home insurance
We were unable to determine the average cost of a home insurance policy with American Risk. It is a safe assumption that American Risk’s standard home insurance policies are a higher premium cost to homeowners than the national average for all home insurers due to the regional nature of the company. Regional insurance carriers, especially companies like American Risk that only serve three states, will typically have a higher premium cost compared to a nationwide carrier.
American Risk also serves three states that are notorious for having some more extreme weather events. A higher risk of extreme weather usually commands a higher premium. Of course, this has not been confirmed. Talk to an American Risk agent to get an accurate quote.
American Risk offers 24/7 claim service to their policyholders. Based on customer reviews it seems that the claims service is subpar. Many customers said that a company agent did not answer the phone when called and when they did answer, were rude to the customer. While there are many negative claims reviews there are also some positive reviews. Overall, the claims reviews are pre-dominantly negative.
Overall, customer experience with American Risk is mixed. There are some positive reviews and some negative reviews. The National Association of Insurance Commissioners complaint index shows American Risk below the expected number of complaints for a company of their size. This is positive as many insurance companies are above the complaint index expectation. This shows that American Risk is taking care of its customers.
American Risk does not have any ratings from the major credit ratings agencies, AM Best, Standard & Poor’s, and Moody’s. They do have an A rating from Demotech, which is a credit ratings agency that specializes in rating regional insurance providers such as American Risk. The A rating denotes that American Risk has great financial strength. They are financially strong and able to easily weather any stress-inducing situations due to a lot of claims being filed. This is a positive sign for potential policyholders.
American Risk Insurance Company may be a good option for residents of Oklahoma, Texas, and Louisiana. The company is a small regional insurance company with only roughly 50 employees in total. This can be good and bad. Customers may get more personalized service, but they may also not have access to resources available to customers of a nationwide insurance provider.
Their claims process seems to be the biggest negative of the company with many customers saying that the company was unhelpful and unresponsive in many cases. The overall customer experience seems to be in the middle somewhere with some good experiences and some bad.
While not confirmed, the company’s premiums are most likely higher than the average for the same coverage as one could purchase at a national carrier. Their website is clear and succinct, showing what coverages they offer and the features of each. This is very positive to see as some insurers don’t have clear websites.
It is positive to see that they have an A rating from Demotech. This shows that their financial strength is strong, which is always a good sign for policyholders. It makes it less likely that they will have issues with their policy or be awarded a claim in the event of damage to a home.
One issue that may arise is that American Risk only insures homes in three states of which all three states are at higher risk for extreme weather conditions such as hail and tornadoes. In the event that there is a major storm, the claims process may be even more frustrating for some policyholders. It may harm the financial strength of the company as well.
Overall, American Risk is nothing special in terms of home insurance companies. They have average coverage with good deductions available, and average to below-average customer service. Homeowners in Oklahoma, Texas, and Louisiana may find it worthwhile to look at coverage with American Risk but would be encouraged to compare American Risk’s policy to policies with other companies that serve the homeowner’s area.