Homeowners can get full coverage at reasonable rates with American Family Home Insurance. If it fits your needs and budget, it might be a wise choice for coverage, but others might find cheaper home insurance from other companies.
Business Yield will look at evaluations of American Family Home Insurance in this guide, as well as information about the company’s standing, accessibility, prices, and offerings.
American Family Home Insurance Review
For homeowners seeking reasonable premiums, top-notch customer support, and a number of extra benefits and coverages, American Family is the best option. One such benefit is the decreasing deductible feature, which deducts $100 from your policy deductible for each year you do not file a claim.
American Family is the seventh largest home insurer in the US, despite only writing home insurance in 19 states, which suggests that, in the places where it is offered, it is a very well-liked choice.
Pros
- Reasonably priced with eleven discounts available
- The typical rates for home insurance are not expensive.
- Low volume of house insurance complaints.
- They provide expanded and guaranteed replacement cost options for homes in situations where the cost of rebuilding exceeds the insurance limit for your home.
Cons
- It is available only in 19 states
- It probably won’t cover some canines, such as wolf hybrids, trained guard dogs, or dogs who have previously injured someone.
- It provides online quotations, but completing the transaction involves speaking with an agent.
Basic coverages offered
These are the six fundamental coverages that American Family home insurance policies offer to safeguard your house, possessions, and liability:
#1. Dwelling:
This covers the cost of rebuilding or repairing the walls, floors, roof, built-in appliances, and any other structures that are part of your house.
#2. Other structures:
This covers the cost of constructing or maintaining extra buildings on your land that aren’t connected to your house, such as a garden shed or detached garage.
#3. Personal property:
This protects against financial losses for items you own, including clothing, electronics, furniture, and other personal belongings.
#4. Loss of use:
This aids in paying for temporary living expenditures such as hotel stays, dining out, pet boarding, and other costs incurred while your home is being rebuilt or fixed following a covered loss.
#5. Personal liability:
This protects against financial liability for accidental injuries or property damage; it also pays for medical and legal costs.
#6. Medical payments:
covers the cost of medical care for visitors who are hurt in your house, regardless of who is at fault.
Additional coverage offered by American Family
You also have the option to add a slew of additional coverages to your American Family homeowners insurance policy, but keep in mind you’ll pay for the added protection:
#1. Personal property replacement cost:
covers the price of replacing or repairing your personal property without taking depreciation out of the amount you are reimbursed for your claim.
#2. Equipment breakdown:
Complementary to a home warranty, this coverage pays for replacement or repairs in the event that a mechanical, electrical, or pressure system failure damages an appliance, home system, or smart home device.
#3. Water backup:
This covers the cost of repairs in the event that a sewage line or drain backup causes water to back up and overflow into your home.
#4. Service line:
This covers the cost of excavation, repairs, and replacements for any underground service lines—such as gas, electrical, or water pipes—that are damaged.
#5. Diminishing deductible:
This deducts $100 from your policy deductible for each year you do not submit a claim.
#6. Home Business:
This raises the coverage limits for items that are owned by your business but are kept in your home, like inventory, office furniture, and laptops.
#7. Inland flood:
This covers the expense of damages brought on by inland flood occurrences, including mudflow, snowmelt, and stream or river overflow.
#8. Scheduled personal property:
This raises the coverage limits for pricey valuables like jewelry, watches, electronics, and antiques that are frequently subject to per-item limits on conventional insurance.
This covers the expenses associated with slow, covert water damage, which are frequently excluded from home insurance policies.
#10. Matching siding:
In the event that a covered peril damages the siding on your home and new siding is installed, this will pay for the additional expense of replacing the siding that is in good condition so that everything matches.
#11. Temporary rental:
If you use an Airbnb or other short-term rental service to rent out your home and a guest damages or takes it, American Family’s HostAdvantage will pay for the necessary repairs or replacements.
#12. Home daycare:
This expands the liability coverage of your policy to include small home daycares with six kids or fewer.
#13. Senior living:
This extends the liability and personal property coverage of your policy to family members residing in assisted living or nursing homes.
#14. Home renovation:
This might be added to your policy for house insurance to help cover the special risks that come with remodeling projects.
#15. Identity protection and credit monitoring:
This will pay for any legal fees, missed wages, and other expenses you have during the recovery process if your identity is stolen.
#16. Personal injury:
This includes coverage for costs associated with malicious prosecution, libel and slander, false arrest, wrongful eviction, and other legal issues.
#17. Manufactured home insurance:
You must obtain specific manufactured house insurance coverage if you reside in a mobile or modular home.
#18. Vacant home insurance:
For vacant or unoccupied homes, which are typically not covered by a conventional home insurance policy, American Family offers tailored policies.
#19. Vacation home insurance:
This is a specialized defense for vacation or second homes.
#20. Umbrella insurance:
Your liability coverage limit will be exceeded by a liability claim, in which case your umbrella insurance will kick in to pay the remaining amount. You should think about getting a personal umbrella policy if the entire value of your assets exceeds $500,000, which is the maximum liability coverage limit on most home insurance policies.
#21. Flood insurance:
Through the National Flood Insurance Program (NFIP), the primary source of flood insurance in the United States, the American Family provides individual flood insurance.
American Family Home Insurance Claims
You have the option to start the claims process in your agent’s office, as American Family Insurance collaborates with local agents who specialize in insurance products specific to your area. In order to initiate a claim over the phone, you can also use the American Family Insurance app or give them a call at 1-800-MYAMFAM (1-800-692-6326) to speak with a claims specialist.
Additionally, American Family provides its clients with an online interface via which they may submit and monitor claims.
Prior to submitting a home insurance claim, you must compile the following data and records:
- Date and time of the event
- Description of the event
- Pictures showing the property’s damages
- Insurance and, if applicable, the contact details of any other parties involved
American Family Home Insurance Cost
| Company | The average home insurance cost for dwelling coverage of $350,000 |
| Progressive | $746 |
| Westfield | $1,164 |
| USAA | $1,243 |
| American Family | $1,251 |
| Nationwide | $1,309 |
| Allstate | $1,313 |
| Erie | $1,378 |
| State Farm | $1,475 |
| Auto-Owners | $1,645 |
| Chubb | $1,717 |
| Farmers | $1,877 |
| Country Financial | $2,283 |
| Shelter | $2,337 |
| Travelers | $2,404 |
| Average | $1,582 |
| Source: Quadrant Information Services | |
State Farm vs American Family Home Insurance
State Farm is better for Customer Service
In terms of customer service, State Farm obtained greater percentages of total satisfaction from the clients. Just 50% of American Family consumers say they’re totally pleased, compared to roughly 64% of State Farm customers who express high satisfaction with how easy it is to contact customer support.
State Farm is Better for Claims Handling
Customers of State Farm, as opposed to American Family, were also more likely to express high satisfaction with the simplicity of submitting a claim and receiving status updates. For instance, 59% of American Family’s studied customers say they’re entirely satisfied with how easy it is to contact customer support, compared to 71% of State Farm’s customers who submitted a claim.
State Farm Is Better for Customer Loyalty
Regarding client loyalty, recommendation likelihood, and renewal likelihood, the American Family was narrowly defeated by State Farm.Â
Among the highest percentages in the survey, 61% of State Farm drivers indicated they were extremely inclined to renew their auto insurance following a claim.
Which is cheaper: American Family or State Farm?
State Farm Is Cheaper for Teen Drivers
| COMPANY | 17-YEAR-OLD FEMALES | 17-YEAR-OLD MALES |
| American Family | $4,043 | $4,486 |
| State Farm | $2,986 | $3,661 |
| National Average | $4,515 | $5,140 |
State Farm Is Cheaper for Young Adults
| COMPANY | 25-YEAR-OLD FEMALES | 25-YEAR-OLD MALES |
| American Family | $1,658 | $1,759 |
| State Farm | $1,262 | $1,396 |
| National Average | $1,487 | $1,554 |
State Farm Is Cheaper for Adults
| COMPANY | 35-YEAR-OLD FEMALES | 35-YEAR-OLD MALES |
| American Family | $1,353 | $1,392 |
| State Farm | $1,139 | $1,139 |
| National Average | $1,274 | $1,278 |
State Farm Is Cheaper for Seniors
| COMPANY | 60-YEAR-OLD FEMALES | 60-YEAR-OLD MALES |
| American Family | $1,272 | $1,273 |
| State Farm | $1,038 | $1,038 |
| National Average | $1,149 | $1,183 |
American Family Is Cheaper for Drivers With Poor Credit
| COMPANY | AVERAGE ANNUAL RATE |
| American Family | $2,348 |
| State Farm | $2,803 |
| National Average | $2,227 |
State Farm Is Cheaper for Good Drivers
| COMPANY | AVERAGE ANNUAL RATE |
| American Family | $1,451 |
| State Farm | $1,169 |
| National Average | $1,321 |
State Farm Is Cheaper for Drivers With a Speeding Ticket
| COMPANY | AVERAGE ANNUAL RATE |
| American Family | $1,628 |
| State Farm | $1,299 |
| National Average | $1,604 |
State Farm Is Cheaper After an Accident
| COMPANY | AVERAGE ANNUAL RATE |
| American Family | $1,657 |
| State Farm | $1,405 |
| National Average | $1,872 |
State Farm Is Cheaper After a DUI
| COMPANY | AVERAGE ANNUAL RATE |
| American Family | $1,715 |
| State Farm | $1,568 |
| National Average | $2,112 |
State Farm Is Cheaper for High Coverage
| COMPANY | AVERAGE ANNUAL RATE |
| American Family | $1,462 |
| State Farm | $1,256 |
| National Average | $1,397 |
State Farm Is Cheaper for Minimum Coverage
| COMPANY | AVERAGE ANNUAL RATE |
| American Family | $1,402 |
| State Farm | $1,086 |
| National Average | $1,248 |
Is American Family Insurance good home insurance?
American Family has a favorable rating from third parties like the BBB and AM Best. In the J.D. Power House insurance study, which is based on a poll of policyholders’ overall satisfaction, the company received a score of 831/1,000, which is above average.
Is the American Family good at paying claims?
American Family pays car insurance claims with efficiency. The business holds an A rating from AM Best, indicating that it has sufficient funds to cover claims.
Who owns the American Family Home Insurance Company?
American Family Mutual Insurance Company (“American Family Mutual”) controls all of AmFam, Inc., a downstream holding company.
Why is American family insurance so expensive?
The high cost of American Family insurance can be attributed to the generally high cost of auto insurance, which is driven up by insurers’ overhead. However, the average American family’s annual vehicle insurance rate, at $665, is really rather similar to the $671 national average.
How does American Family Insurance compare with other insurance firms?
In general, American Family Insurance costs less than insurance from companies like Progressive, Allstate, and Travelers. Additionally, the national average of AmFam is almost 8% less expensive than the national average of $2,008 at $1,851. But AmFam is more costly when compared to the average rates offered by USAA, Geico, and State Farm.
Is American Family Insurance part of Costco?
Costco offers auto and home insurance through American Family Insurance.
Who is the largest home insurance company in the US?
With plans available in all 50 states, State Farm is the biggest home insurance provider in the nation. State Farm performs “better than most” in terms of total customer satisfaction, per J.D. Power’s survey on the subject.
Is American Family Insurance a big company?
The National Association of Insurance Commissioners (NAIC) ranks American Family Insurance as the ninth-largest auto insurance provider in the United States. American Family now provides coverage in 19 states.
HOME WARRANTY VS HOME INSURANCE: Key Comparison 2023
Root Insurance Review 2023: All You Should Know
Appliance Insurance Choice Home Warranty: 2023 Review
References:
