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American Family Insurance offers a range of popular insurance products using the "agent" model, meaning you work with a dedicated local agent to find the right coverage for your needs. It offers plans to fit consumer needs, earning high rankings in JD Power's home insurance study.

American Family Homeowners Insurance

American Family Insurance dates back to 1927 when it launched as Farmers Mutual Automobile Insurance Company in Madison, Wisconsin. The name was one of many changes throughout the years. AmFam, as it's often called, offers insurance for cars, boats, motorcycles, recreational vehicles, homes, pets, and more. It aims to provide a full suite of personal insurance products to keep customers in the "family."

American Family Insurance has a strong customer service reputation with insurance agents to help with quotes, claims, and more. While AmFam offers digital services, it's unlikely to compete in that metric with companies like Hippo and Lemonade. Of course, many consumers are looking for more of the service AmFam offers, even if it means fewer online and mobile tools.

Here's a complete breakdown of all the coverages American Family Insurance offers in its homeowners insurance policies, how to file a claim, and other essential details you'll want to know.

American Family Homeowners Insurance Cost

American Family Homeowners - Product Name Only quotes individual home policies based on several factors. For example, your homeowners insurance quote will vary based on the following:

  • Age of your home
  • Size of your home
  • Location of your home
  • Other structures on your property
  • Roof type
  • The preferred coverage limit for personal belongings
  • Distance to your nearest fire station or fire hydrant
  • Claims history
  • Riders you add to your policy

Your annual deductible will also play a role in your premiums. So talk to your insurance agent for a balanced policy to meet your needs. Fortunately, American Family Insurance also offers free quotes to estimate and compare costs on its website.

How to File A Claim With American Family Homeowners Insurance

Since American Family Insurance works with local agents specializing in insurance products for your area, you can always start the claims process in your agent's office, online, or over the phone by calling 1-800-MYAMFAM (1-800-692-6326). In addition, many AmFam policyholders use its online portal to file and track their claims.

Before you file a home insurance claim, you'll need to gather the following information and documentation:

  • Date and time of the event
  • Description of what happened
  • Photos of damage done to the property
  • Insurance and contact information of any others involved (if applicable)

American Family Homeowners Insurance Plans 

American Family Homeowners - Product Name Only offers numerous home insurance options for different dwelling types, including single-family homes, farms and ranches, condominiums, multi-unit properties, and more. The company also provides coverage options for property owners who want to insure the structure and built-in appliances but not personal property. Property owners renting rooms to others may also consider higher liability limits.

Its standard home insurance policies include the following:

  • Coverage A Dwelling: This type of homeowners insurance protects the structure of the home itself from financial losses caused by perils like fire, hail, lightning, theft, vandalism, and windstorms. Policyholders can choose between actual cash value and replacement cost. Where actual cash value pays you what your property is worth right before the covered event (with depreciation and any damages, replacement cost coverage replaces your property based on the cost to rebuild your home, even though new materials will technically be in better condition.
  • Coverage B Other Structures: This type of coverage protects other structures on your property, including sheds, fences, garages, and more. Like dwelling protection, homeowners insurance for other structures protects the property, not your personal belongings.
  • Coverage C Personal Property: This homeowners insurance protection covers your belongings. Items included in this coverage can be (but are not limited to) furniture, household items, electronics, clothing, and more. If you have high-value items (such as jewelry, fine art, or electronics), you may need a rider to cover those items.
  • Coverage D Loss of Use: Imagine your property is ravaged by fire, and your home has become uninhabitable. That's where the loss of use coverage comes into play. This financial protection can pay for a hotel or rental, takeout food (as you may lack a kitchen), and more while you wait for your property to be refurbished or rebuilt.
  • Coverage E Liability Protection: Liability protection can shield you financially in various situations, including if someone becomes injured on your property or is bitten by your dog or cat.

Additional Coverage Options (Riders)

American Family Insurance lets people customize policies to suit their unique needs. The following riders may be available on your homeowners policy, but you should work with an American Family Insurance agent to verify which riders are available.

  • Credit Theft Protection & Monitoring: AmFam's partnership with CyberScout allows policyholders to add credit theft protection and monitoring services. Users can spot the signs of identity theft early and take action to prevent more damage.
  • Diminishing Deductible: This rider lets you qualify for a lower deductible on your policy for each year you remain claims-free.
  • Equipment Breakdown: This rider helps pay for repairs and replacement when major home components like appliances are ruined due to mechanical, electrical, or pressure systems breakdown.
  • Hidden Water Damage Coverage: This extra coverage provides financial protection against damage caused by leaks in areas blocked by large appliances or otherwise areas you wouldn't usually check.
  • Matching Siding Protection: This protection ensures the replacement siding on your home matches your old siding in the event of a covered peril. In extreme circumstances, it will pay to replace all your siding is replaced to ensure it matches.
  • Sump Pump and Water Backup Coverage: This rider provides added protection for your dwelling and belongings in case of water damage related to a burst pipe or other similar issues.

FAQs

Is American Family Insurance good at paying claims?

American Family Insurance earned a score of 842 out of 1,000 in the latest JD Power Home Insurance Study - Product Name Only. The segment average was 819, meaning American Family Insurance outperforms many of its top competitors. If you file a claim, the company will likely pay it based on your policy's terms.

Does American Family Insurance offer renters insurance?

American Family Insurance offers renter's insurance, which can also be bundled with auto insurance.

What do customers say about American Family Insurance?

While American Family Insurance gets positive ratings for its customer satisfaction, many past users complain about insurance rates seeming to inch up each year even when they don't file claims. Some customers also say filing a claim was frustrating overall, and they had trouble getting American Family Insurance to return their calls. Much of the American Family Insurance experience depends on the agent you work with.

Compare American Family Homeowners Insurance

See how American Family compares to three other options for home insurance coverage: Lemonade, Allstate, and Hippo.

American Family vs. Lemonade Homeowners Insurance

Lemonade Homeowners Insurance - Product Name Only is an online insurance provider offering affordable coverage with minimal hassle and stress. The company lets you apply for an insurance quote online or through its mobile app, but you can also call in to speak with an agent over the phone. It is built for tech-savvy customers with a newer smartphone, whereas American Family Insurance offers online quoting. But it also works with licensed insurance agents to provide more options.

In addition to home insurance, Lemonade also offers car insurance, renter's insurance, pet insurance, and life insurance coverage. Again, American Family Insurance offers a similar selection of insurance products. The company is only licensed in a limited number of states, but its site states it is working on getting licensed in all 50 states.

Lemonade's site lists homeowners premiums starting at $25 per month, which matches the average condo insurance rates in many states. However, for a single-family home, some townhomes, etc., Lemonade's rates are similar to large competitors, with licensed insurance agents quoting policies. So while the initial statement may be misleading, homeowners will quickly find out it likely offers the same rates as American Family Insurance.

Lemonade Homeowners Insurance Review

American Family vs. Allstate Homeowners Insurance

Allstate Homeowners Insurance - Product Name Only is another insurance provider worth considering if you want a local agent to help you with quotes, claims, and policy management. Its coverage is robust, with all the significant coverages and protections one would expect. In addition, you can tailor your plan based on the types of protection you want, policy limits, deductibles, and riders.

While Allstate also offers a mobile app to file and track claims, you can manage the entire process through its online portal or with the help of your assigned insurance agent. In addition to home insurance, Allstate also offers renter's insurance, landlord insurance, auto insurance, life insurance, business insurance, life insurance, and some investment products.

Allstate's premiums are higher than the national average. However, it offers many discounts, which an Allstate agent should be able to review for you to ensure you're getting the most competitive rates. American Family Insurance doesn't offer as many discounts but has competitive premiums. More importantly, it ranks high on JD Power's most recent home insurance study.

Regardless of which company you choose, we recommend comparing similar policies to see which company offers more affordable rates (as opposed to lower prices for less coverage).

Allstate Homeowners Insurance Review

American Family Insurance vs. Hippo Homeowners Insurance

Hippo Homeowners Insurance - Product Name Only is another insurance company selling and managing insurance policies online. Hippo combines homeowners insurance with smart home technology products to make your home safer. For example, it provides leak sensors, outside cameras, motion detectors, and smart smoke alarms. Hippo aims to prevent claims by automating safety. Lemonade does not offer comparable programs.

According to the website, you can get a quote for Hippo home insurance in as little as 60 seconds. Hippo also claims to insure more than 200,000 homes across the United States. American Family offers a personalized approach in comparison, but Hippo is appealing to many younger homeowners. Premiums may be comparable, meaning the lowest price may vary between policyholders.

Many newer companies like Hippo have not made it onto JD Power's home insurance study, which ranks consumer satisfaction. American Family came in second to Amica Mutual by providing excellent consumer experiences. However, as a relative newcomer to the industry, Hippo's long-term customer satisfaction remains to be seen.

Hippo Homeowners Insurance Review

Why You Should Trust Us: How We Reviewed American Family Homeowners Insurance

To write this American Family Insurance review, we reviewed the available coverage options from dozens of insurance companies across the United States. We compared factors like customer service ratings, included coverages, available riders, and how mobile-friendly the company is. You can read more about our homeowners insurance rating methodology to see how we measure different metrics.

We compared American Family Insurance to other insurance providers like Amica, GEICO, Progressive, USAA, and online insurance providers like Lemonade and Hippo Insurance.

Read the original article on Business Insider