American Family Home Insurance Review 2023

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American Family Insurance dates back all the way to 1927, when it was first launched as Farmers Mutual Automobile Insurance Company in Madison, Wisconsin. Obviously, the company changed with the times to morph into what it is today, and it now offers insurance for cars, boats and other vehicles, homeowners insurance, renter’s insurance, life insurance, pet insurance and more.

When it comes to homeowners insurance in particular, American Family Insurance ranked second in J.D. Power’s 2022 U.S. Home Insurance Study, with only Amica Mutual scoring higher. This study focused on customer service and considered the responses of 11,630 homeowners and renters from May through July 2022. 

Note that American Family home insurance is only available in 19 states in the Midwest and Pacific Northwest, so not everyone will be eligible for coverage.

American Family Insurance offers all the coverages you would expect in a robust homeowners insurance policy, plus a ton of discounts that can help you pay less overall. Here’s a complete breakdown of all the coverages American Family Insurance offers in its homeowners policies, along with how to file a claim and other important details you’ll want to know.

See our guide to the best homeowners insurance companies »

Types of American Family Homeowners Insurance Plans

American Family Insurance offers numerous home insurance options that can apply to different types of dwellings, including single-family homes, farms and ranches, condominiums, multi-unit properties and more. The company also offers coverage options for manufactured homes, as well as policies geared specifically to landlords who need adequate insurance for buildings they own but not necessarily for personal property.

For its standard homeowners insurance policies, American Family Insurance coverage includes the following:

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. 

Note that you can choose from two different types of coverage within this part of a homeowners insurance policy — actual cash value or replacement cost. Where actual cash value coverage pays you what your property is worth today, replacement cost coverage replaces your property with new property at current values without taking depreciation into account.

Other Structures

This type of homeowners insurance coverage protects other structures on your property, which can include sheds, fences, garages and more. Like Coverage A Dwelling protection, homeowners insurance for other structures protects the property itself but not your personal belongings.

Personal Property

This homeowners insurance protection covers your actual belongings that are held within structures on your property. Items included in this coverage can be (but are not limited to) furniture, household items, electronics, clothing, and more.

This coverage kicks in when a covered peril that damages your dwelling or other structures also damages your personal belongings.

Temporary Living Expenses

Imagine your property is completely ravaged by fire and your home has become uninhabitable — that’s where coverage for temporary living expenses comes into play. 

This financial protection can pay for a hotel or rental apartment while you wait for your property to be refurbished or rebuilt from the ground up.

Liability Protection

Liability protection that comes with a homeowners insurance policy can shield you financially in a range of situations, including if someone becomes injured on our property and requires medical care. 

This coverage can pay for their medical bills, legal expenses, and other related costs.

Additional Coverage Options (Riders)

American Family also lets people customize its policies to suit their unique needs. The following riders may be available on your homeowners policy with the company, but you’ll want to work with an American Family Insurance agent to know for sure.

• Credit theft protection and monitoring: Through a partnership with a company called CyberScout, American Family lets you add on credit theft protection and monitoring services that can help spot the signs of identity theft early on. 
• Diminishing deductible: This homeowners insurance add-on 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 your appliances or home systems are ruined due the breakdown of mechanical, electrical, or pressure systems.
• Hidden water damage coverage: This extra coverage provides financial protection against damage caused by leaks that remain out of your view and undetectable.
• Matching siding protection: This protection ensures the siding on your home is matched to your old siding in the event of a covered peril, or even that all your siding is replaced so it matches completely.
• Sump pump and water backup coverage: This rider provides added protection for your dwelling and belongings when a sump pump or water backup causes damage.

How Much Does American Family Home Insurance Cost?

American Family provides individual homeowners insurance policies based on several factors that impact costs. For example, your homeowners insurance quote will vary based on:

• Age of your home
• Size of your home
• Location of your home
• Other structures you have
• Roof type
• Value of your belongings
• Materials used to build your home
• Interior elements of your home
• Riders you add to your policy

Your annual deductible will also play a role in how much your homeowners insurance policy costs, and so will the policy limits you select when you set up your coverage.

Fortunately, American Family does make it possible to get a free quote for homeowners insurance on its website. This step can help you gauge how much coverage will cost, but you’ll still want to work with an agent to ensure you have adequate financial protection and all the riders and add-ons you need based on the property you have.

We generated a sample quote for a home in Bend, Oregon, and got monthly rates from $90-$129 ($1,080-$1,548 annually). According to the Insurance Information Institute (III), the average cost of home insurance in 2020 (the latest year for which data is available) was $1,311 annually, and $735 annually in Oregon. But premiums can vary significantly depending on the location, size, and build of your home, so your best bet is to compare rates to see what insurer offers the best deal.

How to File an American Family Home Insurance Claim

Since American Family Insurance works with local agents who specialize in insurance products for your area, you can always begin the claims process in your agent’s office if you prefer. You can also begin a claim on the American Family Insurance app or call 1-800-MYAMFAM (1-800-692-6326) to speak with a claims representative and get started over the phone.

American Family also offers its customers an online portal that lets them file and track claims online.

Before you file a homeowners 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 Home Insurance Frequently Asked Questions

Methodology: How We Reviewed American Family Home Insurance

In order to write this American Family homeowners insurance review, we looked over the available coverage options from dozens of insurance companies across the United States. We also followed our insurance rating methodology to compare factors like customer service ratings, included coverages, available riders and add-ons, and the availability of a mobile app. 

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

How American Family Home Insurance Compares

American Family Home Insurance vs. Lemonade

Lemonade is an online insurance provider that focuses on offering affordable coverage with minimal hassle and stress required. 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. In addition to homeowners insurance, Lemonade offers car insurance, renter’s insurance, pet insurance, and life insurance coverage.

Lemonade says its homeowners insurance protection starts at around $25 per month, which means its rates may be lower than some competing companies. However, unlike American Family, Lemonade does not offer the benefit of having local agents in your area, so the bulk of your insurance experience will take place online, on an app, or over the phone.

Read our Lemonade home insurance review.

American Family Home Insurance vs. Allstate

Allstate is another insurance provider worth considering if you want to work with a local agent. Its homeowners insurance coverage is robust with all the major protections one would expect, and you can tailor your plan based on the types of protection you want, your policy limits, your chosen deductible, and riders and add-ons you want to pay for.

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

Read our Allstate home insurance review.

American Family Home Insurance vs. Hippo

Hippo is another insurance company that focuses on selling and facilitating products online and through a mobile app. While Hippo offers home insurance, it also combines its coverage with smart-home technology products that can help keep your property safe. For example, it offers items like leak sensors, outside cameras, motion detectors, and smart smoke alarms.

You can get a quote for Hippo home insurance in as little as 60 seconds according to its website, and Hippo claims to be insuring more than 200,000 homes across the United States at the moment. Because Hippo is an online insurance company, however, you won’t get to work with a local agent who gets to know you and your needs over time.

Read our Hippo home insurance review.