American Family Homeowners Insurance Review 2023
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Founded in Madison, Wisconsin, American Family sells homeowners insurance and other policies in 19 states. You can customize an American Family home insurance policy with a variety of add-ons, including coverage for identity theft, valuable jewelry or the breakdown of major appliances.
The company also has several discounts you might be able to use, plus rates below the national average.
American Family home insurance star rating
American Family homeowners insurance earned 4.5 out of 5 stars for overall performance. NerdWallet’s ratings are determined by our editorial team. The homeowners insurance scoring formula takes into account policy coverage options and discounts, ease of filing a claim, website transparency, the financial strength of the company, complaint data from the National Association of Insurance Commissioners and more.
Based on this rating, American Family is among NerdWallet’s best home insurance companies for 2023.
American Family homeowners insurance policies are available in 19 states.
American Family home insurance coverage
You can customize your homeowners policy with numerous add-ons, but below are the types of coverage that generally come standard:
Type of coverage
What it does
Pays to repair or rebuild the structure of your home.
Covers damage to unattached structures such as a shed or fence.
Pays to repair or replace personal belongings such as furniture or clothing.
Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs.
Covers legal expenses and damages if you're responsible for injuries to other people or their property.
Covers injuries to guests in your home, regardless of fault.
For more details, see What Does Homeowners Insurance Cover?
American Family Insurance offers the standard homeowners insurance coverage above, plus the following types of optional coverage:
Sump pump failure and water backup. Pays if your sump pump overflows or your sewer backs up.
Identity theft. Covers costs associated with restoring your finances if someone steals your identity.
Home-based businesses. Provides additional liability and personal property coverage if you run a business from your home.
Equipment breakdown. Pays to repair or replace appliances, home systems or smart-home devices that experience a sudden mechanical, electrical or pressure systems failure.
Matching siding. When an event like a storm or fire damages your siding, your home insurance will cover the costs. Matching siding protection reimburses you for up to $20,000 to replace undamaged siding so everything matches.
Service line. Pays for repairs to water, power or other underground lines that run to your house.
Senior living. Covers liability and personal belongings for older adults in nursing homes or assisted living facilities.
Vacant home. Available for three-, six- or 12-month periods, this coverage pays for damage if your house is unoccupied during renovations or while it’s on the market.
Hidden water. Covers up to $25,000 worth of damage, including mold, resulting from hidden water leaks.
Temporary rental. If you rent your home out to others temporarily (no more than 62 days a year total), this coverage pays for damage that happens during those rental periods.
Scheduled personal property. If you have individual items that are particularly valuable — such as an engagement ring or musical instrument — you can buy separate insurance that covers them for a wider range of potential problems.
American Family home insurance rates
American Family homeowners insurance costs $1,748 per year, on average, according to NerdWallet’s rate analysis. That’s slightly less than the national average of $1,784 per year. American Family’s average rates were also lower than the state averages in the states we analyzed.
Depending on where you live, you may be able to get a discount for:
Having safety features or smart devices such as a video doorbell.
Having multiple American Family policies.
Buying a home within the past three years.
Going paperless, setting up automatic payments or paying your premium in full, upfront.
Being insured with American Family for at least a year.
Insuring a home that's less than 15 years old.
Being between 18 and 30 and having a parent who’s an American Family customer.
Replacing your home’s plumbing, heating or electrical systems within the past 15 years.
American Family had fewer than the expected number of complaints to state regulators relative to its size for home insurance, according to three years’ worth of data from the National Association of Insurance Commissioners.
Website: The American Family website offers comprehensive details on the company’s coverage options and discounts, plus general insurance advice. You can also use the site to get a quote, file and track claims and find a local agent.
App: Download the MyAmFam app to make payments or set up autopay, view policy information, file and track claims and reach out to your local agent.
Claims: American Family offers a variety of ways to file home insurance claims, including online, through the app and at 800-692-6326. You can track claim status on the company’s website or app. For advice, see how to file a home insurance claim.
Customer service: You can call American Family at 800-692-6326, reach out to a local agent or send an email through the website.
Where American Family stands out
Customer satisfaction. American Family receives fewer customer complaints than expected and scored above average for customer satisfaction in J.D. Power’s 2022 U.S. Home Insurance Study.
Affordability. American Family’s rates tend to be lower than average in the states where it sells homeowners policies, according to NerdWallet’s analysis.
Where American Family falls short
Availability. American Family’s homeowners policies generally aren’t available in certain parts of the U.S., including most of the East Coast.
Is American Family home insurance right for you?
American Family offers convenient ways to manage your policy, whether you prefer to do so online or with an agent. This aspect and its wide-ranging coverage options make it worth considering for any homeowner who lives in a state the company serves.
Other home insurance companies to consider
Not ready to make a decision? You may be interested in these other homeowners insurance companies:
Allstate: Many coverage options and discounts.
Liberty Mutual: Homeowners insurance with plenty of ways to save.
Progressive: Sells homeowners policies primarily through third parties.
State Farm: Strong coverage from the largest insurer in the country.
Homeowners insurance ratings methodology
NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverage, discounts and online experience. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our full ratings methodology for home insurance.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
Homeowners insurance rates methodology
NerdWallet averaged rates for 40-year-old homeowners from a variety of insurance companies in every ZIP code across all 50 states and Washington, D.C. Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1997. They had a $1,000 deductible and the following coverage limits:
$300,000 in dwelling coverage.
$30,000 in other structures coverage.
$150,000 in personal property coverage.
$60,000 in loss of use coverage.
$300,000 in liability coverage.
$1,000 in medical payments coverage.
These are sample rates generated through Quadrant Information Services. Your own rates will be different.