American Family Home Insurance Review 2024

American Family has higher-than-average home insurance rates when compared to other top companies we evaluated. Despite the higher costs, it made our list of best home insurance companies thanks to its low customer complaints and expanded dwelling coverage options.

Home insurance company	Annual average cost for $350,000 coverage	Dollar difference from national annual average of $1,678
Progressive	$729	-$949
Nationwide	$1,157	-$521
Erie	$1,256	-$422
State Farm	$1,298	-$380
Chubb	$1,810	+$132
American Family	$2,020	+$342
Farmers	$2,035	+$357
Country Financial	$2,065	+$387
Travelers	$3,220	+1,542

Source: Quadrant Information Services.

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American Family Insurance started in 1927 in Madison, Wisconsin, by selling insurance policies to farmers. Today American Family Insurance is the No. 13 largest property/casualty insurance company in the United States.

You’ll find these standard types of coverage in an American Family homeowners policy:

• Dwelling coverage: Dwelling coverage pays to repair damage or replace your house structure and attached structures (like a porch) due to problems covered by the policy, like fires and tornadoes.
• Other structures coverage: This pays to repair and replace detached structures, like a shed, fence or gazebo.
• Personal property coverage: Personal property insurance pays to repair or replace damaged and stolen personal items, like electronics, furniture, clothes and rugs.
• Liability insurance: Liability home insurance pays for property damage and injuries you accidentally cause to others, such as a houseguest who slips on a wet floor. Liability insurance also pays for a legal defense in case you are sued because of an accident.
• Additional living expenses coverage: Loss of use, or additional living expenses coverage pays for extra expenses that you incur when you are no longer able to live at your home due to a problem covered by your policy, like a fire. This includes hotel bills, restaurant meals and other services, like laundry or pet boarding.
• Medical payments coverage: Pays medical bills of people who blame you for accidental injuries, without regard to fault. Medical payments coverage is typically in small amounts, including $1,000 to $5,000.

Homeowners insurance policy add-ons from American Family include:

• Extended or guaranteed replacement cost coverage. Extended and guaranteed replacement cost coverage are great options to have in case local construction costs rise, which often happens after widespread damage in an area. Extended replacement cost coverage will provide a certain percentage of additional coverage over your dwelling coverage amount. Guaranteed replacement cost coverage is even better, providing an unlimited amount for necessary house rebuilding costs.
• Equipment breakdown covers electrical, mechanical and pressure systems breakdown for equipment like major appliances, home systems and smart home devices.
• Matching siding protection pays to replace undamaged siding to match repaired siding if your home is damaged due to a problem covered by your policy, like a tornado.
• Diminishing deductible adds an immediate $100 credit toward your deductible and another $100 credit for each year you don’t make a home insurance claim.
• Sump pump and water backup coverage pays for damage to your home due to an overflowing sump pump or water backup.
• Credit theft protection and monitoring keeps track of your credit data and provides identity theft monitoring.
• Hidden water damage coverage pays for water damage from leaks within the plumbing or household appliances (like a dishwasher). This also pays for deterioration, corrosion and rust, and wear and tear.

American Family also sells renters insurance, condo insurance, manufactured home insurance and landlord insurance.

An umbrella insurance policy from American Family provides an extra layer of liability coverage above your home insurance policy’s liability limits. For instance, your home insurance policy’s liability coverage may max out at $500,000, but an umbrella policy can stretch that coverage to $1 million or more. Umbrella coverage can be applied to a home insurance policy for a primary residence or a seasonal home.

Related: Cheapest Homeowners Insurance Companies Of 2024

Home insurance discounts typically available from American Family Insurance include:

• Safe, secure, smart home discount. If you have qualifying smart devices in your home, such as Frontpoint Security System and Nest devices, you may be eligible for a discount.
• Bundle and save discount. If you bundle your home and auto insurance, you could save an average of 18%.
• Age of home discount. If your home is less than 15 years old, you may qualify for a discount.
• Renovated home discount. If you have made major renovations to your plumbing, heating or electrical systems in the last 15 years, you could earn a discount. There’s also a roof replacement discount if you fully replaced your roof in the last nine year.
• Insurance payment discount. Opting for auto pay, full pay or going paperless with your policy documents and billing will earn you discounts.
• Loyalty discount. If you’ve been an American Family customer for a year or longer, you may qualify for a discount.
• Generational discount. If you are between ages 18 and 30 and your parents are American Family home or auto insurance customers, you may qualify for a discount on your home insurance policy.

American Family home insurance has a much better than average complaint level compared to the industry average. A low level of complaints can show a high level of customer satisfaction.

To find the best home insurance we scored companies based on these factors:

• Home insurance rates (50% of score): Based on average rates for each insurance company for homes with dwelling coverage of $200,000, $350,000, $500,000 and $750,000.
• Complaints (20% weight): Based on complaints about home insurance that were upheld by state insurance departments. Source: National Association of Insurance Commissioners.
• Availability of extended and/or guaranteed replacement cost coverage (20% of score): Extra dwelling coverage is valuable in the event of large disasters, when construction materials and labor costs tend to spike. We gave points to companies that offer either extended or guaranteed replacement cost coverage. Source: Forbes Advisor research.
• Banned dog lists (10% of score): Banned dog breed lists can make homeowners ineligible for coverage. (A company’s banned dog list might not be applicable in all states.) While any homeowners insurance company could potentially ban any dog with a biting history, not all put a ban on specific breeds. Source: Forbes Advisor research.