How Much Does American Family Home Insurance Cost?
The average annual cost for American Family home insurance is $2,020 for $350,000 coverage. That’s about $340 more than the national average ($1,678). But American Family has a very low level of complaints, which helped it earn a top score in our ratings of the best home insurance companies.
Cost by Deductible
| Deductible Amount | Annual average cost |
|---|---|
| $250 | $2,017 |
| $500 | $1,997 |
| $1,000 | $1,978 |
| $1,500 | $1,948 |
| $2,000 | $1,924 |
Cost by Dwelling Coverage
| Dwelling Coverage Limit | Annual average cost |
|---|---|
| $200,000 | $1,440 |
| $350,000 | $2,020 |
| $500,000 | $2,559 |
| $750,000 | $3,313 |
Comparing American Family Home Insurance
Price
American Family offers higher average home insurance rates than the competitors we analyzed. The company’s average rate is over $1,000 more than Progressive, the cheapest home insurance company, but it also falls well behind other companies like Nationwide and Erie.
Costs can vary significantly among insurers, so it’s smart to compare home insurance quotes from multiple companies to ensure you don’t overpay.
| Home insurance company | Average cost per year |
|---|---|
| $729 | |
| $1,157 | |
| $1,256 | |
| USAA* | $1,270 |
| $1,298 | |
| $1,344 | |
| $1,395 | |
| $1,525 | |
| $1,810 | |
| American Family | $2,020 |
| $2,035 | |
| $2,065 | |
| Shelter | $2,363 |
| $3,220 |
Bundling with Auto Insurance
American Family offers one of the best bundling discounts of the insurance companies we researched. The company has an average 18% bundling discount, also called a multi-policy discount. Only State Farm has a more generous multi-policy discount.
| Company | Average discount for bundling home and auto insurance | Average annual savings for bundling home and auto insurance |
|---|---|---|
| 23% | $787 | |
| American Family | 18% | $486 |
| 18% | $732 | |
| National average | 14% | $466 |
Military and Veterans
American Family doesn’t have a veteran emphasis like USAA, so it’s hard to compete with that company when it comes to military-related perks. USAA policies are only available to military members, veterans and their families.
USAA’s military-related benefits are not offered by other insurance companies. These include military equipment and uniform replacement without a deductible for active-duty members. It also covers personal property without a deductible if the loss is due to war.
But it’s still wise to comparison shop because not all insurers offer the same types of coverage. For example, American Family offers guaranteed replacement cost coverage, but USAA does not.
High-Value Homes
American Family’s home insurance for high-value homes costs more than competitors we evaluated, on average. But it’s still about $430 less than the national average.
| Company | Annual average home insurance cost for $1 million in coverage |
|---|---|
| $2,362 | |
| $2,695 | |
| $3,253 | |
| $3,304 | |
| $3,731 | |
| $3,825 | |
| $4,197 | |
| American Family | $4,203 |
| National average | $4,636 |
High Liability Limits
Chubb offers up to $100 million in liability insurance, which sets it apart from competitors, including American Family. If you need liability coverage beyond what’s typically offered in a standard home insurance policy, American Family offers separate umbrella insurance. It provides coverage of up to $2 million, which might be enough for your needs.
American Family also offers guaranteed replacement coverage, which guarantees that the insurer will pay to rebuild your house after a disaster regardless of cost, as long as it’s due to a problem covered by your policy.
Coverage Perks
Erie Insurance received the highest marks in our best home insurance ratings for coverage perks. Still, American Family also offers add-ons that might interest you, including equipment breakdown, sump pump, credit theft and hidden water damage coverage.
Coverage add-ons may expand your coverage, but they also typically increase your home insurance cost.
Extended Coverage for Dwelling
American Family offers both extended replacement cost and guaranteed replacement cost coverage through American Family Connect. Extended replacement cost coverage allows you to exceed dwelling coverage limits, usually by a specified percentage or amount, if the cost to rebuild is more than your dwelling limit.
| Company | Offers extended replacement cost coverage? |
|---|---|
| American Family | From American Family Connect, starting at $5,000 |
| Up to 25% more | |
| Up to 25% more | |
| Up to 25% more | |
| Up to 50% more | |
| Up to 20% more | |
| USAA* | Up to 25% or 50% more |
| Up to 25% more |
*USAA is available only to veterans, military members and their families.
American Family also offers guaranteed replacement coverage, which guarantees that the insurer will pay to rebuild your house after a disaster regardless of cost, as long as it’s due to a problem covered by your policy.
| Company | Offers guaranteed replacement cost coverage? |
|---|---|
| American Family | Yes, with American Family Connect |
| Yes | |
| No | |
| Yes | |
| Yes | |
| No | |
| USAA* | No |
| Yes |
What Types of Coverage Does American Family Home Insurance Offer?
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 and your household members accidentally cause to others, such as a houseguest who slips on a wet floor. Liability insurance also pays for your 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, such as laundry or pet boarding.
- Medical payments: Medical payments coverage pays for smaller medical bills, typically up to $5,000, of people accidentally hurt on or off your property, not including household members. Medical payments coverage doesn’t consider who was at fault.
Homeowners insurance policy add-ons from American Family include:
- 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.
Other Types of Insurance Offered by American Family Insurance
In addition to homeowners insurance, American Family also sells:
- Auto insurance
- ATV insurance
- Boat insurance
- Condo insurance
- Farm and ranch insurance
- Landlord insurance
- Life Insurance
- Manufactured home insurance
- Motorcycle insurance
- Pet insurance through Embrace
- Renters insurance
- RV insurance
- Small business insurance
- Travel Insurance
Home Insurance Complaints Against American Family
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.
American Family Homeowners Insurance Discounts
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 years.
- 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.
About American Family Homeowners Insurance
American Family Insurance started in 1927 in Madison, Wisconsin, by selling insurance policies to farmers. Today American Family Insurance is the No. 16 largest property/casualty insurance company in the United States.
What Is the Financial Strength Rating of American Family Insurance?
AM Best rated American Family Insurance’s financial strength ratings as A (Excellent), highlighting the company’s balance sheet strength. The rating agency also praised American Family’s “adequate operating performance, favorable business profile and appropriate enterprise risk management.”
Methodology
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. Source: Quadrant Information Services.
- 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.
