- American Family Insurance Overview: Founded in 1927, American Family operates as a policyholder-owned mutual company with strong financial health and a focus on digital innovation, serving 19 states mainly in the Midwest and Mountain West.
- Unique Coverage Options and Benefits: The company offers distinctive features like hidden water damage coverage, wildfire defense services at no extra cost in certain states, and a partnership with Costco for discounted policies.
- Limitations and Challenges: American Family's main drawbacks include limited availability (only 19 states), no flood or earthquake coverage, dog breed restrictions, and mixed customer satisfaction scores.
- Coverage Details and Customization: Standard policies include typical homeowners coverage, with optional add-ons like wildfire defense, service line protection, and identity theft, though it does not cover flood or earthquake risks.
- Customer Experience and Financial Strength: While it has excellent digital tools and good reputation for claims handling, recent satisfaction scores have declined; financially, it remains solid with high AM Best ratings and long-term stability.
American Family Home Insurance Overview
American Family Insurance was founded in 1927 in Madison, Wisconsin, originally as Farmers Mutual Insurance Company. Nearly a century later, it operates as a policyholder-owned mutual company with $21.3 billion in group revenue, $42.2 billion in assets, and a #202 ranking on the 2025 Fortune 500 list. The company employs approximately 11,000 people and contracts with more than 2,400 independent agents across 19 states, concentrated in the Midwest and Mountain West.
What makes American Family interesting is the combination of a traditional mutual company structure with a modern digital approach. The MyAmFam app ranks among the best in the industry (J.D. Power’s #3 for digital experience in 2025), and the company has added coverage options that address real-world gaps most carriers ignore. Hidden water damage coverage pays for leaks caused by wear and tear behind walls or under floors. A wildfire defense services endorsement, included free in five Western states, deploys actual fire protection crews to your property before a wildfire reaches it. And a Costco membership partnership gives warehouse club members access to discounted policies.
The trade-offs are limited availability (19 states, none on the East Coast), no flood or earthquake coverage, dog breed restrictions on liability, and some volatility in customer satisfaction scores. The J.D. Power claims satisfaction score was strong in 2024 (877) but dropped to about average (680) in 2025 under a redesigned study. Still, the NAIC complaint data is consistently good, the financial strength is rock-solid (23 consecutive years at A from AM Best), and the company’s mutual ownership means decisions are made for policyholders, not shareholders.
Pros and Cons
Pros
- Wildfire defense services at no extra cost: In Arizona, Colorado, Nevada, Oregon, and Washington, American Family automatically includes a partnership with Wildfire Defense Systems (WDS). When a wildfire threatens your area, WDS deploys fire protection contractors to your property to prepare your home and limit losses. No other major carrier offers this as a standard inclusion.
- Hidden water damage coverage: An optional add-on that covers leaks caused by wear and tear in plumbing, HVAC, and appliances, including mold remediation. Standard policies only cover sudden, accidental water damage. This fills a real gap.
- Strong digital experience: The MyAmFam app scores 4.7/5 on iOS and ranked #3 in J.D. Power’s 2025 digital experience study (715/1,000). You can file claims through the app, view policies, make payments, and, for storm damage, text STORM to AMFAM to start a claim.
- Generous discount menu: Up to 40% for bundling home and auto, plus smart home, generational (18-30 with insured parents), Costco membership, new home, renovated home, loyalty, claims-free, and autopay discounts. The variety is above average.
- 23 consecutive years of A (Excellent) from AM Best: Financial stability is not a question. The rating has been consistent through multiple market cycles, and the company holds additional ratings of A1 from Moody’s and A from S&P.
- Mutual company structure: American Family is owned by its policyholders, not shareholders. This means the company is not under pressure to maximize quarterly profits at the expense of claims payouts or customer service.
Cons
- Only available in 19 states: No coverage on the East Coast, Southeast (except Georgia), or most of the South and Southwest. If you do not live in one of the 19 covered states, American Family is not an option.
- No flood or earthquake coverage: Unlike carriers such as Nationwide, Farmers, or Erie, American Family does not offer flood or earthquake endorsements on its homeowners policy. You would need to purchase these separately through the NFIP or a specialty carrier.
- Dog breed restrictions: Certain breeds may face limited liability coverage (capped at $25,000) if your pet has a history of biting or aggression. This is more restrictive than some competitors.
- Inconsistent claims satisfaction: The J.D. Power property claims score dropped from 877 in 2024 to 680 in 2025 (the 2025 study was redesigned, so scores are not directly comparable). Some ConsumerAffairs reviews cite claims, delays, and denials.
- Rate increase complaints: Multiple customer reviews mention significant premium increases (up to 50% in some cases) with little warning or explanation. This is an industry-wide trend, but it stands out in American Family’s review profiles.
- Cannot buy online directly: While the app is good for managing policies, new customers must work with a local agent or call for a quote. You cannot purchase a new policy entirely online.
Coverage Options
Standard Coverage
American Family’s standard homeowners policy includes the typical HO-3 form coverages:
Coverage Type | What It Covers | Notable Details |
Dwelling (A) | Your home’s structure, roof, walls, and built-in systems | Standard replacement cost |
Other Structures (B) | Detached garages, sheds, fences, pools | Typically, 10% of dwelling coverage |
Personal Property (C) | Furniture, electronics, clothing, belongings | Replacement cost available |
Loss of Use (D) | Additional living expenses if the home is uninhabitable | Hotel, meals, temporary housing |
Personal Liability (E) | Lawsuits for bodily injury or property damage | Standard limits; umbrella available |
Medical Payments (F) | Medical bills for guests injured on your property | No-fault coverage |
Unique and Optional Coverage
- Hidden water damage: Covers leaks from plumbing, HVAC, appliances, and fire sprinklers caused by normal wear and tear, including mold remediation. Standard policies do not cover wear-and-tear water damage. Not available in all states.
- Wildfire defense services: Free in AZ, CO, NV, OR, and WA. Wildfire Defense Systems deploys crews to prepare and protect your home before a wildfire reaches it. Includes pre-fire assessment, combustible removal, and post-fire monitoring.
- Service line coverage: Protects against damage to underground utility lines (water, sewer, electrical, gas) running from the street to your house. Repairs can cost thousands and are not covered by standard policies.
- Emergency water removal program: American Family’s vendors focus on drying structural components in place rather than demolition. Includes a two-year workmanship warranty.
- Identity theft coverage: Available as an endorsement. Covers costs associated with identity restoration.
- Valuable possessions coverage: Scheduled coverage for high-value items like jewelry, art, and collectibles at specified amounts.
- In-home business coverage: Coverage for business equipment and liability for customers who run a business from home.
- Short-term rental coverage: For homeowners who rent their property on platforms like Airbnb or Vrbo.
What’s Not Covered
Standard exclusions apply: flood (no endorsement available; must purchase separately through NFIP), earthquake (not offered), normal wear and tear (except through the hidden water damage add-on), pest damage, and intentional damage. Dog breeds with a biting or aggression history may have liability coverage capped at $25,000.
American Family is not the cheapest homeowners insurer, but it is consistently below the national average across multiple methodologies. The Costco membership discount and bundling savings (up to 40%) can bring costs down further. Your actual rate depends on your state, home age, claims history, coverage amounts, and which discounts you qualify for.
As a mutual company, American Family does not face the same shareholder pressure to raise rates that publicly traded insurers do. That said, customer reviews indicate that rate increases have been significant for some policyholders in recent years, driven by the same industry-wide forces (rising construction costs, elevated weather losses) affecting all carriers.
Discounts and Savings
American Family offers one of the more varied discount menus among the carriers in our review set:
Discount | Estimated Savings | Details |
Multi-policy bundle | Up to 40% | Home + American Family auto insurance; additional savings with life insurance |
Smart home devices | Varies by state | Nest devices, security systems, water leak detectors, motion sensors |
New home (under 15 years) | Varies by state | Newer homes with fewer claims qualify for lower rates |
Renovated home | Varies by state | Replaced plumbing, electrical, or heating in the last 15 years |
Generational | Varies by state | Ages 18-30 with parents who have an active AmFam home or auto policy |
Costco membership | Varies | Provide the Costco membership number at purchase; over 500,000 members have used this |
Claims-free | Varies | No recent claims history |
Loyalty | Varies | One or more years as a customer |
Autopay / paperless | Varies | Enroll in automatic payments or paperless billing |
The up-to-40% bundling discount is among the highest in our review set (Allstate offers up to 25%, Erie up to 25%, Nationwide up to 23%). The generational discount is unusual and specifically targets young homeowners whose parents are already insured with American Family. The Costco partnership is a nice perk for the roughly 130 million Costco members nationwide, though the homeowners’ insurance is underwritten through Homesite rather than directly by American Family.
Claims Experience
Mixed Signals
American Family’s claims data tells two somewhat different stories depending on the year:
- J.D. Power 2024 Property Claims: Score of 877 out of 1,000, well above the industry average. This placed American Family among the better performers for claims satisfaction.
- J.D. Power 2025 Property Claims: Score of 680, roughly at the industry average of 682. The 2025 study was redesigned, so the scores are not directly comparable to 2024, but the relative positioning dropped.
- J.D. Power 2024 Home Insurance (Central region): #2 with a score of 674, above the 647 regional average.
- NAIC Complaint Index (2024): 0.47 for American Family Mutual and 0.81 for American Family Insurance Company. Both are below the 1.0 industry baseline, meaning fewer complaints than expected for an insurer of this size.
- NAIC Complaint Index (2023): 0.50 overall, roughly half the expected complaint rate.
The bottom line: the NAIC data is consistently positive, and the 2024 claims score was strong. But the 2025 drop and the ConsumerAffairs reviews suggesting claims delays and aggressive rate increases after claims are worth noting. American Family is not in the same league as Amica or Erie for claims reputation, but it is solidly above average.
How to File a Claim
American Family offers more ways to file a claim than most carriers:
- MyAmFam app (available 24/7)
- Online at amfam.com (log in to My Account)
- Call 1-800-MYAMFAM (1-800-692-6326), available 24/7
- Text STORM to AMFAM for wind or hail damage claims
- Contact your local American Family agent
The text-to-file option for storm damage is a nice touch that few competitors offer. American Family’s emergency water removal program also stands out: its vendors prioritize drying structural components in place rather than demolition, which can reduce overall claim costs and repair timelines. The program includes a two-year workmanship warranty.
Customer Service and Digital Experience
Agent-Based With Strong Digital Tools
American Family uses an agent-based distribution model with 2,400+ independent agents. New customers must work with an agent to get a quote and purchase a policy. But once you are a customer, the digital tools are among the best in the industry.
Digital Experience
- MyAmFam app (iOS): 4.7/5 stars based on 87,000+ reviews. File claims, make payments, view ID cards, and request roadside assistance.
- MyAmFam app (Android): 3.2/5 stars based on 10,000+ reviews. Same features, but lower-rated.
- J.D. Power 2025 Digital Experience: #3 overall with a score of 715 out of 1,000, behind Nationwide and Amica but above the 699 industry average.
- Website: My Account portal for policy management, payments, and claims.
Satisfaction Scores
- Trustpilot: 4.7/5 based on 1,336 reviews. This is one of the highest Trustpilot scores in our review set.
- ConsumerAffairs: 3.5/5 based on approximately 930 reviews. Recent reviews skew negative, with complaints about rate increases.
- BBB: A+ rating. 60 complaints over the past three years, primarily about billing.
- Insure.com: 86% of customers report overall satisfaction.
- WalletHub: 3.8/5 from editors.
- The Zebra: 3.8/5.
The gap between Trustpilot (4.7) and ConsumerAffairs (3.5) reflects a common pattern: customers who seek out Trustpilot tend to leave more positive reviews, while ConsumerAffairs attracts more complaint-driven feedback. The BBB complaints are mostly about billing, not claims, which is a relatively minor concern.
Financial Strength
American Family’s financial position is strong and stable:
- AM Best: A (Excellent) for 23 consecutive years. Stable outlook.
- Moody’s: A1 (fifth highest of 21 ratings).
- S&P: A (sixth highest of 21 ratings).
- Group revenue: $20 billion (2024).
- Total assets: $42.2 billion.
- Fortune 500: #202 on the 2025 list.
- 12th-largest property/casualty insurer in the U.S. by direct premiums written.
- AM Best “Standing the Test of Time” distinction for 75+ years of A or better ratings.
What this means for you: American Family can pay its claims. The company sold The General (a subsidiary) in late 2024, which improved capital levels and gave the company more financial flexibility. As a mutual company, there are no shareholders demanding short-term profits, which typically translates into more policyholder-friendly decisions around claims and pricing. The three-agency consensus (AM Best, Moody’s, S&P) at the A level is a strong signal of financial health.
Who Is American Family Good For?
Best For
- Homeowners in the Midwest and Mountain West: If you live in one of American Family’s 19 states (especially WI, MN, IA, CO, OR, WA), this should be on your quote list. The pricing is competitive, and the product is solid.
- Homeowners in wildfire-prone areas: The free wildfire defense services endorsement in AZ, CO, NV, OR, and WA is a standout feature. No other major carrier deploys fire protection crews to your property at no additional cost.
- Costco members: The Costco membership discount makes American Family one of the more accessible options for the 130 million+ Costco cardholders. The policies are underwritten through Homesite.
- Tech-savvy customers who still want an agent: American Family splits the difference between digital-first carriers (Lemonade, Hippo) and agent-only carriers (Erie). The app is excellent, but you still have a local agent for complex needs.
- Young homeowners with insured parents: The generational discount (ages 18 to 30 with parents who have AmFam policies) is a unique savings opportunity.
Not Ideal For
- Anyone outside the 19 covered states: No East Coast, no Southeast (except Georgia), no Texas, Florida, California, or New England.
- Homeowners who need flood or earthquake coverage bundled: American Family does not offer these as endorsements. You will need to purchase separate policies.
- Owners of restricted dog breeds: Liability coverage may be capped at $25,000 for breeds with a biting or aggression history.
- Customers who want to buy entirely online: A local agent is required for new quotes and purchases.
How to Get a Quote
You can get an American Family homeowners’ quote in two ways:
- Contact a local American Family agent: Use the agent finder at amfam.com. Agents can provide quotes in person, by phone, or by email.
- Call American Family: 1-800-MYAMFAM (1-800-692-6326) to be connected with an agent.
Costco members: You can also get a quote through costco.amfam.com, which applies your Costco membership discount automatically. Note that homeowners’ policies through the Costco channel are underwritten by Homesite, not American Family directly, so coverage details and pricing may differ.
How American Family Compares
American Family | Nationwide | Farmers | |
Overall Rating | 3.5 / 5 | 4.0 / 5 | 3.5 / 5 |
Avg. Annual Premium | ~$1,994 | ~$2,223-$2,610 | ~$2,211-$3,305 |
AM Best Rating | A (Excellent) | A+ (Superior) | A (Excellent) |
J.D. Power Claims (2024) | 877 / 1,000 | 709 / 1,000 | Not in the top rankings |
NAIC Complaint Index | 0.47-0.81 | 0.84 | 1.19 |
Wildfire Defense | Free in 5 states | No | No |
States Available | 19 | 44 + D.C. | 44 + D.C. |
Best For | Midwest/wildfire areas | Coverage depth | Tiered plans |
American Family vs. Nationwide
Nationwide is the bigger carrier with broader availability (44+ states vs. 19), an A+ AM Best rating, a free Ting fire sensor for all policyholders, and the most coverage options of any carrier we have reviewed. American Family counters with a lower average premium ($1,994 vs. $2,223+), a stronger 2024 claims score (877 vs. 709), better NAIC complaint data (0.47 vs. 0.84), and the wildfire defense services that Nationwide does not offer. If you live in an overlap state and wildfire risk matters to you, American Family is worth the comparison. For most other scenarios, Nationwide’s broader coverage options and availability give it an edge.
American Family vs. Farmers
Farmers operates in a similar Midwestern/Western footprint with 44+ states of availability. Both use agent-based distribution models. American Family has better pricing ($1,994 vs. $2,211+), stronger NAIC data (0.47-0.81 vs. 1.19), and the wildfire defense feature. Farmers counters with its three-tier Smart Plan system (Basic, Enhanced, Premier), more coverage customization, and Eco-Rebuild for environmentally friendly repairs. For homeowners who want tiered flexibility, Farmers may be the better fit. For pure value and claims data, American Family has the edge.
Final Verdict
American Family earns a 3.5 out of 5 in our review. It is a well-run mutual company with a nearly century-long track record, consistent financial strength, and some coverage features you will not find elsewhere. The wildfire defense services endorsement is a standout for Western homeowners, the hidden water damage coverage fills a real gap that most standard policies leave open, and the discount menu (up to 40% bundling, Costco, generational) gives policyholders real ways to save.
What holds American Family back from a higher rating is the 19-state limitation, the lack of flood and earthquake coverage, and the inconsistency in customer satisfaction data. The 2024 claims satisfaction was strong, but the 2025 number was middling, and ConsumerAffairs reviews reflect real frustration with rate increases and claims handling. The requirement to work with an agent for new policies is a minor inconvenience, though the digital tools are excellent once you are a customer.
If you live in the Midwest or Mountain West, American Family deserves a quote. For homeowners in wildfire-prone areas of Arizona, Colorado, or the Pacific Northwest, the wildfire defense endorsement alone makes it worth comparing against Nationwide, State Farm, and Farmers.
Our Methodology
This review uses a weighted scoring system: coverage options (25%), pricing and value (20%), claims experience (20%), customer service (15%), discounts and savings (10%), and digital experience (10%).
Frequently Asked Questions
Answers to your questions about American Family home insurance.
American Family is a solid choice, particularly in its 19-state footprint. It scores well on NAIC complaint data (below the industry baseline), offers unique coverage options like hidden water damage and wildfire defense, and has an excellent mobile app. The pricing is generally below the national average. The main concerns are limited availability, no flood or earthquake options, and some inconsistency in J.D. Power satisfaction scores between 2024 and 2025.
American Family Insurance has been in business since 1927 and is headquartered in Madison, Wisconsin. It is a mutual company (owned by policyholders, not shareholders), ranks #202 on the 2025 Fortune 500, manages $42.2 billion in assets, and has held an A (Excellent) rating from AM Best for 23 consecutive years. It is one of the 12 largest property/casualty insurers in the United States.
American Family is generally priced below the national average. Your actual rate depends on your state, home age, coverage level, claims history, and applicable discounts. Bundling home and auto can save up to 40%.
No. American Family does not offer flood insurance as part of its homeowners policy, and there is no flood endorsement available. If you need flood coverage, you will need to purchase a separate policy through the National Flood Insurance Program (NFIP) or a private flood insurer.
In Arizona, Colorado, Nevada, Oregon, and Washington, American Family automatically includes a partnership with Wildfire Defense Systems (WDS) at no extra charge. When a wildfire threatens your area, WDS may deploy a crew of fire protection contractors to assess your property, remove combustibles, and help limit damage before the fire arrives. This is not a replacement for your local fire department, but it works as an additional protective measure.
Yes. Costco members can get a quote through costco.amfam.com and receive a membership discount on their policy. Over 500,000 Costco members have used this partnership. However, homeowners’ policies through the Costco channel are underwritten by Homesite, not American Family directly, so coverage options may differ from a standard American Family policy.
