What we like:
Great coverage for high-value items
|J.D. Power Overall Satisfaction Rating||2 out of 5 stars|
|A.M. Best Rating||A|
|Discounts||Multi-Policy, Claim-Free, Smart Home|
Most apartment complexes and landlords are required to have homeowners or property insurance of some amount. Unfortunately, that insurance coverage only extends to damage that takes place to the actual home, not the belongings inside.
Companies like American Family Insurance offer financial products to bridge that gap. Renters insurance provides coverage for your own items in the event of a theft, fire, or other damage. With this type of insurance, your personal belongings are replaced up to the amount of the policy limits, eliminating the need to pay out of pocket to replace them. In exchange for a premium, an insurance company takes on the risk of loss for as long as you have the policy.
American Family Insurance, founded in 1927, is a Madison, Wis.-based property and casualty insurance company offering a variety of protection strategies for consumers and businesses. The insurance company operates throughout the Midwest and West, and it is well-known for its homeowners and renters insurance.
American Family Insurance also provides protection for individuals through auto insurance and life insurance, and for businesses through farm and ranch coverage and general business liability insurance. The company is the 13th largest property and casualty insurance company in the U.S., and its policies are sold through a network of more than 8,100 exclusive insurance agents.
Cost of an American Family Renters Insurance Policy
Through American Family Insurance, renters can get a basic policy that offers property and personal belongings protection for as low as $11.50 per month. The cost, which is based on several factors, may be as high as $32 per month for some renters. The price of American Family Insurance renters insurance depends in part on the size of the home and value of the personal items.
The cost also depends on the location of the property. Should a renter live in a large metropolitan area, the cost of coverage might be higher. For renters who have had renters insurance claims in the past, either with American Family Insurance or other insurance providers, the cost of coverage will likely be higher. Renters also have the option to add on coverage for liability and loss of use of a property, which can add up to $15 per month to the base premium.
American Family Insurance offers basic renters insurance coverage that protects against the loss of personal property, for example in the event of fire, theft, or water damage. The standard level of coverage does not include unique valuables, such as wedding rings, family heirlooms, art collections, or other significant personal belongings. Renters can, however, add scheduled property coverage to a baseline renters insurance policy to ensure these special items are included in the policy.
In addition to property protection, American Family Insurance also offers liability coverage that protects renters if an accident caused injury or loss to a guest in the home. This coverage helps the renter pay for property damage, first aid, as well as medical or court costs incurred by the guest. The insurance company also offers “loss of use” coverage, which provides financial assistance if the rental home is uninhabitable after damage. That includes costs for meals and a hotel stay. Some insurance companies include liability coverage and “loss of use” coverage in a baseline policy, but American Family Insurance does not.
Renters insurance add-ons may also include identity theft protection, which can be included in a policy for a few extra dollars per month. Renters may also opt for travel protection to cover trip cancelations and global medical insurance. Adding pet insurance can cover you up to $1,000, as does home-based insurance businesses, even for renters. The limits of each policy and its add-ons depend on the amount of coverage.
Requirements to Get Insured
American Family Insurance requires renters to have a valid leasing agreement with a landlord or building complex. Of course, they must live within the coverage area of American Family Insurance. To maintain a policy, renters need to make on-time premium payments each month, quarter, or year, either via direct billing or through automatic payments.
Renters insurance does not typically require a strong credit history, but it is important for renters to have a solid track record of paying insurance premiums on time, as well as few to no claims against other insurance policies in the past. American Family Insurance requires renters to speak directly with an agent to secure coverage and submit an application.
Although American Family Insurance is a well-known insurance provider, the renters insurance coverage offered to individuals can cost more than comparable policies. This is because American Family Insurance renters policies require add-ons for liability insurance and loss of use insurance above basic property protection coverage. These add-ons are often included in other renters policies from other insurance providers. Additionally, the coverage area of American Family Insurance is smaller than most national insurance companies.
Renters living in the following states may qualify for insurance through American Family Insurance: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.
Individuals who reside outside of these states may not be eligible to get renters insurance through the company. However, they may have other insurance coverage options.
American Family Insurance has an A+ rating with the Better Business Bureau, although the company is not accredited with the organization. Although the overall rating for customer satisfaction is relatively high, the average customer review is less than two out of five stars. The majority of the reviews focus on specific, individual insurance agents, and not the company or its renters insurance coverage overall.
The insurance company does make it easy to check on policy details, make payments, submit claims, and change policy coverage both online and through its mobile app. Additionally, because all American Family Insurance policies are sold through exclusive agents, renters have access to an insurance professional in addition to the parent company. This makes renters insurance more valuable than other policies that do not include a dedicated agent.
Policyholders may contact the company anytime at 1-800-692-6326, or via online chat from 8 a.m. to 8 p.m. Monday through Friday.
American Family Insurance offers several options for renters insurance where coverage is offered. Because policies are not available nationwide, the company may not be a strong fit for all renters.
Additionally, the requirement to add on liability and loss of use protections to a baseline policy may make the coverage more expensive than comparable renters insurance policies. However, renters who live within the coverage area and need property protection may contact an American Family Insurance agent to receive a quote.