Overview of American Modern Home Insurance
American Modern isn’t exactly a household name, primarily because it always has offered niche insurance policies. Founded in Cincinnati, Ohio, in 1938 as an automobile finance business called The Midland Company, it entered the insurance business in 1965 as a mobile home insurer with the establishment of its American Modern division. By the late 1970s, the company began offering specialty policies, and by 2000, it offered watercraft, all-terrain vehicle, motorcycle and snowmobile coverage. Today, American Modern Insurance Group is owned by Munich Re and continues to offer specialty insurance lines, which now also include pet insurance, as well as residential coverage for unique situations, such as vacation homes or vacant properties.
How Does American Modern Home Insurance Rate?
Financial Strength Rating
A Best’s Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. It is not a warranty of a company’s financial strength and ability to meet its obligations to policyholders. View our Important Notice: Best’s Credit Ratings for a disclaimer notice and complete details at http://www.ambest.com/ratings/notice.
Financial Strength is rated on a scale of D (poor) to A+ (superior). A rating notch of either a second “+” or a “-“ indicates the gradation of financial strength within the category. We can’t guarantee that the subsidiary of American Modern Insurance rated here is the subsidiary that will underwrite your insurance policy. Check with your insurance agent and review A.M. Best’s Financial Strength Rating Guide for more information.
Best’s Credit Ratings™ are under continuous review and subject to change and/or affirmation. For the latest Best’s Credit Ratings™ and Best’s Credit Reports which include Best’s Credit Ratings™), visit the A.M. Best website at http://www.ambest.com. See Guide to Best’s Credit Ratings™ for explanation of use and charges.
Best’s Credit Ratings™ reproduced herein appear under license from A.M. Best and do not constitute, either expressly or impliedly, an endorsement of MoneyGeek.com or its recommendations, formulas, criteria or comparisons to any other ratings, rating scales or rating organizations which are published or referenced herein. A.M. Best is not responsible for transcription errors made in presenting Best’s Credit Ratings™. Best’s Credit Ratings™ are proprietary and may not be reproduced or distributed without the express written permission of A.M. Best Company.
Source A.M. Best
Effective Date: October 2016
Customer Complaint Ratio
The National Association of Insurance Commissioners (NAIC) collects complaint information from state insurance regulators. The national median complaint ratio is 1. A score of less than 1 means a company has a lower than average number of complaints, while a score higher than 1 means it has more than average. The American Modern Insurance Company subsidiary rated here may not be the subsidiary that underwrites your insurance policy. Check with your insurance agent for more information.
Last Updated: July 2017
Pros and Cons of American Modern Home Insurance
- American Modern provides home insurance for specialty markets such as mobile homes, seasonal homes and more.
- You can add extra coverage to the basic home insurance policy by purchasing an Enhanced Coverage endorsement.
- American Modern has a solid mobile app that includes the ability to begin a claim report.
- The company is proactive in understanding issues related to smart homes, or homes featuring automated systems.
- Because American Modern policies are specialized, the company doesn’t offer the basic discounts usually found on home insurance policies.
- American Modern doesn’t have an online rate calculator. Instead, you can call an agent or fill out an information form and submit it online, and an agent will contact you with a quote.
- Their basic insurance coverage provides protection against fewer threats than standard policies.
American Modern Home Insurance Coverage
American Modern home insurance is designed for properties that can’t get good rates with standard insurance companies, or perhaps can’t get any coverage at all. So it’s no surprise that a policy from American Modern is very limited. Its role is not to provide insurance with a lot of extras, but simply to provide insurance for a niche market that might otherwise not be able to find the protection that an insurance policy offers.
The standard coverages on an American Modern insurance policy are about as limited as can be and still offer any protection. You can pay a higher premium and upgrade to enhanced coverage, but the default coverage is pretty bare bones, and you’ll need to pay attention to what perils are covered in order to be sure you have the protection you want.
The basic home insurance policy from American Modern offers protection against named perils only, such as fire, lightning and wind, which is quite limited compared to a standard policy from the typical insurance company. This coverage can be upgraded to include a wider range of threats by adding the optional Enhanced Coverage endorsement. Another limitation is that repairs will be made on the basis of actual cash value, meaning that depreciation of the home is taken into account. Again, in many states, American Modern offers an option to upgrade the policy so that it will cover true replacement costs.
Your personal belongings are covered for actual cost value, so if they are damaged or destroyed due to a covered loss, you’ll get only the depreciated value for them.
As in most standard insurance policies, you are covered if someone is injured on your property, or if you injure someone or damage their property anywhere away from your home.
Fences, detached garages and sheds are covered at a percentage of the dwelling coverage limit.
Also known as loss of use, this provision covers you if you have to move out of your home due to a covered loss. It covers your extra living expenses until repairs are complete or you find a new home.
Basic coverage includes the costs for emergency repairs that prevent additional damage, such as covering your roof after a storm.
In essence, this feature adds an element of home warranty protection to the home insurance, as it provides repair or replacement on some appliances, HVAC components or electronics due to mechanical or electrical failure.
The basic policy covers physical damage or defacement of your home due to vandalism.
If your home is burglarized and your home suffers damage—for instance, your window is broken or your door jamb is broken — your policy will not only cover the loss of your personal or permanently attached items but also the damage left behind.
Because the home insurance addresses specialty areas of coverage, there’s little competition in the market, so there is little need to offer extras to try to woo consumers to American Modern. Most of the coverage options are presented above, and getting additional coverage involves upgrading to receive the protection usually offered on standard coverages.
Enhanced coverage is available for these additional causes of loss:
• Lockout assistance
• Power surge
• Falling objects
• Water discharge from plumbing, heating or cooling system
You can purchase upgraded coverage so that depreciation won’t be a factor in determining your settlement amounts.
Damage from water backing up into the home from a drain or sewer is not included in a standard policy, but this option will provide a level of protection against it.
Available Discounts on American Modern Home Insurance Coverage
American Modern offers discounts on some of their specialty lines, such as snowmobiles, watercraft and collector cars, but you won’t find any listed for homeowner insurance, not even the ubiquitous bundling, or multipolicy, discount.
How to Make a Home Insurance Claim with American Modern
To file a claim with American Modern, you can call, write, fax or go online. You can even report a claim through the mobile app. Whichever channel you choose, you’ll need to provide all of the pertinent information, such as name, policy number and details of the incident. You’ll be assigned an adjuster, who will follow up with you to collect more details and help you resolve the claim. If it turns out you’re entitled to a claim payment, the adjuster might be able to present you with a check right then and there.