American Family Insurance vs Farm Bureau Financial Services

Verdict

American Family Insurance and Farm Bureau Financial Services sell the same way: exclusive agents who represent one company, in the farm-and-hail belt of the Midwest and Mountain West. Both sit under a mutual holding company and carry an A (Excellent) from AM Best. The differences are scale and roof terms. American Family ranked #6 among U.S. homeowners groups by 2025 premiums ($9.72 billion, 5.14% of the market, per NAIC data) and sells American Family-branded policies in 19 states. Farm Bureau ranked #40 ($678.8 million, 0.36%) and writes in eight, though it was second-largest in Iowa behind State Farm.

The roof is where a hail-country buyer should spend the most time. American Family's roof coverage page says a roof is paid at actual cash value (depreciated value), with wind and hail replacement cost sold as an added coverage if the roof qualifies by age and type. Farm Bureau publishes a roof payment schedule: replacement cost on non-wood roofs up to 15 years old, with UL Class 3 or 4 impact-resistant roofs in the top payout tier. Since renewals from June 23, 2026 (July 23 in Iowa), a Roof Loyalty Benefit extends wind and hail replacement cost to roofs of any age after 10 consecutive years with the company. Wood roofs and policies with ACV roof settlement are excluded, and the schedule does not apply in New Mexico.

Financial strength is level on paper, though the paths differ. AM Best affirmed American Family at A (Excellent) on September 24, 2025 with a stable outlook. It affirmed Farm Bureau at A in September 2026 and moved the outlook to stable from negative, after 2024 hail and wildfire losses cut surplus by about 30% through mid-2024. American Family was not among J.D. Power's top three in 2025 or 2026; Farm Bureau has no ranking we found.

Choose American Family if

• You live in Colorado, Illinois, Wisconsin, Washington or another of its 19 states where Farm Bureau does not write homeowners.
• You want to bundle home and auto and use discounts such as early bird, smart home or the generational credit for adults 18 to 30.
• You want options like flash flood (Inland Flood endorsement, $25,000 to $100,000 limits, not an NFIP substitute) or Wildfire Defense Services, added at no charge in Arizona, Colorado, Nevada, Oregon and Washington.
• You are willing to add wind and hail replacement cost and confirm your roof qualifies.

Choose Farm Bureau Financial Services if

• You are in Arizona, Iowa, Kansas, Minnesota, Nebraska, New Mexico, South Dakota or Utah and want roof payment rules in writing before a storm.
• You own a farm, ranch or acreage, or want home, vehicles and farm property on one policy with a single deductible when one event hits several items on a Member's Choice policy.
• Your roof is non-wood and under 15 years old, is impact-resistant, or you have been with the company 10 years.
• You want guaranteed replacement cost up to 125% of the dwelling limit; read your state's terms, since it is "Modified" in five states.

Key differences

Before you decide

Both write in Arizona, Iowa, Kansas, Minnesota, Nebraska, South Dakota and Utah, so a homeowner there can get two exclusive-agent quotes. Ask each for the same Coverage A, wind and hail deductible and roof settlement basis, and have the agent write down how your roof's age and material are treated. Roof payment schedules and ACV roof endorsements explains how these schedules pay, captive agents, independent agents and direct insurers covers why an exclusive agent can quote only one company, and Farm Bureau home insurance: how membership works describes the Farm Bureau model. how to compare homeowners insurance quotes shows how to line up deductibles.