American Modern

Editor's Rating

American Modern Insurance is a specialty insurance company, offering insurance to homeowners who can't find adequate coverage from mainstream insurers. Home insurance shoppers are very unlikely to find the lowest premiums for insurance at American Modern. The company has subpar customer service reviews overall, but it still performs ahead of some other specialty insurers.

Good for
  • People who live in old, historic or low-value homes
  • Residents of coastal areas
  • Owners of rental properties
Bad for
  • People who can get affordable coverage elsewhere
  • Homeowners in New York or Florida

American Modern homeowners insurance: Our thoughts

American Modern home insurance is a niche product by nature. Rather than providing insurance applicable to the broadest category of homeowners at the lowest possible rates, American Modern offers what's often referred to as "specialty insurance." Specialty insurance is for people who can't get insurance from mainstream insurers because the rates quoted are too high, normal insurers won't provide the type of coverage the homeowner needs or the insurance company simply refuses to take them on as a customer.

Who needs specialty home insurance?

There are a number of reasons your home might not qualify for insurance from other companies. It might be because your home is in a high-risk location, like on a coast; because it's very old, historic or just low-value; or because you made a high number of insurance claims in the recent past.

When comparing it to more mainstream home insurance companies, it can be helpful to think of American Modern as similar to an auto body shop that specializes in exotic cars. While the shop will likely be able to fix a mass-market sedan, it is liable to charge you much higher rates than you can find elsewhere. But if you have an unusual car, it's worth paying extra for the service that matches your needs.

Similarly, the premiums for American Modern Insurance are very high compared to typical insurance companies, and if you can get the right coverage from another insurer, you will probably save money by doing so. But if you have insurance needs that a normal insurance company won't cover, such as a historic home or a pet that's been deemed dangerous, American Modern could be your best option.

Insurance companies that specialize in high-risk homes sometimes have a reputation for poor customer service. American Modern's customer service ratings, while poor, are not as bad as those of some other specialty insurers. While it doesn't have industry-leading service, it has customer service that might meet expectations.

A drawback to considering American Modern home insurance is that quotes are not available online. While the company does provide an online quote request form to minimize the difficulty of receiving a quote, you'll still have to wait for an agent to contact you to find out your rates. And homeowners in Florida and New York will have to try other insurers, as American Modern does not provide insurance in those states.

Also, unlike many insurance companies, American Modern Insurance Group doesn't offer any discounts to its customers, such as for bundling multiple policies, paying in advance or signing up early. So there is little opportunity to mitigate the company's high rates with a discount or price cut.

Bottom line: For people with specialized homeowners insurance needs, American Modern's excellent financial ratings, and customer service ratings that beat some competitors, make it a good choice. But anyone who can get coverage from a standard insurer should look elsewhere.

American Modern homeowners insurance quote comparison

American Modern has mediocre prices for homeowners insurance. Its rates are very close to average at three different coverage price points.

Surprisingly, another company that focuses on specialty home insurance, Foremost Insurance, was American Modern's strongest competition when it came to price. It offered us sample home insurance rates of just $690 per year for $150,000 of dwelling coverage.

American Modern usually had better rates for our sample homeowner than two major insurers, State Farm and Travelers.

Bar chart comparing American Modern's price for home insurance with competitors.

Find Cheap Homeowners Insurance Quotes in Your Area

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Dwelling limit
American Modern$1,214$1,739$2,203
State Farm$1,398$1,853$2,154

American Modern homeowners insurance coverage options

American Modern's base homeowners insurance coverage is more limited than what is considered a standard homeowners insurance policy (HO-3). It only covers named perils for your home and your personal property — this level is often called HO-2 coverage.

Additionally, the structure of your home and the items in it are only covered up to their actual cash value (ACV). For example, if a set of golf clubs originally valued at $500 is destroyed in a fire, but it has depreciated to be worth only $250 at the time of the fire, American Modern would pay you $250 to replace it.

However, residents of some states have the option to extend coverage to cover open perils (HO-3), meaning that you're protected against everything except specific exclusions, such as earthquakes and floods. Customers may also choose to include replacement cost value (RCV) coverage. In the golf club example above, you'd receive $500, enough to buy a set of brand-new clubs.

Other specialty home coverages from American Modern

American Modern offers several different types of specialty home coverage for properties that aren't usually covered under typical homeowners insurance because they are susceptible to different risks than typical homes. For example, a vacation home that is unoccupied for much of the year is less likely to have a cooking fire but may sustain more damage in a storm because no one was there to board up the windows. American Modern offers the following special types of property insurance coverage:

  • Vacation home insurance: Coverage is available for high-end vacation homes, which are often insured to the same limits as regular full-time homes due to their high value; as well as for more rustic cabins and cottages, which typically carry lower levels of coverage.
  • Mobile and manufactured home insurance: American Modern provides coverage for manufactured homes, which are not eligible for coverage under most standard homeowners insurance policies.
  • Landlord insurance: This coverage is for people who own a multiunit building and rent it out to others.
  • Vacant property insurance: American Modern's vacant property insurance protects a home you own that is unoccupied for a long period of time, such as a house undergoing renovations or a house that is vacant while it is for sale.

American Modern also offers a range of other insurance products, including exotic car insurance, pet insurance, snowmobile insurance and boat insurance, among others.

American Modern Insurance requirements

As American Modern often deals with customers who are disqualified from getting homeowners insurance elsewhere, the company has specific minimum requirements for homes it will insure. Its standard homeowners policy requires that your home be a single- or two-family building, in average or better condition and regularly maintained. However, there is no home age limit, so owners of older homes will likely be able to get coverage.

American Modern customer service ratings and reviews

Overall, American Modern has negative reviews for its customer service. The company has a rating from the National Association of Insurance Commissioners (NAIC) of 3.47, meaning that it received many more complaints than expected for its size. The most common issue cited in customer complaints was delays in processing and paying out claims.

American Modern Insurance has excellent financial ratings. It received an A+ rating from AM Best, meaning that the company has very strong financial practices and that customers should not be concerned about the company's ability to pay out future claims.


ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

To determine sample home insurance rates for American Modern and competitors, we gathered statewide average quotes for insurance in Montana at three levels of dwelling coverage: $150,000, $229,000 (the state average home value) and $300,000. Each sample policy included limits for personal property coverage at 50% of dwelling coverage, and additional living expenses at 10%.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.