For insurance brokers, a thorough knowledge and understanding of the insurance industry is par for the course. In an industry where digital transformation and customer-centric solutions are rapidly reshaping the competitive landscape, a broker’s ability to deliver exceptional service is even more essential.
Part of delivering exceptional service is knowing as much as possible about insurers. Understanding an individual insurer’s business model, product lineup, and operational strengths is crucial. Not only is this information necessary to assess an insurer’s competitive positioning but also to identify potential partnership opportunities and client fit.
This review of one home insurance provider – Homesite Insurance – can help brokers see if this insurer can be an option for clients who need what they offer. So, how good is Homesite's insurance rating? Find out in this in-depth review.
As of mid-2025, Homesite holds an A or Excellent financial strength rating from A.M. Best, along with a stable outlook on its financial future.
Meanwhile, its insurer credit rating is a+, which also denotes Excellent.
Homesite insurance ratings from A.M. Best show that this insurer has formidable balance sheet strength and operational performance, supported by a reinsurance agreement with American Family Insurance.
Homesite's insurance ratings aren't available from the three largest financial services ratings agencies – Fitch, Moody's, and S&P. However, American Family, its parent company scored the following:
AmFam also received an A rating from the specialist insurance rating agency A.M. Best. These scores indicate strong financial capability.
When it comes to knowing an insurance company’s ratings, A.M. Best, Fitch, Moody’s and S&P are the authorities. Be sure to check our guide on these agencies and the importance of their ratings.
Another popular and oft-consulted ratings company is J.D. Power, but this agency does not currently include Homesite in its latest customer satisfaction studies. Available customer service feedback, however, reveals mixed reviews with below industry average scores for the company.
Those wanting to procure Homesite home insurance won’t have to worry about availability; Homesite offers its home insurance in all 50 states and Washington, D.C.
With Homesite, you may customize your clients’ homeowners’ policy with different optional add-ons, but the following are the standard types of coverage:
Dwelling – pays to repair or rebuild a home’s structure
Other structures – take care of damage to structures that are not attached to the home, like fences or tool sheds
Personal property – pays to repair or replace damaged personal items like furniture or clothing
Personal liability – this covers any legal expenses and damages if the policyholder is found responsible for injuries to other people or their property
Loss of use – pays for hotel stays, restaurant meals, or other bills if the policyholder must find alternative accommodation while their home gets repairs for a covered event
Medical payments – provides cover for injuries of guests in the policyholder’s home, regardless of fault
Brokers may be able to add these types of coverage to a Homesite policy:
Additional belongings coverage – this expands on the personal property section of a Homesite insurance policy, including scenarios like spills and drops
Earthquake protection – covers damage from earthquakes; this can be essential for those who live in earthquake-prone areas, as most standard homeowners’ insurance policies do not cover earthquakes
Equipment breakdown coverage – should a major appliance or household system have a mechanical or electrical failure, this coverage can pay for their repairs or replacement
Extended dwelling coverage – if the policyholder’s home costs more to rebuild than expected due to factors like high demand or inflation, this coverage option adds a 25 percent or 50 percent cushion to the dwelling coverage limit. For example, if your client has dwelling cover worth $200,000, Homesite would pay an extra $50,000 to $100,000 if needed to rebuild their home, after they file a claim
Extra coverage for valuables – adding this coverage can ensure that your clients have peace of mind, knowing that their jewelry, musical instruments, and other expensive items are covered. They can be reimbursed for their full value if they are stolen or damaged
Identity theft coverage – this can pay legal fees and other expenses associated with recovering your client’s identity
Increased roof coverage – ensures that the policyholder gets enough cover to fully replace a damaged roof after a covered event (like hail or windstorm), minus their deductible, instead of a partial payout based on the age of the roof
Personal injury coverage – expands liability coverage to include libel, slander, and invasion of privacy claims
Service line coverage – this pays for damage to underground pipes, wires, or other lines that serve the policyholder’s home
Water backup coverage – pays for any damage resulting from a sewer line or drain that backs up, or an overflowing sump pump
Take note that Homesite's homeowners' insurance does not cover all types of risks. As with most other home insurance companies, Homesite does not cover:
As its name suggests, Homesite specializes in home insurance. However, the company also offers several other types of insurance. Below is a list of Homesite’s products and their average costs:
|
Homesite product |
Description |
Average annual cost |
|---|---|---|
|
Homeowners’ insurance |
This covers dwelling, personal property, liability, loss of use, and offers many endorsements like water backup, extended replacement cost, and identity theft protection |
About $2,341 for dwelling coverage worth $300,000 |
|
This covers renters’ personal possessions and provides liability protection; this also includes identity theft protection |
Around $295 for $15,000 in personal property coverage and $100,000 in liability coverage |
|
|
Condo insurance |
This covers personal items and interior unit damage not typically covered by the condo association master policy |
Around $500 for $50,000 personal property, $300,000 liability, with a $1,000 deductible |
|
This customizable auto coverage can be tailored to an individual driver’s needs. |
Around $1,300 to $1,500 for full coverage, but premiums can vary significantly based on a range of factors |
|
|
Flood insurance |
This is coverage against flood damage and is often excluded from standard home policies. |
Around $900 based on National Flood Insurance Program (NFIP) rates |
|
This covers property and liability risks for small businesses. |
Ranges from $680 to $1,120 and varies widely by state |
|
|
Covers unexpected veterinary bills for pets |
Around $300 to $600 |
|
|
Term life insurance |
These are simplified term life policies with various term lengths and limited customization |
Around $300 to $360 for a 20-year, $500,000 policy for a healthy, non-smoking 40-year-old |
The homeowners’ insurance average cost cited of $2341 per year is a national average for $300,000 dwelling coverage. This may vary significantly, depending on the home’s ZIP code, home characteristics, and underwriting factors.
As for Homesite’s condo, renters, auto, flood, small business, pet, and life insurance premiums, they can vary widely based on location, coverage, and risk factors. Average annual premiums specific to Homesite’s products are not publicly available.
Depending on the policyholder’s location, Homesite may provide these discounts on their homeowners’ insurance if:
The company offers plenty of standard policies and add-ons, but Homesite offers a couple of distinct products and services that your clients will find unique and beneficial:
Free wildfire protection in some states – The Wildfire Defense Systems included with some Homesite policies in certain wildfire-prone states can potentially save your client’s home. This is a welcome feature, since the incidence of wildfires has been rapidly increasing as of late
Online quotes – clients can go directly to Homesite online and use their easy online quote process, allowing them to customize their coverage in various ways
After checking reviews from dozens of sites, Homesite insurance ratings reveal some quirks like:
Low customer satisfaction – Homesite ranked the lowest in J.D. Power’s 2024 US Home Insurance Study
No mobile app – curiously, despite having an easily navigable and useful website, Homesite does not offer a mobile app, which could more easily enable policyholders to manage their coverage on-the-go
Founded in 1997 in Boston, Massachusetts, Homesite Insurance established itself as an innovator in the insurance industry. It holds the distinction of being among the first insurers to enable customers to purchase home insurance directly online, and with a single visit.
With this pioneering digital approach, Homesite set itself apart from other home insurance companies and helped shape the direct-to-consumer insurance model that is now commonplace.
In 2013, Homesite was acquired by the American Family Insurance Group, one of the largest mutual insurance groups and among the top home insurance providers in the US. This acquisition further strengthened Homesite’s insurance rating and financial backing.
Today, Homesite is licensed to operate in 44 states and the District of Columbia, with non-admitted status in three additional states. As of this writing, Homesite still specializes in P&C insurance, offering a wide range of products like homeowners, renters, condo, flood, auto, pet, and small business insurance.
Homesite is recognized for its strong emphasis on technology and a streamlined online customer experience. It’s also known for providing insurance quotes quickly, while offering customizable coverage and various discounts.
Knowing about an insurance company like Homesite’s financial strength can take more than simply looking up their ratings from the top insurance ratings agencies. Research has shown that Homesite Insurance uses these key financing strategies to ensure financial stability:
Homesite relies heavily on reinsurance, particularly through quote share agreements with affiliated companies. For instance, Homesite Insurance Company of New York cedes 80 percent of its business to Homesite Insurance Company of the Midwest.
Midwest then cedes a significant portion to the group parent company, American Family Insurance. This financing structure allows Homesite to effectively manage risk, stabilize its earnings, and optimize capital requirements without resorting to external debt assistance.
Homesite benefits from internal capital infusions and surplus contributions from its parent company when needed. The group’s consolidated financial strength and surplus are used to support the capital needs of all subsidiaries, including Homesite Insurance Group.
As with most insurers, Homesite invests its premium income in a diversified portfolio consisting of bonds, cash equivalents, and other assets. These investments generate returns, which support ongoing operations and claims obligations.
Homesite itself does not issue senior notes or other public debt instruments. However, parent company American Family has issued senior unsecured notes and other debt instruments at the holding company level to support group-wide capital needs. These funds may indirectly benefit Homesite via capital contributions or surplus support, but Homesite is not the direct issuer or obligor of such debt.
Homesite is a financially stable and capable insurer that can meet its financial obligations, including honoring claims. It also offers a wide range of customizable products, making it a viable choice for clients looking for affordable, digital-first insurance solutions.
However, its consistently low claims satisfaction scores and mixed customer reviews suggest potential customers who prioritize service and claims experience may want to look elsewhere. Brokers can still recommend Homesite, but only to price-sensitive and tech-oriented clients. Be sure to clearly communicate Homesite’s service limitations and encourage your clients to thoroughly understand and review coverage details and claims processes before deciding on Homesite.
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