Homeowners Property Damage

For specific questions related to your claim, please contact your adjuster or our Catastrophe Claim Service Center at 1-866-881-4318.


What is replacement cost?

Replacement cost is the cost to repair or replace the damaged item with an item of like kind and quality, without deduction for depreciation.

What is actual cash value?
Actual cash value is based on the cost to repair or replace the damaged item with an item of like kind and quality, less depreciation.

How is depreciation calculated?

The most common method of calculating depreciation is based on the life expectancy of the item, with adjustments made for the item’s age and condition.

For example, the normal life expectancy of a composition roof is 20 years. Under normal conditions, the roof depreciates at a rate of 5 percent per year. If the roof is eight years old with typical wear and tear, the depreciated amount is 40 percent. (5 percent x 8 years = 40 percent.) The actual cash value of the roof is 60 percent of the replacement cost. (100 percent - 40 percent = 60 percent.)

How am I reimbursed?
Your homeowners policy may have replacement cost coverage on the structure. If it does, full reimbursement for replacement costs may take place in the form of two or more payments. You receive an initial payment from the adjuster with the estimate. This initial payment is for the full cost or for the actual cash value of the repair. If the payment is for actual cash value, an "amount deferred" is listed on the claim settlement report. This amount can be claimed upon completion of the work.

How do I apply for the amount deferred?

To receive the deferred repair amount (or recoverable depreciation), submit itemized receipts for the completed repairs or replacement. American Family Insurance pays the deferred amount or the difference between the initial payment and the completed repair bill, whichever is less. Please write your claim number on all pages of the itemized invoice or receipts and submit a final itemized repair invoice or receipts to:

American Family Insurance Group
Catastrophe Claims Service Center
P.O. Box 9436
Minneapolis MN 55440-9436
Phone: 1-866-881-4318
Fax: 1-866-774-4561

Are there deadlines I must meet to receive the deferred payment?

Your adjuster can assist you with information regarding repair or replacement deadlines and requirements in your local area. Normally, you have one year from the date of loss to complete the required repairs and submit your itemized repair receipts to us for our review and further payment consideration.

What advice do you have for locating a reliable contractor?

It is your responsibility to select a contractor and arrange for repairs. However, your adjuster may be able to help you locate a competent contractor to do the work for the estimated amount. If your contractor questions the estimated repair cost or scope, contact your American Family Insurance adjuster to reach a repair agreement prior to undertaking the repair work.

It is usually best to select a repair service that has operated in the area for several years, is insured and bonded, and is willing to give you a written guarantee.

Why is my mortgage holder listed on the payment?

Your insurance policy requires that any lien holder (if applicable) be listed on the payment as a payee. If requested, please help the contractor get the payment endorsed by the lien holder. Our failure to name the lien holder on the payment could result in legal action against American Family Insurance.


Please contact our 24-hour Claims Customer Care Center at 1-800-MYAMFAM (1-800-692-6326) if you need to file a claim.

You can also use our online claim form.

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