American Family is seeking approval to move Tennessee homeowners and renters policies from Homesite Insurance Company of the Midwest to Homesite Insurance Company beginning with renewals on January 1, 2027.
All affected policyholders will receive a replacement offer without being re-underwritten. Their existing policies will be nonrenewed as the legacy products are retired, but customers can maintain continuous coverage by accepting and paying for the replacement policy.
Homeowners premium increases will be capped at 25% during the conversion term, with additional rate stabilization planned over three policy terms. Renters policies will not be capped: 1,103 of the 1,698 policyholders are expected to see increases exceeding 25%, with an average increase of $77.
Replacement policies may also feature different deductibles, terms and coverage. The company’s comparison materials flag potential changes to roof-loss settlement, cosmetic hail coverage and personal property limits, while increasing loss-of-use coverage from 20% to 30%.
American Family said the transfer is intended to retire older systems and move customers onto a platform that can be updated more easily. No underwriting companies will be closed and no licenses will be surrendered as part of the transition.
