Do Your Homework Before You Choose a Home Insurance Company

Your home will likely be the biggest investment of your life. You need to protect it by choosing a good company to provide homeowner’s insurance.

Do not just go with the cheapest insurer because you will probably not get all the coverage you need. Do some homework to determine what your needs are in terms of homeowner’s insurance. For instance, if you live in an area with earthquakes, you need a company that offers earthquake insurance. The same goes for other natural disasters.

Decide whether you want just the home to be covered or if you want certain items in the home to be replaced if necessary. Once you know what you need in regards to coverage, start researching to see what company can provide the best service.

Look for insurance companies that are stable. Newer companies may not be around long in this economy. They may close, leaving you without coverage. Check the companies’ financial stability. If a company is not in good financial shape, it may be unable to pay you if you file a claim.

There are web sites that provide ratings for different insurance companies. You can go to the National Association of Insurance Commissioners site to find useful information about companies’ financial status and stability. The web sites for Standard and Poor’s, Moody’s Investors Services and A.M. Best also provide ratings of insurance companies that can be helpful. Review their information carefully before selecting an insurance company.

Find out about companies’ customer service habits. You should have a company that is responsive to your needs. There should be a representative available when you need to speak with someone. The representative should be knowledgeable and able to answer your questions in a way that is easy for you to understand. An insurance company would be little use to you if they cannot provide good information or assistance when you need something. Look online to see if there are complaints about poor customer service for companies you are considering.

Go to insurance companies’ web sites and get quotes. Be sure to note what the insurance will cover. A company may offer a lower rate because it does not provide important coverage you need. Pay attention to the deductible amounts for each quote.

Your friends, family members and coworkers are valuable resources. Talk with them about their experiences with their insurance companies. They can tell you about companies’ customer service, reliability and payment of claims.

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