Homeowners Insurance Ratings

By Compuquotes Team on October 16th, 2009

Homeowners Insurance

Comparing the ratings of homeowner's insurance companies can be a powerful way to protect your family's financial security.

Homeowners already know that homeowner's insurance is important protection for home and belongings. First-time home buyers should quickly learn about comparing necessary insurance policies and insurance rates. For consumers who are financing their property with a mortgage, homeowner's insurance is mandatory.

Annual Check-up

Many neglect to do an annual check-up on their homeowner's insurance, but it is advisable to evaluate your policy each year to make sure your coverage is adequate, particularly if you have remodeled or updated your home.

Cheapest Insurance not Always Best

When choosing an insurance company, realize that comparing insurance prices should not be the only consideration. The cheapest insurance policy may not supply sufficient coverage and it could indicate that the insurance company does not provide good service or is financially unstable.

Consumers can compare the ratings given to insurance companies online on a variety of Websites including each state's insurance board and on the J.D. Power and Associates site. The insurance company's history should also be checked to be sure it is prepared to pay any claims.

Check Insurance Company Ratings

Insurance company ratings are typically given for overall performance, policy offerings, pricing, billing and payment systems, the ease of contacting the company, and claims. Consumers should carefully compare the ratings for several potential insurance companies before choosing one.

In addition to Websites that rate homeowners insurance companies, others include consumer discussions about their experiences with various companies. While reading some consumer comments can be helpful, it is also important to realize that not all of these situations are relevant to your particular insurance needs. Some individual cases may be hard to evaluate without all the facts. However, if one insurance company is consistently criticized for poor customer service or difficulty in fulfilling claims, this should be an indication to avoid that company.
When you compare insurance company ratings, look in particular for companies that rate well for paying claims. After you have paid monthly premiums on time for years, and then have a pipe burst or a tree fall on your home, nothing can feel worse than having your insurance company deny the claim or be unable to pay it. The higher the rating, the more confidence you can have in your insurance company.

Consider Your Auto Insurance Company

Find out if your current auto insurance company also offers homeowner's insurance. Many companies provide multiple types of insurance and will offer a discount for consumers who have all their policies with one company. Be sure to check the ratings for this company, too, though, because you need to make sure you are working with a reputable company.

Make Sure You Have the Right Coverage

To be assured of having enough coverage to complete repairs or replace your home, insure the full replacement value of your home, not just the purchase price. Coverage which satisfies your mortgage lender may not be sufficient to meet your real needs.

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