5 Tips for Choosing the Right Home Insurance Companies for You


Did you know that it's more expensive not to have homeowners insurance than to have it?

Homeowners insurance isn't on most people's minds until they experience damages, a disaster, or someone gets injured on their property. Only about 85% of homeowners have insured their homes, and even more of these don't have comprehensive insurance.

Homeowners insurance is not a luxury but a necessity. The real trick is in finding the right home insurance company. With the US homeowner's market valued at a whopping $105 billion, there are numerous home insurance companies out there. So, how do you find the right company?

In this guide, we'll explore all the factors you need to consider when choosing a home insurance company. Keep reading to find out exactly what you should be looking for.

Does the Insurance Company Pay Out Claims?

This is hands down one of the most important questions you have to ask when choosing a home insurance company. Insurance companies usually set an insurance rate based on the risk a homeowner poses. You pay that rate on a regular basis, and in exchange, they promised to cover your losses in case anything covered on your policy happens.

Surprisingly, some home insurance companies out there are not always willing to pay out the insurance claim. They send insurance adjusters who find caveats and excuses that ensure the company doesn't pay. If they do, they could take longer than necessary to pay or pay as little as possible, which may not be enough to cover all damages.

Some insurance companies police payments with zero tolerance and tend to cancel policies the first time homeowners fall behind. However, they become less rigorous when it comes to making payments in return. One consistency issue a lot of homeowners have had to deal with is rejected claims.

Some of these companies go out of their ways to frustrate customers in order to avoid paying claims. For this reason, it's important for you to do thorough research when scrutinizing an insurance company. You have to check their reputation and if they settle claims on time and in full to prevent running into problems in the future.

#1 What's Their Financial Strength?

Financial strength is by far one of the most vital considerations you have to make. The financial stability of a home insurance company shows how well it performs in large markets. It's the financial stability that will tell you whether you can actually depend on them to pay out claims in the future.

A home insurance company needs to have assets to be able to pay out claims. Check out best, which is a good source for this kind of research. They give insurance companies financial strength ratings, and you can check whether your insurance company of choice is listed.

There may be insurance companies that choose not to pay out insurance claims, but this is different from those who don't have the capacity to do so. This is especially true for local companies who may not have money on hand when you need it the most.

Check the biggest claims the company has paid out and whether there were any issues acquiring finances before you commit yourself.

#2 What Do Customer Reviews Say?

In the age of information, customer reviews are very similar to recommendations. They give you an insight into what to expect from the company and whether you should give them a chance.

When it comes to reviews, usually, the ratings are based on a single factor. However, there are so many aspects of the company to consider, so keep the source of the rating in mind.

To start with, understand what the customers refer to when they give a good or poor review. Did they have trouble with the claim, the customer service, the payment, or the overall company? Depending on the size of the company, it's advisable to read local reviews and get a feel of the local office you'll be dealing with.

#3 How Good Are Their Rankings?

If you want to know how good a home insurance company is, you need to compare it with several other companies. The best place to start is to check out general industry rankings and consumer reports.

You could even look at surveys and see whether the company will meet your needs. Most of these rankings and reports compare companies side-by-side based on given criteria.

#4 What Deals and Discounts Do They Offer?

Some home insurance companies offer flexible payment plans and give deals and discounts depending on how policies are bundled. When shopping for the best home insurance company, ensure you inquire how they accept payments. It may be possible to get a discount if you set up automatic withdrawals or pay a hefty amount upfront.

You may also get a good deal if you get multiple policies with the same insurance company. You could bundle up your home insurance policy with auto insurance. You may also get good deals if you install safety and security devices to protect your home and avoid claims for several consecutive years.

#5 What's Their Price and Coverage?

Last but not least, you have to consider how much you will pay and what you will get for it. It's important for you to shop very carefully when it comes to prices and get a home insurance quote from several companies. You see, every insurance company evaluates risks differently, so it's advisable not to assume anything.

Different companies will offer different covers for different prices. You may have to pay different amounts out-of-pocket based on your personal circumstances and whether you get hazard insurance.

While some homeowners may feel like home insurance is not mandatory, it goes a long way, so make sure you get the right deal.

Searching for the Best Home Insurance Companies

If you're currently in the market for homeowners insurance, these are some of the most important things to look for in-home insurance companies. Scrutinize every aspect and ask as many questions as you need until you feel comfortable. Compare several companies to make sure you're getting the best deal in the market that covers all your needs.

Beyond that, if you're currently looking for an insurance company, please give us a call. We have great house insurance policies, and we can discuss your needs together.

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