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Tips to Compare Home Insurance Companies

Here are some search and shopping recommendations for finding an insurance company.

1. Check out how costly and which insurers are available in your state.

When it comes to insurance, the most important thing is to go with a reputable and creditworthy provider. The first step should be to check your state’s Department of Insurance website for each house insurance company licensed to operate in your state, as well as any consumer complaints filed against the firm. A typical average cost of home insurance in various locations and cities should also be available through the site.

2. Do a company health check

Lookup a home insurance company’s score on the websites of the top credit agencies (such as A.M. Best, Moody’s, J.D. Power, and Standard & Poor’s) and those of the National Association of Insurance Commissioners and Weiss Research to see if it will provide you with better service in other areas. These sites keep track of consumer complaints against firms as well as general client comments regarding claims processing and other information. These websites also compute a home insurance firm’s financial health to determine whether it has enough financial resources to pay out claims.

3. Look at claims response

Following a significant loss, the cost of paying for your home’s repairs and waiting for compensation from your insurance may put your family in a tough financial position. Insurers are outsourcing key functions such as claim processing to third parties.

Find out whether licensed adjusters or third-party call centres will be handling and receiving your claims calls before buying a policy. Look for a carrier with a proven track record of fair, prompt settlements, and make sure to understand your insurer’s position on holdback clauses, which is when an insurance company keeps back a portion of the payment until a homeowner can show that they began repairs.

4. Current Policyholder Satisfaction

The majority of firms will say they have a good claims service. However, cut through the jargon by asking your agent or a company representative about your insurer’s renewal rate, which is the proportion of policyholders who renew each year. Many businesses offer retention rates in the 80s and 90s. Annual reports, online reviews, and feedback from people you trust can all help you discover how happy you are with your insurance coverage.

5. Get Multiple Quotes

When it comes to any sort of insurance, obtaining several quotations is crucial; however, it’s especially essential when it comes to homeowner’s insurance since coverage demands can differ significantly. “Compare many firms to get the greatest overall results.”

How many quotes should you obtain? Five or so will provide you with a decent idea of what contractors are prepared to pay and how much leverage they have in negotiations. However, first, inquire about pricing from insurers with whom you already have a relationship. As previously mentioned, because you’re an existing client, a carrier who provides the same service as yours (for your car, boat, etc.) may often charge lower rates than other insurance providers.

Some businesses offer special discounts for seniors or people who work from home. The idea is that since both of these groups are more often on-premises, they are less prone to theft—leaving the house less frequently.

6. Look beyond the price

Despite this, you should look for the lowest yearly premium if you’re purchasing a house insurance plan. However, don’t just consider price when picking insurers. The policy forms and endorsements used by no two companies are identical, and the words used in the coverage may be quite distinct. Even though you think you’re comparing apples to apples, there’s usually more to it than that, so keep an eye on coverage amounts and restrictions.

7. Talk to a Real Person

Getting quotes is simplest if you go straight to the insurance companies or hire an independent agent who works with a variety of businesses rather than a typical “captive” insurance agent or financial adviser who just works for one, according to Stauffer. Keep in mind, though, that a broker authorized to sell for many firms frequently adds his or her own fees on top of policies and policy renewals. This may cost hundreds every year, he warns.

The FTC advises customers to ask questions that give them a clear understanding of their options: He adds, You should consider various deductible possibilities to see if it’s worth it to go for a higher deductible and self-insure.