How to Choose the Right Home Insurance Company

Whether you are making an insurance purchase for your home for the first time, or if you are switching from your current insurance carrier to a new one, there are several ways to ensure that you are not only obtaining the proper coverage, but also choosing the best possible insurance company.

New Home Owners

If you are a new homeowner, a great start in your quest for insurance coverage would be to speak to your family and friends and identify the name of a reputable insurance agent that serves the area where your home is.

You can also conduct research online to locate a local insurance agent. There are several resources available online however be aware that many websites are simply paid advertisements for insurance companies. These are paid commercial advertisements are similar to those you may see on television. You should also beware of the information contained in blogs related to insurance companies. Remember that people typically have a lot to say when they complain about a product or service however when they are happy with a product or service they rarely speak about it. Accordingly, you will find that there is an overabundance of information available on blogs relating to poor service and bad experiences with several insurance companies. These horrible stories are unchecked and lack any fact checking before their being posted on the blog. For this reason information found on blogs should be taken with a grain of salt.

When researching insurance companies, consider the age of the insurance company. New companies may have some advantages and disadvantages. New companies may have a user friendly web site with good customer services features however they may lack experience and the financial stability of an older company. Insurance companies that have been around for a very long time tend to be stable and less likely to succumb to financial failure.

The best way to evaluate the quality of an insurance company is to review their rating on a bureau such as A.M. Best. Once you have settled on two or three insurance companies be sure to check out their websites. They will often display their A.M. Best rating directly on the website. You will want to find one that has an AA+ or an AAA+ rating.

Existing Homeowners

If you have been a homeowner for some period, all of the above should apply to you in your search for a new insurance company. The main difference between the new homeowner and an existing homeowner in terms of shopping for insurance and evaluating insurance companies is the fact that an existing homeowner may likely have more experience in dealing with an insurance company both in terms of general customer service and in terms of the claims process. If you have had a claim with your current insurance carrier, recall how the claim went and how satisfied you were with the customer service. Use this as a guide to ask questions relating to your potential new insurance company.

Your final decision can also governed by the type of agent you choose. There are two types of insurance agents in the industry. The first type of agent is called a captive agent. A captive agent is actually an employee of an insurance company. An agent of this type will be most familiar with their company's products and services. An agent of this type may also be able to tailor a policy to better suit your needs.

An alternative to a captive agent is an independent agent. Independent agents work for themselves and represent several insurance companies. The advantage to using an independent agent is that they have access to several different insurance companies that sell several different products. If you are insured with an independent agent you may be able to find that an insurance company can be chosen for your home and then another company can be chosen for your automobile and possibly a third insurance company for a small business venture. This often cannot be done with a captive agent who may be limited in only one line of insurance such as personal lines only.

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