Homeowner Insurance Company

What is the best way to choose a homeowner insurance company? If you’re just now buying your first home, that can be a difficult decision. It’s funny how you can cruise through life, never worrying about a particular topic, and then suddenly find yourself faced with making a major decision on a deadline. That’s how it is for most people when it comes to buying homeowner insurance for the first time. They know they have to have it, and they know it’s a big decision, but that’s about the extent of their knowledge. When it comes to actually choosing a homeowner insurance company, they haven’t got a clue.

If that describes you, relax. Here are some tips for choosing a company to insure your home. First off, you’ll want to know how reliable and stable they are. Insurance companies can and do get in over their head, as the AIG scandal has shown us. So check them out first.

Every state has a regulatory department that oversees companies that insure homes. Check with them to make sure the company is trustworthy. That’s the basic check.

But just because a company is listed by the state and approved to sell insurance, it doesn’t mean that they’re on solid financial ground. Most states don’t have the manpower or the expertise to keep an eagle eye on the underly financial strength of insurance companies. But there are actually several private companies who do that very thing. One of the best known is AM Best, and you can often find their ratings in your local library. Other homeowner insurance rating services include Moody’s, Duff and Phelps, and Standard and Poor’s. These too can sometimes be found in your library, but less often. Another trusted firm is Weiss Research out of Florida.

They’ll charge you for a report, but it’s an excellent investment when choosing a homeowner insurance company.