your advice for choosing a home insurance?

[Briden]

We are in the midst of closing on a house.. We have gotten several home insurance quotes.... Both including our autos and without...  My question is .. how do you choose a company to go with? Here's our scenario:

Company A: Highly recommeded... JDPower high marks -top insurer...

with both insurances 2300

Company B- Ok / popular company/ reviews online sound ok- seem not as well liked as company A/ JD Power- ok scores

2100 with both- save 200

Company C- Not a popular company/ seems more local/ no reviews online...

1700 with both- save 600 (from company A) or 400 (from company B)

Which would you go with?  WHat factors do you consider? Reputable reviews? company reviews like JD Power? prices alone?  etc

[c82wright]

I learned from talking with my insurance agent a few weeks ago, that you want the best coverage possible. There are four types of standard coverages. The names may vary in your state but the names are:

HO1 – Basic Form Homeowner Policy

HO2 – Broad Form Homeowner Policy

HO3 – Special Form Homeowner Policy

HO5 - Premier Homeowner Policy

You can do a search to see what named and unnamed perils are covered. Check with your state's department of insurance to compare the coverages of policies that you got quotes on. Also, consider your deductible. Just based on what you put in your OP, I wouldn't be able to decide from that info. Hope this helps! and congratulations!

[Briden]

Thanks. They are all the same standard coverage/deductible/what items they cover/do not cover.  I am more curious as to what others use for factors when choosing a company? We are not sure what weight to contribute to the price and what weight to contribute to the reputation/reviews of each company when choosing a company for the insurance.  Would you go with a more expensive policy but with awesome reviews ?

[kimmiller112]

Insurance companies are rated by two different companies, one of them A.M. Best, which uses the company's financial strength (financial ability to fulfil policy obligations), the company's credit rating (their abiliby to pay their on going financial obligations) and the company's debt rating (how the company pays for the debt they incur).   Using State Farm as an example, they are rated A++ which is the best rating posible.  So one thing you might want to do is to see how all three of the ones you are considering are rated.  So if one is an A+ (superior), one is an A (excellent) and one is a B- (fair), you may want to eliminate the lowest one.  Stay away from C or lower ratings.  For another example, Allstate has a AM Best rating of A+ (superior) .  Standard and Poor's also uses insurance rating but I'm not quite a familiar with their system, but for the State Farm example, they are rated AA, which is very strong and Allstate is rated AA-, which is very strong.  Farmers is rated A (excellent) and AA- (very strong).  Just do a web search for the company:   XYZ insurance rating and you'll be able to find the rating for each of the companies you are considering.

Ideally, you want to go with a company that has any form of an A rating.  

You mentioned a company having some reviews - what kind of reviews were they?  Did they mention slow payments on claims or people not returning calls or where they things like I got my check fast.  Weigh those kind of things in too  

Sometimes going with a small local company is good.  But keep in mind that they may or may not have a 24-hours claims service available, so make sure that they are there to help you in your times of need.   Small companies tend to have great customer service, especially if they have a 24-hours claim service.  They often have lower rates because the want the local business to stay local and not move to national companies.

Good luck in your search.  I hope this info helps you out.  Several years ago, I was in the insurance business (just in case you couldn't tell).

[foofighter74]

Yeah, any of the big insurance companies are probably your safest bet.  Our cars are insured through State Farm, and the Homeowners insurance rate they gave us was excellent. So that's who we went with. Easy decision.

Our lender flat out told us do not go with Geico, or any other cut-rate insurance company.  Just don't do it. lol

[Genkeim]

Our LO also told us to stay away from GEICO and Progressive. We went with State Farm, best rate and coverage.

[FLAJenn]

I'm in the same dilemma. I'm in Florida where it's ridiculous trying to get home owners insurance. A lot of the big companies don't even write policies here anymore.  I have a few more months though before I have to get anything. Probably gonna meet with an independent agent to see what is available to us.

[amtrucker22]

FLAJenn, you might want to try FL Farm Bureau.  They have great rates and customer service, but they don't write policies in all areas.  You have to be a member which is $40 a year.  I have my car insurance with them right now and my house closes at the end of next month which they will then have my home owners insurance.

[FLAJenn]

Sweet, I'll check them out, thanks!

[JAM2013]

FLAJenn have you tried Tower Hill?  We just went with them because the quote was really good and my insurance agent recommended them.  Apparenlty since we don't have a fire department within a 5 mile radius from our house, there are some companies that wouldn't even consider writing a policy on our house.