Compare home insurance companies

You should compare home insurance companies by looking at the coverage they provide, the cost of that coverage, and how they handle customer service and claims. Get quotes from several insurers, using the same coverage limits and deductible for each quote. This lets you compare similar policies instead of simply choosing the lowest-cost option. 

 It breaks down into a few basic steps.

Check customer reviews

Customer reviews give you insight into how an insurer handles customer service and claims, but you should look for patterns rather than rely on individual reviews. There are several ways to approach finding customer reviews of home insurance companies. Start by talking to people you know: family, friends, and co-workers are all good sources. 

“Look on the internet for service ratings and reliable claims payment practices,” Wells says. 

But remember that people often choose to write a review of a home insurance company only when they’ve had a bad experience and are angry. That can make it hard to get a balanced view of how an insurance company has performed, since happy customers often don’t feel the need to write a review.

Still, customer reviews are important and can help you to identify red flags, like repeated reports of the same issue.

Check with ratings agencies

Several well-respected agencies rate homeowners insurance companies, and they should be a part of your research into the company that will insure your home. The big three are J.D. Power, AM Best and the National Association of Insurance Commissioners (NAIC).

J.D. Power releases two homeowners insurance surveys each year, both of which ask real homeowners to rate their insurers. One is an overall satisfaction survey, and the other is focused on claims satisfaction. J.D. Power generally only rates the biggest insurance companies but is a trusted source.

AM Best rates insurance companies on financial stability. 

“The absolute worst thing is to get an insurer that is financially unstable,” Wells says. A quick look at an insurance company’s AM Best score can tell you whether you should have any concerns about the company’s ability to pay claims or its likelihood of becoming insolvent.

“If an insurer is not rated by AM Best, I’m very leery because virtually every insurer is rated by them,” says Wells.

The NAIC gathers customer complaint information about home insurance companies and gives them a score based on whether they have more or fewer complaints than the industry average. A complaint ratio well above average may be a cause for concern. 

These sources address different questions, so use them together rather than relying on a single rating or score. 

Compare coverage offerings

Compare the coverage each company provides with what you need for your home and belongings. Homeowners insurance generally includes dwelling, other structures, personal property, loss of use, and liability coverage, but coverage limits, exclusions, deductibles, and optional endorsements vary by insurer.

For each quote, check the:

  • Dwelling coverage limit
  • Other structures coverage
  • Personal property coverage
  • Loss of use coverage
  • Personal liability limit
  • Medical payments coverage
  • Deductible
  • Additional endorsements
  • Special limits and exclusions

Pay particular attention to how each policy covers the cost of rebuilding your home. Some insurers include extended replacement cost coverage, while others offer it as an optional endorsement. 

Compare home insurance rates and discounts

Compare the cost of each home insurance policy after making sure the quotes provide the coverage you need. The lowest-cost policy is not necessarily the best value if it has lower coverage limits or a higher deductible. Also, compare discounts because they can lower your final cost and make one insurer less expensive than another. 

Rates are an important part of the picture when choosing a home insurance company, and when you’re on a budget, it can be tempting to go with the cheapest option. But Wells warns insurance shoppers to be cautious.

“You usually get what you pay for, so if the coverage is super cheap, be careful,” she says.

Discounts can bring your home insurance rates down significantly, and even a company with a higher base rate might wind up being cheaper once discounts are applied. Don’t be afraid to ask the company how to qualify for more home insurance discounts.

Things to consider when comparing home insurance companies

You should consider each company's coverage, cost, customer service, claims experience, and financial strength before choosing a policy. Comparing these factors helps you understand what you are getting for your money and gives you a better basis for comparing insurers. 

For each of the home insurance companies you’re considering, ask and answer the following:

  • Does this company offer the coverage and policy I need for my home?
  • Does the insurance company allow me to handle my policy the way I prefer to do so, such as working with an agent, online or via a mobile app?
  • When I call this insurance company, how long does it take to get a person on the phone to help me?
  • How are the insurance company’s financial ratings and other third-party ratings?
  • How do the home insurance rates compare to other companies for the same coverage?
  • Are there any red flags in this company’s reputation that make you hesitate?
  • Can you bundle home and auto, and if so, how much is the discount?
  • What other discounts are available?

Make sure you’ve compared several home insurance companies on these points before you make a decision. 

Which homeowners insurance companies should you compare?

Compare at least three home insurance companies, including large national insurers and smaller regional companies that serve your area. Getting several quotes gives you a better idea of the cost of the coverage you need and helps you see how insurers differ in coverage, discounts, and service. 

You can narrow them down using the steps above, removing any that don’t make the grade for financial stability and customer service, before comparing prices.

A good place to start your list of insurance companies to compare is our best insurance companies list. It consists of the best major insurance companies in the U.S. Then, do a little research on the smaller companies operating in your area and compare a few of those as well. Sometimes a smaller company can offer great prices and personal service, so don’t count them out. And remember – the cheapest insurance company isn’t always the best.

While it’s a lot of work to compare home insurance companies carefully, the end result is a policy with a company you can rely on when you need it.

FAQ: Home insurance comparison.

Should all home insurance quotes have the same coverage?

Yes. You should use the same coverage limits and deductible when requesting quotes from different insurers. This gives you a more accurate comparison because you are looking at the cost of similar protection rather than comparing different levels of coverage.

Check the insurance company's AM Best financial strength rating. AM Best evaluates an insurer's financial strength and ability to meet its ongoing insurance obligations. Check the rating for the specific insurer that issues your policy, as an insurance group might operate through several companies.

You can review complaint information through the National Association of Insurance Commissioners (NAIC). The information helps you compare an insurer's complaints with those of other companies in the market.

Yes. Home insurance discounts can lower your premium, although savings vary by insurer and policyholder. Common discounts include home and auto bundling, security systems, newer roofs, and claims-free histories. 

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