What to Look for in the Best Home Insurance Companies

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Homeowners insurance is the most effective way to protect your home and the assets within it. Given that your home is probably the most expensive investment you will ever make, it is essential to get the best level of protection possible. Unfortunately, not all homeowner's insurance companies are equal and the reliability varies widely. Knowing the best home insurance companies and what to look for to determine a company’s sustainability are helpful ways to ensure that your home will actually be protected in the event you need to file a claim.



The Top Home Insurance Companies

Homeowner's insurance companies perform differently. Some companies certainly stand out much more than others do in terms of quality, efficiency, and overall customer satisfaction. The best home insurance companies score highly across multiple categories year after year and continue to prove their financial stability.

According to Consumer Affairs, StateFarm is known for being one of the best home insurance companies. StateFarm was founded in 1922 and is currently headquartered in Illinois. It is a large company that is well known across the nation and in Canada. StateFarm has proven itself to be one of the most financially stable companies in the industry. This provides insureds the reassurance they need to know that if they file a claim, StateFarm can cover easily cover it. The company’s financial stability is impressive and continues to improve over time. One area StateFarm can work on is in customer service.

Another highly ranked insurance company is Allstate. Founded in 1931 with headquarters in Illinois, Allstate is one of the largest insurance companies in the industry. While they are also well known for their other insurance products, they rank very highly with their home insurance policies. They are particularly known for being easily accessible and convenient for customers and offering rewards programs that help customers save money. Given how large Allstate is, their level of customer service is not as great as other companies' levels. Nonetheless, for convenience and accessibility, they top the ranks.

Farmers is also a top ranked company. Originally created in Los Angeles in the early 1900s, Farmers is well known for providing excellent customer service, serving a broad range of areas, and offering good discounts. While they are more expensive than other companies are, the high-quality customer service is worth the price.

There are many other top insurance companies including American Family Insurance, AAA, Nationwide, and Travelers. Consumers can benefit from the competition among insurance companies. The more companies, the lower the prices are for the industry overall. In order to determine which company is best for you, it is helpful to look at specific rating categories.


The Top Home Insurance Companies



Financial Stability

Many homeowners solely look at premiums to decide which insurance company to choose. However, that is not the only important factor to consider. One of the most overlooked factors is the financial stability of the company. An insurance company’s financial stability is informative and helps insureds know whether or not their claims will be paid. An insurance company with poor financial stability is at high risk of not being able to pay for claims. They are also at risk of going under as a company.

On the other hand, the best home insurance companies have a stable financial history. They have shown over the years that they can easily pay for claims while also being able to afford the overhead of running the company. StateFarm has said that they could easily pay for all of their insureds if every one of them filed a claim. Financially stable companies like StateFarm provide peace of mind for their customers. The result of insuring with a financially stable company may be that their rates are more expensive. However, the reassurance may be worth the price.



Customer Service and Satisfaction

The internet is a helpful platform that allows potential customers to easily look up ratings and overall satisfaction scores. Consumers can quickly research thousands of reviews and complaints. There is nothing like hearing from current or previous customers because they tend to provide specific details into particular unresolved problems or services that they appreciated. One caution about online ratings is that they may be skewed. Typically, people do not take the time to rate their insurance company unless they’re really upset or quite thrilled about them. Either way, the sample may be biased.

One way to prevent major bias is to inquire from the insurance company directly. The best home insurance companies value customer service. Thus, they keep track of ratings using metrics and statistics. They will proudly share their rankings if asked and they are continuously using those ratings to improve their service and overall customer satisfaction.


Customer Service and Satisfaction



Claim Handling

Potential buyers often forget to look up how well insurance companies handle their claims prior to purchasing their policy. Claim handling is really important as it dictates how smoothly the entire process goes. Filing a claim is frustrating in and of itself; therefore, it’s helpful to know which companies do a great job of quickly and efficiently handling claims. This is one point you don’t want to overlook as it may come in handy later.



Discounts and Rewards

Insurance companies have many opportunities to provide discounts and rewards to their valued customers. Whether it’s from bundling a homeowners’ policy with auto insurance or for having a newer house, discounts and rewards are common. While the rates may vary across companies, most agencies provide substantial discounts and rewards to show how much they appreciate policyholders for choosing them. With an abundance of companies, agencies know the importance of giving back to their consumers because it’s so easy to switch to another company.

Overall, the best home insurance companies rank well in price, discounts and rewards, claim handling, quality customer service, and financial stability. You deserve the best when protecting your home and with the internet right at your fingertips, there’s no reason you can’t find the superior insurance company that will meet your needs.