The Best Homeowners Insurance Companies for 2021
Comparing Home Insurance
Step 1: How much coverage do you need?
The cost of home insurance largely depends on the amount of coverage you are paying for. Typically, the more coverage you have, the more it costs. It’s important that you determine the amount of coverage you want your home insurance to have. One of the most important factors in determining the coverage you need is the price of rebuilding your house in the event of severe property damage.
You should also consider the amount of out-of-pocket costs, or deductible, that comes with your insurance plan. Additionally, evaluate if you will need additional coverage for valuable items, such as jewelry and other personal objects. Depending on the region you live in, you may want to consider coverage upgrades for floods, earthquakes, hurricanes, or other natural disasters that your region is prone to experience.
Step 2: Get some quotes
After you have a clear idea of the kinds of coverage you’re seeking, contact home insurance companies for quotes. You’ll want to receive a quote from at least three different companies to ensure you are getting the best price for the amount of coverage you want.
It’s important to get multiple quotes because each insurance company uses its own formula to calculate the cost of its coverage. There is a chance that one company’s formula will result in a higher cost of coverage than you would get with another insurance company.
Keep in mind that quotes are only estimates; the actual cost of coverage may be different than your estimate. You can request an insurance quote online, over the phone, or by reaching out to a broker or insurance agent.
Step 3: Look into discounts
Shopping around for discounts ensures that you are getting the most out of the investment you make when you buy home insurance.
Many companies offer discounts to customers with multiple insurance plans with their company. For instance, an insurance company may offer a discount to customers who have both a home and auto insurance policy with that company. Insurance companies may also offer discounts for installing a home security system or if a homeowner does not file an insurance claim for multiple consecutive years.
Step 4: See what other customers have to say
Most people check the reviews on a product they buy online before purchasing it, but people don’t always do that with their home insurance. J.D. Power conducts yearly surveys of homeowner experiences with different insurance companies. Their survey data is available in their Consumer Reports, but a paid membership is required to access and compare survey scores between companies.
The National Association of Insurance Commissioners, or NAIC, offers consumers information on complaints that are filed against insurance companies with state legislators. The NAIC also explains whether or not the number of complaints filed against a company is abnormal based on the size of the company.
Step 5: Compare companies’ financial health
An insurance company’s financial health indicates its ability to pay back claims filed by its customers. Best’s Consumer Center allows customers to evaluate the financial health of insurance companies so that they can make well-informed decisions when choosing a home insurance company.
Buying home insurance can be a stressful process, but it doesn’t have to be if you are informed about what each insurance company has to offer and what you want out of your home insurance. Properly evaluating companies’ pricing options, discounts, coverage, and financial health will ensure that you purchase coverage from the company that is right for you, your home, and your family.
