Why should I check a home insurance company rating?


Everyone wants to make sure that the home insurance company they select will be there for them to provide adequate compensation if they suffer any damage to their home. Unfortunately, there are a lot of providers which unjustly deny home insurance claims or do not provide fair claim settlements. This fact should make you more vigilant when it comes to comparing home insurance companies.

Why Home Insurance Company Rating is Important

Imagine that you have come across a home insurance quote that you consider "a great deal" because of the low premiums, and you go for it because of the low price, without questioning the company's credibility. Two years later your basement and its contents are seriously damaged by a pipe break. You try to file a claim only to find out that your home insurance company has declared bankruptcy because of the financial crisis. You have to bite the bullet and pay for the damages yourself.

Here is another hypothetical situation. Your home insurance company, whose bad complaint record you have somehow missed to become familiar with prior to buying your policy, denies your home insurance claim because you haven't filled in the claim form properly. People usually take the insurer's "No" as final, even when they feel the decision is unjust. A lot of unfair insurers rely on this trick and unfortunately, more often than not, it works.

The two instances presented above only illustrate how important it is for a potential home insurance buyer to check each home insurance company's rating before making a final decision. An insurance company's financial stability and reliability are equally as important as the quotes themselves.

To assist consumers in making the right choice, a number of agencies provide insurance company rating services. Best's and Weiss Rating are two of the organizations which are supposed to provide unbiased and objective rating services. You can either check their web pages, or contact the National Association of Insurance Commissioners which will provide you with the detailed history and complaint record of each home insurance company. Never go with a company rated B or lower, A and A+ is the rating you should be looking for.

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