Ranking Homeowners Insurance Companies: The Good, The Bad, And The Ugly

How is your homeowners insurance company rated? The only time you don’t want to know that you rank at the bottom of the list is when it’s time to file a claim. Insurance companies are good at taking your premium payment each month, but when it comes to paying claims, some companies rate better than others.

Most of us never think about our homeowners insurance until it’s time to file a claim. In fact, we can spend years just submitting our premium payments and not even calling our agent to say hello. Then the day comes when you need to file a claim and find out that red tape and red tape are the name of the game. This situation played out very well recently during Hurricane Katrina, where certain homeowners insurance companies fought tooth and nail to avoid paying claims to the victims of this devastating event.

Fortunately, there are several ways to find out how good your insurance company is and whether they can do more than issue a quote without a fight. Various online and offline resources track insurance company ratings and personalized satisfaction scores to help you be a better-informed consumer.

AM Best (www.ambest.com) is one such source that provides information on the financial health of your homeowners insurance company. They track the ability of insurers to pay for losses in the event of a major disaster. Its ratings are the industry standard for measuring the financial well-being of all property, casualty, and life insurance companies.

When it comes to actual consumer satisfaction ratings, the data is not as well maintained as financial ratings. Several websites offer consumer feedback on insurance companies, as well as reports from policyholders on the general handling of routine inquiries by insurance companies. The best source of insurance company satisfaction ratings may come from other people in your community who often have first-hand experience with many of the local homeowners insurance companies in your area.