Choosing A Home Insurance Company Based On Its AM Best Rating

If you carry home insurance in the state of Florida, chances are you are paying higher premiums than ever after the 2004 hurricane crisis.  With many Florida home insurance companies going out of business because of irresponsible underwriting ratings, many homeowners are skeptical when switching their homeowners insurance from one carrier to another.  In order to have the peace of mind you need when securing home insurance, you must do your research on local companies and choose the most reputable company that is prepared for catastrophic losses of all sizes.  While you never want to result to filing a home insurance claim, knowing your insurer will be there to provide you with claims assistance when you need it is essential.  Be sure to screen the choices that top your list and choose the best insurance company that is known for premier customer service, competitive rates, and excellent claims handling.

The first step to finding a reputable insurer is reviewing the insurer’s ratings with consumer organizations that are dedicated to investigating how stable a company is.  Financial stability ratings for property and casualty companies can be found online.  These consumer organizations are non-biased and gather statistics on the assets of a company, their reserves, and also the company’s ratings for customer satisfaction.  Perhaps the most reliable source to review companies is through AM Best.  As the leading information provider for the global insurance industry, AM Best develops opinions on a company’s financial state based on evaluating the companies strengths.  Most mortgage lenders requiring Evidence of Insurance will require that the insurance company a buyer chooses be rated no less than an A through AM Best.

Once you have narrowed your search by choosing only A-rated Florida home insurance companies, you can then begin to delve deeper by receiving quotes and researching customer satisfaction.  It is recommended to receive a variety of quotes from each company with a high limit of coverage, a moderate limit of insurance and a low limit of insurance.  Obtaining three separate quotes from each insurer will allow you to compare policies and choose the most reasonable policy with the most comprehensive coverage.  Some shoppers will be surprised that the difference in premium between a limited policy and a comprehensive policy is not significant.

Take time to sit down and compare each policy quote.  It is recommended to compare no less than three AM Best A-rated companies.  With three different policies to choose from, you will be able to make a well-educated decision and determine which limit of coverage you can afford.  If you are unfamiliar with the basics of homeowners insurance coverage, be sure to sit down with an experienced agent to discuss all of your insurance coverage options.

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