5 Ways to Tell that a Home Insurance Company is Reputable

We all know the feeling of getting something promised only to be let down when you need it most, like a co-worker who promises to help with a specific project and doesn’t or a bad dinner. It’s unnerving to find out that something as big as your home insurance can’t or won’t deliver on what you thought it covered, and this is why you want to avoid this at all costs by going with a reputable one.

But here lies the problem. How do you know for certain that your home insurance company is reputable? It’s not like you really know them until you need them, and many of them are very good at promising things to get you to sign up. The good news is that there are five big ways you can use to tell whether or not a specific insurance company will fulfill their promises and protect your home. You can find out more below.

1. Check Their Licensing and Complaints

One of the first things you want to do is head on over to your local Department of Insurance for your specific state. This list has each state with the address, phone number, website link, and the name of the commissioner or director of insurance. Once you get here, search for your insurance company. This will tell you whether or not they have official state licensing. If they don’t, you want to stay far away.

A second big thing to check is their claim satisfaction rate and any complaints people put in against them. People will let you know when they’re not satisfied with a company, and it’s easy to spot trends in the complaints. They may have a slow claims process, hidden restrictions, or flat-out refuse to answer their customers. The National Association of Insurance Commissioners (NAIC) will have this information. If you see a low number of complaints, this is a point in the insurance company’s favor.

2. Financial Strength

A high-quality insurance company will have a good financial strength. This is because more and more people want to interact with them and use them for their insurance company for their home insurance. This increases a company’s financial strength because they’re taking in a lot of money in premiums and fees. Having a strong financial strength also means that they’ll have the money on-hand if you have to make a claim.

You can look up any home insurance company using A.M. Best, which requires a free membership login to access the information. This will give you the insurance carrier’s industry rating based on its size and give you an idea of the company’s financial health. The biggest companies might not be the best choices, so don’t automatically forego smaller ones.

3. Claims Process

If you have to file a claim, you don’t want to have to wait days or weeks to get in touch with your insurance representative to get the ball rolling. It can be a traumatic time, and you need the reassurance that your insurance company will work with you as quickly as possible to repair the damage to your home. How smooth the claims process is will be a large indicator of how reputable a company is. If they make it difficult and time-consuming, consider looking elsewhere.

JD Power and Associates will show you how satisfied customers are with any insurance company’s claims process. However, you should also contact the company directly and ask questions. Find out what their claims filing process is and the steps they take to resolve it. Ask how they manage each claim and how they decide on an award amount. If you have a unique situation, include it in your questioning. A reputable company will be happy to answer your questions and walk you through its claims process.

4. Ask a Third-Party Insurance Advisor

When you work directly with a home insurance agent that works for a specific company, you can get biased answers. A third-party insurance advisor will take a look at your best interests and use their experience, knowledge, and working relationships with home insurance companies to help guide you and match you with the company that best suits your needs. Since they’re not loyal to a specific company, they give unbiased advice.

Also, keep in mind that the biggest and most well-known companies don’t necessarily mean that they’re the best for your situation. Make sure you do your due diligence alongside your third-party agent to find the best policy for your needs. They’ll help you discard any companies that don’t fit while narrowing down your search to the companies that offer coverage that fits your budget, lifestyle, and any special needs.

5. Communication Style

Finally, you want to find out as much as you can about a company’s communication styles. If you put in a question, how long does it take them to respond to you? Ideally, it should be between 24 and 48 hours if it’s during the weekday. Weekends may take longer. When they respond, how professional are they? Although the response may not be completely formal, it should still feel like they’re treating you professionally.

Once you’ve established contact with the company and exchanged a few emails, do they start personalizing their correspondences? A good company will without managing to slide out of professional territory. A reputable company will take the time to carefully answer all of your questions and address any concerns very quickly. The Better Business Bureau is a place you can check and see how customers rate the company alongside your own personal experience you got by interacting with them.
If you’re ready to start comparing quotes from hundreds of insurance companies, Nsure can help. We work with reputable insurance companies, and we’ll give you dozens of quotes tailored to your needs. You can check out our reviews, compare quotes, and save money while getting a policy that will cover your home when disaster strikes. Contact us today for more information.