Understanding Homeowners Insurance - A Review By The Experts
According to a 2013 study conducted by Marshall & Swift/Boeckh, approximately 60% of homes in the U.S. are under-insured. The study suggests the majority of these homes are at greater financial risk because these homeowners don’t know what kind of coverage they need. Homeowners know that the process of selecting the best homeowners insurance company can be frustrating. With so many policies to choose from today, how can they be sure they are selecting the best company to meet their needs? In an effort to simplify the selection process, the team at Reviews.com set out to research the top homeowner insurance providers available today.
How The Research Was Conducted
Since purchasing homeowners insurance is often the largest and most important decision a homeowner will make, the team made certain to select companies that were financially strong, offered a wide variety of coverage options, and offered excellent customer service to their policyholders.
The staff at Review.com started their research by looking at 99 insurers from The Insurance Information Institute and individual states insurance departments’ websites.
Criteria Used in the Selection Process
Each provider evaluated must meet the following standards:
Must offer policy coverage in a minimum of 35 states
Must maintain a high rating with A.M. Best AND either Standard and Poor's OR Moody's for financial strength
Must underwrite for "Open Perils" coverage
Must not use brokers or middlemen
Must offer discounts to policyholders
Must have a high rate of customer satisfaction
Insurance Companies that Made the Final Selection List
1. Amica was selected as "Best Overall" for having the highest customer satisfaction with the overall claims process.
2. Allstate won for "Best for First-Time Homeowners" for offering consumer education tools, the most available discounts, and their knowledgeable staff.
3. State Farm was selected as "Most Well-Rounded" for their financial strength, customer service, and client claims satisfaction.
Two other companies to consider include MetLife and Travelers. MetLife offers standard guaranteed replacement cost coverage of not just contents of the home, but the home itself, if it is completely destroyed. Travelers tied with State Farm.
What Reviews.com Thinks you Should Consider When Choosing a Homeowners Insurance Policy
Remember to choose a homeowners insurance policy based on the amount it will cost to completely rebuild in the event of a total loss instead of basing the policy coverage on the home's current value. Allow for an increase in supply and labor expenses for the future as well.
While a homeowners policy DOES cover the home's contents, there are usually coverage caps within the general policy. For maximum coverage of prized or very expensive items, have each item officially appraised, and cover them with special endorsements at each item's appraisal amount.
Keep in mind that Flood Insurance is NOT a part of standard home insurance. It must be purchased separately. Since flooding is the single most common and expensive result of natural disasters, buying a separate flood insurance policy makes sound financial sense.
Home insurance is not designed to cover normal wear and tear issues. Those issues are covered by the home's warranty.
Where to Start
Armed with the helpful information in this review, now is the time to start preparing for any potential future disaster. Homeowners should put together an accurate listing of their personal belongings and any expensive home items that may need to be covered by special endorsements.
Once that step is completed, homeowners should also visit each company's web site in order to take advantage of their online coverage calculators, and other tools designed to help them find the right coverage for their needs. Selecting the right insurance company has never been easier.
Check out their full review and guide here: http://www.reviews.com/homeowners-insurance/
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