How should I choose an insurance company for homeowner's insurance? It is important to learn the history of your insurance company. An insurance policy is a promise, and it is only as good as the paper it...
An insurance policy is a promise, and it is only as good as the paper it is written on. The only time you will know if it is any good is when you actually file a claim. So, to that end, it seems to me that you would want to look at a company that is strong financially and has a good track record of customer service and working with clients, as well as one that has great financial "legs" and is going to be there in the future. Those are the things you should look for. I realize that people shout price, price, price! Price is important, but price does not mean a thing when you make a phone call you hope you never have to make to get a claim going and the company is out of business or they don't have the money to back up their policy. At that point, what good is all that money you saved? It is wasted money at that point.
So, if you have to pay a little more when you are dealing with a company that you know is going to be there and you know has the financial means to handle whatever comes its way, I would say that it is probably worth it. You know, State Farm is one of the few companies that was big enough to handle the rash of destructive hurricanes in Florida last year - hurricane after hurricane after hurricane. We met all of our responsibilities and we're prepared to handle anything else that comes our way. It was a substantial season for us, but we were prepared to handle that situation. I don't know that every insurance company could say that.
