Which Homeowners Insurance Company Is Best? 
The best insurance company is the company that pays the most when you have a loss . All insurance companies are companies that manage a pool of similar risks . Every insurance company is regulated by the insurance commissioner in the state where the company is organized and the state where the company is allowed to transact business . This combination of state supervision is designed to make sure that each company keeps their promises . There are rating bureaus that offer information concerning various insurance companies . These bureaus generally give higher ratings to larger companies with longer histories . They are rating the financial capacity of the companies . While this is a good indicator of which insurance company to choose it is far from the only criteria . Ultimately most people buy homeowners insurance from an agent . That agent might represent one company or one hundred companies . The point is that the relationship is not with the company as much as it is with the agent . People buy insurance from people that they trust . A good agent will listen to you , provide sound financial advice and communicate clearly with you and the insurance company . The agent will propose a company . Few reject the company selected by the agent . The role of the company is to keep the promises that it makes . There are a wide range of homes for insurance companies to insure . Some companies have an appetite for homes that are in the mountains or heavily wooded areas . Other companies will not even consider such a risk . Some companies will insure homes on bluffs overlooking the ocean while others wont consider such a risk . Underwriting will often have special rules regarding roof type , location of an evaporative cooler , presence of certain pets and presence of certain types of recreational equipment . There are many reasons for some of these underwriting decisions but the agent will be able to identify the best company for you . The underwriter will try to suggest appropriate coverages . Even if you had the most highly rated company if the limits selected are not adequate , you could be left with a large loss in the event of a disaster . For example , you might have a significant amount of jewelry , photographic equipment , or musical instruments . If these are not insured correctly their loss could represent a significant financial loss for you . The most significant area of underinsuring is liability . Your agent should let you know the highest amount that the company will provide . If you choose less coverage , any loss in excess to the limit in the policy will come out of your assets . Your agent should tell you about the availability of umbrella liability coverage . A lawsuit can make havoc out of the best financial plan . Finally the way that the company pays the loss when you have a claim is the most critical factor . Homeowners claims are infrequent but tend to be severe . It is important that the agent you have selected assists you during this critical period . Maintaining communications with you during a claim is an identification of a really good insurance company . 