I am comparison-shopping the various insurers. What questions should I ask before selecting a home insurer?
When shopping insurance companies, there are several questions that you will want to ask before purchasing -- in addition to price of the home policy package, quality of service, speed in settling claims, and differences in coverage.
First, the insurance company must be licensed to transact business in your state. Check with your state department of insurance to make certain that the company offering you insurance is an "admitted" insurance company in your state. An un-authorized insurer may come into your local area offering insurance without a license, offering cheap rates but not being legally allowed to offer insurance.
Second, look at the financial strength of the insurer. Make certain that it maintains sufficient reserves in order to pay claims in the event of large catastrophic disasters. There are also insurance rating services that rank the financial strength of insurance companies (i.e. - Moody's, Best's, etc.)
Third, ask your neighbors. You may find that a lot of your neighbors insure with a particular company that has a good track record with respect to payment of claims, and generally has decent premium rates for your neighborhood.
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