Standard homeowners insurance policies provide four types of coverage. According to the Insurance Information Institute, standard policies cover home repair or replacement resulting from covered disasters. Personal belongings are also covered, plus temporary living expenses if you can't stay in the home due to a covered disaster. Finally, the policies offer liability protection against harm caused to others by you, family members, or pets. Flood or earthquake coverage requires an additional policy purchase.
Step 1
Contact your current auto or health insurer. Call the agent who handles your auto or health insurance, and ask him for information on homeowners insurance policies. You'll probably receive good service from an agent who knows you personally and has your information on file. You may receive a discounted homeowners insurance rate because you maintain other policies with the same company.
Step 2
Ask a local real estate agent for recommendations. Ask a successful agent if she maintains a database of homeowners insurance companies. If so, inquire about insurers that have provided good service to her clients. Although she may stay impartial by not recommending specific companies, she may be willing to furnish names of local agents whom she has found helpful.
Step 3
Contact business or professional associations. If you belong to a national business group or professional association, you may be eligible for homeowners insurance as a membership benefit. The American Dietetic Association and American Medical Association are two examples of participating professional associations. Ask about special rates for association member coverage, and see if rates are similar in all parts of the United States..
Step 4
View a nationwide insurance provider directory. The Insurance Information Institute provides information on many insurance-related topics. As part of this consumer service, you can search a nationwide directory for homeowners insurance providers in your state (See Resources).
The Institute also recommends that you choose a homeowners insurance provider licensed in your state. If you're dealing with a state-licensed provider, your state insurance department can intervene if there's a policy interpretation issue (See References).
Step 5
Evaluate financial health of prospective insurers. Before you select a homeowners insurance company, Consumer Reports online magazine recommends that you research the company's financial health. Insurance companies are rated on their overall financial stability, which translates into the company's ability to pay its claims. Rating information can be obtained through the Standard and Poor's Index (See Resources).
Step 6
Investigate complaints against companies in your state. Consumer Reports also recommends that you contact your state department of insurance to learn of complaints or actions filed against state-licensed insurers. You can obtain this contact information through the National Association of Insurance Commissioners (See Resources).
Step 7
Select your homeowners insurance provider. After you've evaluated potential insurers, you'll probably have a short list that requires more attention. Contact those companies or agents, and request specific information about their homeowners insurance products. Obtain competing quotes for similar coverage, and choose the company that best meets your needs at the most competitive price.
Things You'll Need
- List of local insurance agents
- Homeowners insurance information (if applicable)
- List of local insurance companies
- Information on insurance company prospects' financial health
- Complaint information from state Department of Insurance (if applicable)
- Quotes from competing insurance companies
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