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Contact your state Department of Insurance regarding the homeowners insurance companies that you are considering. Many states have online databases of companies available. All insurance companies must be licensed in the states in which they do business. If a company that has offered you insurance does not appear in any state insurance department databases, don't do business with them.
Research the ratings of each homeowners insurance company. Every rating bureau uses a slightly different methodology for determining the financial strength of an insurance company. Try to do business with companies that have the highest ratings available. If a company has weak ratings, they may be less willing--or completely incapable--of paying out claims. Check the public insurance company credit ratings published by A.M. Best, Standard & Poor's or Moody's on their websites. If an insurance company has a poor credit rating, it indicates that it
may not be able to pay out claims.
Look at subjective reviews from third-party organizations that review insurance companies based on criteria like customer service and affordable pricing. The Better Business Bureau, a nonprofit organization, publishes ratings and consumer complaints regarding insurance companies. Keep in mind that an insurance company's customer service in one category, such as auto insurance, may not apply to the insurance they provide for homeowners.
Choose a homeowners insurance policy based on a combination of the financial strength of the company, the rates it offers and the quality of the service. Purchasing a policy with a very low rate will be unproductive if the company fails to pay out claims or goes bankrupt. Compare rates from multiple companies to get a better sense of the pricing for homeowners insurance in your locality. Prices and other details for homeowners insurance policies differ greatly depending on location.