Finding & Choosing the Right Home Insurance Company

Buying a home involves a lot more than just the purchase process. Once you take possession of those new house keys, you also must begin thinking about—and budgeting for—homeowners insurance, utility bills, maintenance and upkeep, loan payments and property taxes.

If you're not careful, you might find all those financial commitments burning a hole in your pocket.

Choosing Wisely

How can you choose the right insurance plan for you? Gather lots of information.

As you're sorting through the quotes you receive and looking for the right insurance provider, you'll want to get the basics on each company. This is a very important part of the process, and can help you choose your insurer wisely.

Here's what we recommend. First, make a list of those companies you are considering doing business with, based on the information our agents provide. Then, follow this checklist, making notes beside each company name as you go along to ensure you make the wisest choice in home insurance providers:

• Verify that each is licensed to conduct business in your state. Check with your state department of insurance for this information (you'll find links to state Web sites here).
• Take time to speak with the agents you're matched with. You may find one who seems more knowledgeable or another you're just more comfortable working with.
• Ask each insurer for customer references. Then call the names provided and ask what they particularly like about the company, what they don't like and whether or not they would choose the same insurer again.
• Check out each one's history, financial stability and customer service scores to find out where they've been, where they're going, and how other customers rate them in the process. You can get some of this information on their Web sites; other parts you can look up in your local library or find through independent online rating firms such as A.M. Best, Standard & Poor's or Weiss Ratings Inc.

Now, narrow down your choices based on what you've learned. At this point, choosing the right insurer should be a breeze!