Homeowners insurance quotes can be compared according to the company's financial rating, specific perils that are covered, the company's valuation clause and its overall customer service rating, according to Allstate. Homeowners can also compare the company to others according to statewide costs, financial health and the types of exclusions the company has, notes Investopedia.
Checking an insurance company's financial rating lets homeowners know how capable it is of paying off a future claim, notes Allstate. Special websites, such as A.M. Best Company, provide credit ratings for insurance companies.
Knowing whether a company handles named perils or open perils also helps homeowners narrow down their options, according to Allstate. The only perils covered on a named peril policy are those specifically listed and covered, while open peril policies cover any perils that might befall homeowners other than those explicitly listed as not being covered.
An insurance company's valuation clause indicates how it pays out claims, notes Allstate. If the valuation clause is replacement cost, the claim payout includes inflation in order to account for the most current cost of replacement. An actual cash value valuation clause means the claim payout is only for how much the property was worth when it was built or installed, which accounts for depreciation, meaning the payout is likely to be for less than the total replacement cost.