Factors that go into a home insurance comparison include the financial ratings of the insurance companies, the amount of coverage, valuation clauses and customer service, explains Allstate. Further ways to compare entail looking at safety discounts and any discounts insurers give to members of certain organizations, according to About.com.Continue Reading
A.M. Best is a third-party company that provides insurer ratings, according to Allstate. Such ratings are critical because the higher a rating, the more likely an insurer has the financial means to pay out claims. Homeowners also need to find out what a policy covers. An open-perils policy is more inclusive, excluding only the listed perils. A named-perils policy covers damage from only the named perils.
Valuation clauses, another point of comparison, cover whether a payment is replacement cost or actual cash value, explains Allstate. Actual cash value payments tend to be lower, because they consider depreciation, while replacement costs don't. One way to assess the customer service of a company is to examine whether it provides online claims submissions, tracking and personal contact with agents.
Insurers give discounts for safety measures such as smoke alarms and sprinkler systems, and homeowners need to find out just how much they stand to save with each insurer, according to About.com. A homeowner who is a member of an organization such as a credit union should also consider potential home insurance discounts that stem from the membership.Learn more about Insurance