Home-Buying
Process:
Purchasing Homeowners
Insurance
Stability of the Insurance Company
Be sure the insurance company is financially stable and will be around to pay any claims. The higher the financial rating, the stronger and better prepared the company is to be there if a real disaster strikes. A.M. Best Company, Inc. and Standard & Poor’s Insurance Ratings Services are two of several companies that rate an insurance company’s strengths. Their publications are available at the public library. Choose a company that has a higher rating on the scale used by the rating company. A.M. Best Company uses the rating scale between A++ to F-, so you would want to choose a company with a rating between an A++ to A-. Many insurance companies list their rating in their company information.
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| Homeowners Insurance Comparison |
Mortgage lenders usually require customers to work with an insurance company that meets certain requirements. Some mortgage lenders will only work with insurance companies of high ratings. Get the names of several highly rated insurers. Then compare prices and policies. It could save you hundreds of dollars on your yearly insurance bill. Use the Insurance Comparison Work Sheet to help you compare different coverage options as you shop for homeowners insurance.
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