Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The best insurance company is the company that pays the most when you have a loss.
All insurance companies are companies that manage a pool of similar risks. Every insurance company is regulated by the insurance commissioner in the state where the company is organized and the state where the company is allowed to transact business. This combination of state supervision is designed to make sure that each company keeps their promises.
There are rating bureaus that offer information concerning various insurance companies. These bureaus generally give higher ratings to larger companies with longer histories. They are rating the financial capacity of the companies. While this is a good indicator of which insurance company to choose it is far from the only criteria.
Ultimately most people buy homeowner’s insurance from an agent. That agent might represent one company or one hundred companies. The point is that the relationship is not with the company as much as it is with the agent.
People buy insurance from people that they trust. A good agent will listen to you, provide sound financial advice and communicate clearly with you and the insurance company. The agent will propose a company. Few reject the company selected by the agent. The role of the company is to keep the promises that it makes.
There are a wide range of homes for insurance companies to insure. Some companies have an appetite for homes that are in the mountains or heavily wooded areas. Other companies will not even consider such a risk. Some companies will insure homes on bluffs overlooking the ocean while others won’t consider such a risk.
Underwriting will often have special rules regarding roof type, location of an evaporative cooler, presence of certain pets and presence of certain types of recreational equipment. There are many reasons for some of these underwriting decisions but the agent will be able to identify the best company for you.
The underwriter will try to suggest appropriate coverages. Even if you had the most highly rated company if the limits selected are not adequate, you could be left with a large loss in the event of a disaster. For example, you might have a significant amount of jewelry, photographic equipment, or musical instruments. If these are not insured correctly their loss could represent a significant financial loss for you.
The most significant area of underinsuring is liability. Your agent should let you know the highest amount that the company will provide. If you choose less coverage, any loss in excess to the limit in the policy will come out of your assets. Your agent should tell you about the availability of umbrella liability coverage. A lawsuit can make havoc out of the best financial plan.
Finally the way that the company pays the loss when you have a claim is the most critical factor. Homeowner’s claims are infrequent but tend to be severe. It is important that the agent you have selected assists you during this critical period. Maintaining communications with you during a claim is an identification of a really good insurance company.
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All insurance companies are companies that manage a pool of similar risks. Every insurance company is regulated by the insurance commissioner in the state where the company is organized and the state where the company is allowed to transact business. This combination of state supervision is designed to make sure that each company keeps their promises.
There are rating bureaus that offer information concerning various insurance companies. These bureaus generally give higher ratings to larger companies with longer histories. They are rating the financial capacity of the companies. While this is a good indicator of which insurance company to choose it is far from the only criteria.
Ultimately most people buy homeowner’s insurance from an agent. That agent might represent one company or one hundred companies. The point is that the relationship is not with the company as much as it is with the agent.
People buy insurance from people that they trust. A good agent will listen to you, provide sound financial advice and communicate clearly with you and the insurance company. The agent will propose a company. Few reject the company selected by the agent. The role of the company is to keep the promises that it makes.
There are a wide range of homes for insurance companies to insure. Some companies have an appetite for homes that are in the mountains or heavily wooded areas. Other companies will not even consider such a risk. Some companies will insure homes on bluffs overlooking the ocean while others won’t consider such a risk.
Underwriting will often have special rules regarding roof type, location of an evaporative cooler, presence of certain pets and presence of certain types of recreational equipment. There are many reasons for some of these underwriting decisions but the agent will be able to identify the best company for you.
The underwriter will try to suggest appropriate coverages. Even if you had the most highly rated company if the limits selected are not adequate, you could be left with a large loss in the event of a disaster. For example, you might have a significant amount of jewelry, photographic equipment, or musical instruments. If these are not insured correctly their loss could represent a significant financial loss for you.
The most significant area of underinsuring is liability. Your agent should let you know the highest amount that the company will provide. If you choose less coverage, any loss in excess to the limit in the policy will come out of your assets. Your agent should tell you about the availability of umbrella liability coverage. A lawsuit can make havoc out of the best financial plan.
Finally the way that the company pays the loss when you have a claim is the most critical factor. Homeowner’s claims are infrequent but tend to be severe. It is important that the agent you have selected assists you during this critical period. Maintaining communications with you during a claim is an identification of a really good insurance company.