Top Five Places to Buy Homeowners Insurance

Homeowners insurance is the protection that could end up saving you thousands of dollars in damage repairs and possibly prevent bankruptcy or foreclosure. Knowing which companies offer the best insurance, service, rates and coverage is instrumental to being more safe and sound in your home.

According to JD Power and Associates, a company that collects consumer data on corporate performance, Amica Mutual won the JD Power 2009 Award for the best homeowners insurance provider in 5 categories including overall customer satisfaction, pricing and policy offerings. Other companies that scored high ratings with JD Power and Associates were State Farm Insurance, Alfa Insurance, The Hartford, and Erie Insurance.

Large well known companies such as American International Group (AIG), and Travelers Insurance did not perform well in JD Power and Associates rankings despite their high capitalization and market share. What this suggests is choosing a top five home insurance company simply on the size of the company is not necessarily a wise decision. Since homeowners insurance policies are valuable financial instruments that can protect real estate, choosing an insurance provider carefully rather than carelessly is worthwhile and helps provide  peace of mind.

The top five places to buy homeowners insurance are also determined in a number of other ways. For example, a homeowners insurance company can be categorized by total national coverage amounts, or by the premiums it receives each year. Homeowners insurance companies can also be chosen based on the type of coverage they offer as some home owners may be looking for specific advantages and select coverage types such as earthquake or flood insurance.

A top five homeowners insurance company may also be selected by the credit ratings of those companies and the financial solvency of the company, i.e. its ability to pay claims and the reputation of the home insurance company as a whole. According to AM Best Company, which performs insurance company ratings and analysis, several home insurance companies rank high in terms of financial solvency. Among these is also Amica Mutual Insurance Company that receives an A++ rating by A.M. Best Company and is designated as having a stable outlook by the ratings service.

In light of the above methods of determining a top homeowners insurance company, five companies do stand out as providing superior home insurance in terms of security, service and coverage. These 5 companies are Amica Mutual Insurance Company, Erie Insurance Company, State Farm General Insurance Company, The Hartford Insurance Pool and USAA Insurance Group.  All these companies have high credit ratings and financial outlooks in addition to top scores in JD Power and Associates 2009 home insurance provider rankings.

A.W. Berry -HomeownersInsurance.org Expert A.W. Berry is a published personal finance writer with an interest in all kinds of money matters. His professional background in finance, marketing and sales directs his reporting to pertinent local issues.