Cheaper Home Insurance

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Home Insurance Ratings

Where to Find Cheaper Home Insurance

Cheaper Home Insurance
Cheaper Home Insurance?

Are you looking for cheaper home insurance? Your average homeowner pays $50-$100 per month in premiums for a home-owner’s insurance policy, depending on the price of the home being insured. This cost may seem insignificant compared to how much most of us pay for auto insurance. Because of the huge difference we pay insuring a car vs. our home, Home Owners insurance may seem like an afterthought to many of us. In my last 23 years as a home owner, I never gave much thought to shopping for a better deal. I’ve been insured by four different companies: State Farm, All State and California Casualty.  In each case, I saved about 5-15% on my home insurance policy by having a couple of my cars insured by the same company. In other way to save on home insurance premiums is to raise your deductible from $500 to $1000.  Sometimes, you can save as much as 25%.  The best way, though, is to simply shop.

Besides looking to save money, though, the most important thing you can do is choose a company that is highly rated. Thankfully, AM Best rates home insurance companies the same they do automobile insurance. You can look up an insurance company’s risk factor and financial stability online at anytime. Choose a company with a high rating of integrity and security. Even better, JD Powers has provided a very useful ranking of the top Home Insurance Companies. As they did with the Car Insurance Ratings a few months back, JD Powers has ranked the top insurance carriers. Home Insurers are rated JD Powers on Five Key Factors: Insurers are ranked by JD Powers on Five Key Factors: Overall experience, customer interaction, policy offerings, billing & payment, and price. I’ve selected 10 of the most popular home insurance companies and posted the results below.  Amica Mutual is number one with a perfect score of 100% in all five categories. No other company comes close. In case you didn’t see the article on Car Insurance Ratings; Amica won that contest too back in 2009. One thing worth mentioning: If you are employed by a company that is involved in a union, both your home and car insurance savings could be huge by going with the company union insurance plan. My wife is a teacher, so we went with California Casualty a few years ago, and are saving a bundle on both Home Insurance and Car Insurance. Why such a huge savings? Because you can take advantage of large group discounts – that are significantly greater than company life and health insurance plans. Because unions can cover such a widespread number of companies or establishments, the group discounts can be amazing. For instance, Amica Mutual, who according to JD Powers offers the best Home Owners pricing, was about 25% higher when I compared them to California Casualty a few months back.  I would take the ratings below with a grain of salt. I know other people who have shopped for cheaper home insurance and their quote from Amica didn’t fare as well as other popular home insurers such as Allstate, Farmer’s or State Farm. I’m not sure if these rankings below are biased geographically or in some other way that may not reflect the needs of everyone. At any rate, it’s a good starting place to shop for home and car insurance.

The bottom line: Go to AM Best and find a company with a good solid stability rating. Increase your deductible to $1000 if you can, and ask for a discount if your Automobile Insurance is through them. Meanwhile, feel free to use the rankings below for a rule of thumb, next time you’re shopping for a cheaper home policy.

Home Insurance Ratings

Insurance Overall Contacting Policies and Billings and Pricing
Company Experience the Insurer Offerings Payment
Amica 100 100 100 100 100
The Hartford 80 60 80 80 80
State Farm 80 100 80 80 80
Allstate 60 60 60 60 60
American Family 60 60 60 60 60
Liberty Mutual 60 60 60 60 60
Met Life 60 60 60 60 60
AIG 40 40 40 40 40
Farmers 60 60 60 40 40
Fireman’s Fund 40 60 40 40 40


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