Shopping for a new home can be daunting, but shopping for new homeowners insurance? That can be downright mind-numbing. With so many options, how can you be sure your making the right choice?

One big way to narrow down your options is to check out the complaints against insurers. This is a huge consideration, as you’re likely to have a similar experience. It helps to know what to expect and which insurance companies to shy away from.

So how do you go about finding these reviews and complaints? The National Association of Insurance Commissioners collects complaint information from state insurance commissioners on a regular basis.

To see the complaint report of an insurer:

  • Go to naic.org
  • Type in the company name and state you live in.
  • Pay attention to the complaint ration. (This compares the insurance company’s market share of complaints with its market share of premiums for a specific policy type.)

 

Consider it a red flag if the median complaint ratio is 1 and the company’s ratio is 2. Also, make sure to check the website for your state insurance regulator. Many state websites will include detailed complaint information. This can help you avoid a less than desirable experience and spare you from a ton of frustration.

Written by knox