4 Strategies for Choosing a Property Insurance Company

Shopping for a property insurance company is just like finding the best medical provider in town. Choosing an insurer to help protect your business's material assets is very important. Here are strategies you can use to find a good deal.

1. Checking the Insurer's Reputation

Talk to a group of other business owners and find out which property insurance company their business is affiliated with. Their responses can give you clues on whether the company has a good reputation or not. Ask questions like:

  • How is their customer service? Do they immediately answer and explain your queries the way you expect them to?
  • How prompt are they in working with claims? Do they release reimbursements on time as promised?
  • How reliable is the company when it comes to taking care of your insurance-related problems? Do the provider's representatives attend fairly and efficiently to your needs?
2. Looking into the Company's Reliability

One way to find out the firm's reliability is by calling your state's department of insurance. Check if the property insurance company is licensed to operate in your state. This office can help you settle problems with an insurer found on their list when the need arises. Another source where you can survey the provider's trustworthiness is the Better Business Bureau. This organization publishes reports and complaints against a business. Read the comments provided by customers on each company you have in mind.

3. Assessing the Company's Financial Stability

Review the property insurance company's financial standing. Independent rating agencies such as Moody's Investor Service, Standard and Poor's and A.M. Best Company disclose on their websites the monetary condition of businesses. An insurer with an excellent financial stability rating is a great candidate to consider because it gives you assurance that your business's properties will be well protected when disasters happen.

The other factor in knowing an insurance provider's financial status is its number of years in the business. Consider an insurer that has been in the industry for at least ten years. A company that has maintained its existence in the market for that long of a period of time indicates its ability to withstand economic downturns. This offers peace of mind that you won't have with newly established insurance providers.

4. Comparing Insurance Policy Prices

Gather policy quotes from three to four companies. Some insurance providers offer the same kind of plan but differ greatly in price. Compare the lists of coverage every company provides and examine the designated costs of each policy. Decide which coverage is more beneficial for your business and at the same time has a practical price. Implementing this strategy helps you save money that you can use for other business purposes.


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