907 W Main St
League City, TX 77573

Choosing an Insurance Company!

Choosing an Insurance Company!

Why is this so important? Insurance is insurance, right? You want the best rate, got it? Remember what our parents always told us growing up as kids? YOU GET WHAT YOU PAY FOR!!!!

There are many insurance carriers to choose from, however, in our area, it has become somewhat limited due to the hurricane exposure we have here in League City, Dickinson, Friendswood, Seabrook, and surrounding areas along the coast of Texas. Many companies just don’t want the financial risk associated with insuring homes along the Texas coast? The reason? Most hurricane models indicate that a Cat 4 going straight up the ship channel will bankrupt most insurance companies! Think about it, a Cat 4 straight up the ship channel bankrupting national insurance companies!

For this reason, it is important to be careful in selecting an insurance company. Here are some tips:

  • Financial Stability! An insurance company needs to have the assets to be able to pay claims. Refer to A.M. Best since they give a rating of financial strength that determines if the company is superior (A+), excellent (A), good (B+), and worse on from that point.
  • Does the company pay claims well! In researching an insurance company, I am putting this one near the top. It is important to ensure that when you need the insurance company the most, they come through for you! Check the online reviews.
  • Customer Service! An insurance company needs to be attentive to your insurance needs. Courteous, respectful, questions answered, and most of all, when you have a claim.
  • Online Reviews! Take a look at the online reviews, but be careful in reading them. For instance, if someone is unhappy because they did not choose the right coverages, which is not the insurance carriers fault. Or, if they are unhappy because the policy cancelled because they did not make a payment/payments. That’s not the insurance companies fault either. Find the reviews that have to do with claims, service, or spending time in explaining coverages to the client.
  • Price! I want to be careful here for many reasons. Cheapest is not the best, and the best is not always the cheapest! Remember what I put in BOLD in the first paragraph of this article. If all that you want is cheap insurance, then, more than likely, you will be very disappointed when you have a claim, have a servicing issue, cut your coverages for price without consent! Or worse, the carrier does not charge adequate rates and declares bankruptcy (this does happen)! My Agency writes insurance all the time when a new client has bad claims experience, bad customer service, or a policy not written correctly by another insurance company! And, yes, when they get a letter that their current company is in receivership.
  • Policy Coverages that are important to you! When shopping for insurance coverage, make sure that you choose a company that can provide you with specific coverages you want!

These are just some tips that you can use, and I recommend you do! Remember, after a claim occurs is NOT the time to review your coverages. That will be too late! Call us here at the office if you have any questions!