Homeowners Insurance: Other Factors

If you already compared pricing and coverage options in the previous section and found a clear winner—meaning one company stood out by offering the best deal—then this section won’t change your decision. Still, you may choose to review these additional factors just to better understand the company you plan to insure your home with.

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The purpose of this section is to help you evaluate other important attributes when two or more companies are offering similar pricing and coverage. When no offer stands out on cost alone, these extra factors can help reveal which company is truly the better choice.

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Aside from the price they charge, homeowners insurance companies differ in how they operate, how well they handle claims, how financially stable they are, and how easy they are to work with. Reviewing these factors among your top candidates gives you a clearer picture of which insurer will serve you best over the long term.

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Your Offer Comparison Sheet includes space for up to three of these “other factors.” Choose the factor most important to you and list it first.

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For each factor, you’ll need to do a bit of research. Use reliable sources, assign a ranking (5 stars to the best, 4 to the next, and so on), and compare the companies side-by-side.

If the first factor doesn’t reveal a winner, move on to the next. Most shoppers find a clear separation after the first or second factor.

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Below are some of the most commonly evaluated “other factors” for homeowners insurance.

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Financial Strength

One of the major considerations with homeowners insurance is a company’s ability to pay claims—especially large ones. Home insurance claims can be significant, such as damage caused by fires, hurricanes, or major water losses.

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This is why financial strength ratings are a top comparison point.

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These ratings measure how financially stable an insurance company is and how capable they are of paying claims even in high-loss years.

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Common rating agencies include:

• AM Best (most widely used)

• Moody’s

• Standard & Poor’s (S&P)

• Fitch Ratings

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Look up each company’s AM Best rating (or another agency’s rating) and rank them on your comparison sheet. The company with the strongest financial rating should receive the highest score.

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Claims Servicing & Resolution

When your home is damaged, filing a claim becomes the most important interaction you’ll have with your insurer. How a company handles claims—not just how fast, but how fairly—can make the difference between a stressful experience and a smooth one.

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Key things to look for:

• Speed of claim resolution

• Customer satisfaction with claim outcomes

• Number of complaints related to claims

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Because companies rarely release detailed claim statistics, the easiest way to compare is through complaint indexes and consumer complaint data.

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You can obtain complaint information through:

• Your state insurance department website

• The National Association of Insurance Commissioners (NAIC) Consumer Information Source

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The company with the fewest claim-related complaints should receive the highest rating.

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Policy Options & Customization

Homeowners insurance is not as “standardized” as auto insurance. Policies often differ in how flexible they are, what extra protection is included, and how many add-ons you can choose from.

Things you may compare include:

• Available add-on coverages (flood, earthquake, sewer backup, equipment breakdown, identity theft, etc.)

• Replacement cost vs. actual cash value options for the home and belongings

• Inflation protection options

• Customization flexibility

• Extended dwelling coverage availability

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The company offering the most value and flexibility—especially those with stronger replacement cost options—should be rated highest.

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Technology & Support

Modern homeowners want convenient ways to manage their policy and communicate with their insurer. This factor looks at how easy the company makes things for you.

Some features to look for:

• Mobile app (for policy access, bill pay, or submitting claims)

• Online claims filing and claim tracking

• Live chat or virtual assistance

• 24/7 emergency claim support

• Online document access (policy, photos, inventory storage)

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While not essential for everyone, missing tech features may be a deal breaker for those who want digital convenience.

You may rate each company based on overall ease of use or on the number of available support options.

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Customer Service

Customer service includes all non-claim interactions, such as:

• Billing questions

• Policy renewals

• Adding or removing coverage

• Requesting proof of insurance

• General inquiries

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A company with poor customer service can make simple tasks frustrating.

To compare:

• Look for non-claim customer service complaints

• Check third-party review sites

• Review NAIC complaint data (excluding claim-specific complaints)

The fewer complaints a company has, the higher it should be rated.

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Discounts & Long-Term Perks

Some homeowners insurance companies offer long-term incentives that are not part of the initial quote but can reduce your future premiums or add extra value.

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Examples include:

• Claims-free discounts

• Loyalty rewards

• Protective device discounts (security system, smoke detectors, smart home tech)

• New home or renovated home discounts

• Multi-policy discounts (especially home + auto bundles)

• Roof-upgrade or impact-resistant roof discounts

• Loss-forgiveness for long-time customers

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Because discounts vary widely between insurers, compare them side-by-side to determine which company offers the best long-term advantages.

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Final Bit of Advice

By now, you should be able to determine which company is the overall best fit for you. Once you’ve made your choice, here are some final recommendations:

• Read your full policy carefully once you receive it. The terms should now be familiar to you, but verify that everything appears accurate.

• Understand your claim process—every insurer has specific requirements for reporting property damage, documenting losses, and coordinating inspections.

• Learn what to do in an emergency, especially for fire, water damage, storm damage, or burglary. Your insurer may have unique procedures.

• Document and store a home inventory—photos, serial numbers, receipts, and videos. Keep copies stored digitally in case of a severe loss.

• Keep proof of insurance accessible, especially if required by your mortgage lender.

• Pay your premium on time, as missed or late payments may lead to cancellations or higher renewal prices.

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That completes the Other Factors section of your Homeowners Insurance Guide.

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You should also check out our Auto Insurance and Life Insurance guides below.