How To Check Your Homeowner's Insurance Company Rating
By Elizabeth Newberry

A homeowner's insurance company rating lets you, the potential policyholder, know the financial strength of the particular company. Although the insurance business is highly regulated, this information is important because you don't want to purchase homeowner's insurance from a company that is at risk for filing bankruptcy. You may not even want to purchase a policy from a homeowner's insurance company that's been flagged in some way for a current, "iffy" financial situation.
You can find your homeowner's insurance company rating by searching independent research companies. These companies gather and evaluate a plethora of the insurance company's financial information. The rating is designed to let you know the homeowner's insurance company rating, therefore assisting you in your decision to, or not to, do business with a particular company. These companies are usually easily accessible via the Internet, too.
Your state's department of insurance can also provide you with a homeowner's insurance company rating. Too, they can let you know whether or not a particular homeowner's insurance company is licensed to sell insurance in your state. This information is also very useful. If a homeowner's insurance company isn't licensed to do business in your state, your state's department of insurance won't be able to help you with any claim or settlement problems - high rating or not.
Per the abovementioned, homeowner's insurance companies aren't likely to suddenly go bankrupt. However, it's important to know the homeowner insurance company you choose is capable of providing you with the financial compensation necessary to repair or rebuild your home when disaster strikes.
So, if your home catches fire, you want the security of knowing you're covered, right? If your home is broken into, you want the relief of knowing you can replace the expensive home entertainment system you saved so long for, don't you? You can get this security and relief by purchasing a policy from a homeowner's insurance company with a good financial rating.

Source: http://www.isnare.com/?aid=151231&ca=Finances

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