When you're looking for home insurance, you have to compare both companies and rates. After all, a great home insurance rate from a company that doesn't have the financial wherewithal to pay your claims is useless.

Using A.M. Best to Compare Home Insurance
In order to gauge the financial stability of the home insurance company you're considering, you can visit the website of A.M. Best, an insurance rating company. A.M. Best reviews insurance company's financials and determines how likely the company is to be able to continue to pay claims. With that information, they give a letter rating, almost like a grade in school.

The website itself is simple: Just search for the insurance company and look at the grade rating. In general, ratings of A or better are acceptable.

So when you compare home insurance, be sure to check the A.M. Best rating of each of the insurers you find affordable to ensure that the company you choose will be there to pay claims when you need them.

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