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What happens if my home insurance company goes out of business?
I found a home insurance company with low premiums and deductibles. It seemed too good to be true and it was. Six months after purchasing home insurance, my insurance company went out of business. I didn’t even realize this was in the realm of possibilities. What happens when a home insurance company goes bust?
Talullah Blanco · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I’m sorry to hear that happened! Thankfully, if your insurance company goes bankrupt, your home still has protection. Your state’s guaranty association will use the company’s assets and state guaranty funds to pay any outstanding claims.
Like any other business, home insurance companies can go bankrupt, causing issues for policyholders. Before purchasing a
home insurance
policy, you should assess the health of an insurance company by:- Checking financial strength ratings. Independent agencies rate insurance companies’ financial stability and ability to pay out claims.
- Assessing your risk. If you live in a high-risk area, a smaller insurance company may not have the funds available to pay in the event of a large-scale peril, like wildfires.
- Reviewing customer complaints. If customers are dissatisfied with their insurance carrier, they’ll leave a bad review. Customer satisfaction can help you assess a company’s viability.
If you’re looking for a new insurance company,
Jerry
can provide you with competitive quotes in under a minute. Swapping is just as effortless. To save even more money, Jerry can help you bundle your home and auto policies for maximum savings.MORE: [How to decipher home insurance quotes] (
https://getjerry.com/advice/how-to-decipher-home-insurance-quotes-by-brady-klopfer
)View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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