USAA (including its A+ affiliate on the list, USAA Casualty Insurance Company) coverage is available only to military personnel and their children.
The third A+ rated insurer on the list is the Inter-Insurance Exchange of the Automobile Club. This company is affiliated with the nationwide auto club, AAA, offering many types of insurance products in addition to auto and homeowners insurance.
Alfa Insurance Corp. and its A- affiliate on the list, Alfa Mutual, operate in 13 states in the Midwest and Southeast including Alabama, Mississippi, Georgia, Ohio and Florida. The companies are part of a larger group containing a total of nine affiliates.
If you are more comfortable going with a household name, the largest insurers in the nation are also well-rated. Here are the insurers that wrote at least $1 billion in homeowners' premiums nationwide in 2007.
If you live in a coastal area, you will likely have a difficult time finding affordable coverage even from the major carriers. You may have to purchase a policy from a state-run program or a start-up company that has recently entered the market. In the latter case, you will be going with a company with no experience in the market making it difficult or impossible to evaluate its financial strength.
This won't matter much if we're lucky enough to survive a third year without a major hurricane, but in the case of a costly disaster, the company could very well not have the resources to pay claims.
TheStreet.com Ratings evaluates the financial strength of insurance companies based on capitalization, profitability, reserve adequacy, liquidity and operational stability. The ratings are updated each quarter based on statutory financial statements filed with state regulators. All ratings are available free of charge on the
Insurance Ratings Screener.
Melissa Gannon
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