Major auto insurance companies like Progressive, Geico, GMAC, 21st Century, & Esurance do not sell their own homeowners insurance, and partner with other insurance companies to sell property insurance, like renters insurance, condo insurance, & home insurance.
Since originally writing this review, I have written a more comprehensive review of Homesite insurance, including its more recent complaint record, and how it compares to the complaint record of competing home insurance companies. Check out my new Homesite Insurance review!
One homeowners insurance company, companies like Geico, Progressive, & GMAC use, and have used, in some states, is Homesite Insurance.
Homesite insurance, founded in 1997, specializes in selling homeowners, condo, & renters insurance directly to the public.
Homesite insurance has a small market share of the homeowners insurance market nationally, so it is not included in JD Power’s National Homeowners insurance study, and I have not listed information about it on my website.
However, Geico & Progressive are the fastest growing auto insurance companies, and Progressive is promoting their “bundling” discount to buy both auto & home insurance through them, so more consumers in the future may insure with Homesite insurance, through Homesite’s marketing relationship with these auto insurance companies.
I think it is time I provide some important information about Homesite insurance, like I do for the leading insurance companies on my website, which you can see by clicking the link below.
One concern I have with Homesite insurance is there is only one rating agency, Demotech, evaluating the financial strength of the company to be able to pay claims. The leading rating agency for insurance companies, AM Best, does not rate them.
Another concern I have with Homesite Group’s homeowners insurance is the high complaint ratios for most of its subsidiary companies, which you can see on the list below.
You will have to decide for yourself if Homesite insurance is right for you. It pays to shop with all the leading insurance companies to save money, but sometimes you don’t get the best price by having your auto & homeowners insurance together. And when it comes to something as important as your home, you want to make sure you are getting the coverage & service you need, too.
There are plenty of individual stories on the Internet of problems with claims or service for every insurance company. There are certainly plenty of complaints on the web about big rate increases and poor claims service regarding Homesite insurance.
Yet reading a lot of complaints on the Internet does not inform you if the majority of customers are happy with the insurance company, since they don’t write about it on the Internet.
Even a website full of complaint stories are anecdotal and not statistically significant. You need to look at large numbers to really spot a trend in poor service. This is why I provide the national complaint ratios for insurance companies on my website.
However, number scores may not be simple and easy for people to interpret, even though I explain them on my website.
I devised a letter grade system, based on the complaint ratios, to make it as easy as possible to find the best auto & home insurance companies and avoid the worst insurance companies.
Here are my letter grades:
Note: After a few years of reviewing complaint statistics, I’ve changed my rating system to a better than average, average, and worse than average rating scale, which I think is more useful & fair in assessing an insurance company’s complaint record. A small difference in the number of complaints can make an “A” company go to a “C” company from year to year, so I think my old rating system is not helpful for understanding a positive or negative trend in complaints for a company. Since originally writing this review, I have written a more comprehensive review of Homesite insurance with my new rating system, including its more recent complaint record, and how it compares to the complaint record of competing home insurance companies. Check out my new Homesite Insurance review!
A+ = Insurance companies with complaints 25% or less than the average insurance company.
A = Insurance companies with complaints 50% or less than the average insurance company.
B = Insurance companies with complaints 90% or less than the average insurance company.
C = Insurance companies with complaints from 90% to 110% of the average insurance company.
D = Insurance companies with complaints from 110% to 200% of the average insurance company.
F = Insurance companies with complaints over 200% of the average insurance company. Over twice as much as average!
Consider these grades, along with price and other factors (as listed on my website), when choosing an insurance company.
Homesite Insurance has several subsidiary property insurance companies. Make sure you know the correct name of the Homesite Insurance subsidiary company quoting or insuring you, to check the proper complaint grade.
Homesite Insurance Company’s 2010 Complaint Ratings for Homeowners Insurance
Since originally writing this review, I have written a more comprehensive review of Homesite insurance, including its complaint record from 2009 to 2012, and how it compares to the complaint record of competing home insurance companies. Check out my new 2013 Homesite Insurance review!
Homesite Indemnity Company = F (5.21)
Homesite Insurance Company = F (2.14)
Homesite Insurance Company of California = F (2.34)
Homesite Insurance Company of Florida = F (4.11)
Homesite Insurance Company of Georgia = F (3.59)
Homesite Insurance Company of Illinois = B (.81)
Homesite Insurance Company of New York = A+(No complaints for 2010) but F for 2009 (3.06), & D for 2008 (1.67)
Homesite Insurance Company of the the Midwest = F (2.05)
Homesite Lloyd’s of Texas = A+ (no complaints last 3 years)
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