Now that you’ve confirmed that the insurance company you are eyeing is not a ‘scam, it’s time to take a look at the financial strength of the insurer. Make certain that it maintains sufficient reserves in order to pay claims in the event of large catastrophic disasters. There are also insurance rating services that rank the financial strength of insurance companies .
It also advisable for you to ask your neighbors. You may find that a lot of your neighbors insure with a particular company that has a good track record with respect to payment of claims, and generally has decent premium rates for your neighborhood.