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Founders Home Insurance Review

Founders Home Insurance Review

Founders Home Insurance Review

Founders Insurance Comapny is one of America’s long-standing insurance companies, with a history dating back to the early 20th century – the first Founder’s branch was named Mutual Fire Insurance Company and was started in 1901 in the state of Iowa. Founders Insurance currently operates in 5 states and their main base is the Illinois market. Founders provide all-around insurance for people in the Chicago area including auto insurance, home insurance, and commercial/business insurance. Founders is best known as the premier fire insurance company in the state of Illinois, but it has one of the widest coverages that stretch for all insurable possessions: homes, automobiles, commercial properties, rental units and more. Founders continually expand its services to the states it services, but the company retains its roots and by offering insurance to everyone without major checks.

Founders do not impose a high entry criterion – their specialty is high-risk insurance and their insurance is available to virtually every homeowner in the state of Illinois, provided they reside in their property and don’t use the property as a 2nd home/seasonal rental. Founders provide multiple policies for homeowners and auto-owners, Founders plans can be merged together and ‘bundle’ packages come with discounts. Founders is licensed to operate in 47 states including Washington D.C., however, it only retains offices in 5 states, while their biggest office is located in the Chicago, IL area. 

Founders main focus is on auto insurance and they’ve recently expanded to commercial auto and liquid liability, but their main HO-3 homeowners plans are very popular. Founders policies can be bought in 47 states via a network of agents that sell their premiums – quotes can be obtained by calling the company directly or inquiring at your local agent. The website does not offer immediate premium calculations, but users can receive a quote based on the zip code and the condition of the home. Founders Insurance is located in Des Plaines, IL.

Founders Insurance policies provide coverage for the following:

  • Homes (only in Illinois state)
  • Condominium units
  • Townhouses
  • Rental properties

Financial Rating

Founders obtained an “A+” rating for financial stability by the Better Business Bureau, although the company receives a high number of complaints (due to being a large corporation), Founders hasn’t experienced any financial difficulties. Most complaints are solved in due time, and Founders being one of the largest insurance companies in the continental U.S. is rated highly for financial stability.

Home Insurance

Founders specialize in auto insurance, but its home insurance plans are the most popular in Illinois. In fact, Founders exclusively services the Illinois area for their home insurance policies. Founders stand out among home insurance companies due to its ‘no-check’ policy – the company does not require a credit check for homeowners who reside in their homes. Technically, even applicants with a bad credit history could be eligible for an insurance policy, and those clients would be treated no different than clients with a perfect credit history. Founder’s most popular home insurance plan is their HO-3, which they offer with a number of add-ons. The company covers older homes with limited coverage as well.

HO-3 Home Insurance Policy

Founder’s home insurance policy is only available to homeowners in Illinois. The HO-3 homeowners policy does not require any prior credit checks or insurance proof. Founders HO-3 provides coverage from $75,000 up to $500,000 for all damages/replacements in the case of an accident. Clients can choose from a “Standard HO-3” and “HO-3 Special” plan.

  • HO-3 coverage from $75,000 to $500,000 in damages
  • Risk-factors such as pets and space heaters are accepted
  • Open doors policy – No credit checks required
  • No proof of past insurance required

The HO-3 policy includes animal liability and pet owners are encouraged to apply. It also includes personal liability in case the client is injured in their homes. Similar to the standard HO-3, HO-6 policies are available to homeowners with the same rights (and no age restrictions), however, the maximum payout for condos is $300,000.

Rent Insurance

Founder’s rental insurance is designed for tenants who wish to add an extra layer of security, in order to protect their livelihood and personal belongings. The company provides coverage for interior damage, personal liability/medical bills and damage to other’s property that was caused by you. There are no credit checks or past insurance proofs necessary.

  • Open doors policy – No credit checks required
  • No past insurance required
  • Insurance on personal belongings from $30,000 up to $300,000

Personal liability coverage for both plans (the homeowners and condo owners) plans are capped at $300,000. Founders offer discounts for all home insurance plans if customers sign up for one of their auto-insurance plans – they offer bundle discounts. 

Customer Reviews

Founders receives overwhelmingly negative reviews, for both their home insurance and auto insurance policies. Customers complain that the premiums fluctuate too often and that they can be dropped from their policy for unknown reasons. Customer support also takes long to respond to claims, which can create problems for people who need to repair their homes immediately. The few positive reviews tend to claim that customer service is top-notch, although the clients’ experiences vary by agent. 

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