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Selective Home Insurance Review

Selective Home Insurance Review

Selective Home Insurance Review

Selective Insurance Group is a New Jersey-based insurance company that provides insurance throughout the United States. Selective is one of the largest insurance companies in the US – providing nationwide coverage and selling polices in all 50 states including Hawaii and Alaska. 

Selective provides automotive, homeowners, business, commercial and flood insurance policies. The company ranks as the #36th largest general insurance company on U.S. soil. Selective specializes in flood insurance and provides flood coverage in all 50 states – they are currently the fifth largest flood insurer in the U.S. by the number of customers. Selective auto and home insurance policies are only available in 25 states (mostly in the Eastern, Southern and Southwestern states).

Company Overview

Selective is one of the oldest insurance companies in the North-East. Selective was founded in 1928 as a fire insurance company and has nearly 100 years in the insurance business. The company was founded as the Selected Risks Indemnity Company and then renamed to Selected Risks Fire Insurance Company. Selective is a publically traded corporation seeing its biggest expansions during the ’30s when the company expanded its fire policies to workers compensation and opened its first branch offices in Washington, D.C. The company merged with another company to form the conglomerate Selected Risks Insurance Company. 

Selective Insurance Group is comprised of 10 large subsidiaries that write their policies in all 50 states:

  1. Selective Way Insurance Company
  2. Selective Insurance Company of New England
  3. Selective Insurance Company Of New York
  4. Selective Insurance Company Of South Carolina
  5. Selective Insurance Company Of The Southeast
  6. Selective Auto Insurance Company Of New Jersey
  7. Mesa Specialty Insurance Company
  8. Selective Casualty Insurance
  9. Selective Fire And Casualty Insurance
  10. Selective Insurance Company Of America

Selective currently employs over 2,300 full-time personnel, while they have a network of over 2,000 licensed agents that sell their policies in every state. Clients can inquire with a local agent to find out about premium options for their home. Selective currently marks a yearly profit of over $2.6B, making it one of the most profitable insurance companies in the U.S. Selective is located in Branchville, NJ.

Selective home insurance policies are available for the following:

  • Homeowners
  • Condominium unit owners
  • Renters/tenants
  • Townhouse owners

Financial Ratings

Selective Insurance is a highly financially stable company; it has one of the highest turnover margins and $2.6B in yearly revenue which makes the company payout on claims fast. Selective was rated by all major financial institutions and the Better Business Bureau. 

A.M. Best, the most reliable financial institution that rates insurance companies based on their financial stability awarded Selective an A – Excellent rating for financial stability. Fitch awards Selective an A+ rating, while S&P awards it an A rating. The Better Business Bureau rates companies based on their financial stability and customer complaint ratio – the BBB currently awards Selective an A+ rating.

HO-3 Plan

Selective Insurance has two HO-3 plans that provide basic coverage and optional adjustability. The basic HO-3 plan is only available for owner-occupied homes (people who reside in their homes – not 2nd homes or vacation rentals). Selective’s HO-3 coverage is available in the following states: Arizona, Illinois, Indiana, Minnesota, New Jersey, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Virginia, and Wisconsin

Selective’s basic HO-3 plan covers the main residence, side structures, personal belongings, liability against lawsuits and medical payments, and more. Selective allows clients to pay online and they are flexible on payments; clients can negotiate how their payment terms and methods. 

Selective Insurance HO-3 provides coverage for the following:

  • The home. The main home is insured at its full market value. Selective provides insurance against most common perils: fires, lightning strikes, hail storms, falling objects, tornadoes, explosions, aircraft damage, weight of snow, home invasions, etc. The main dwelling includes all structures that are attached to the home such as garages and decks. The only excluded policies are earthquake and flood damage which can be added separately. Clients can optionally choose a “Guaranteed Replacement” policy which exceeds their current home value and will guarantee the home is rebuilt at the full rate of the contractor. 
  • The side structures. All side structures on the client’s home are included. This includes detached decks, garages, sheds, workshops, visitor’s homes, animal barns, and more. Selective assigns smaller coverage for side structures compared to the main home but clients can optionally upgrade their coverage. Selective even offers optional coverage for fences and other non-building items. 
  • Personal belongings. All personal belongings in the home that are damaged or stolen are automatically insured. The personal items coverage includes the following: clothing, electronics, furniture, AC units, kitchen/bathroom appliances, silverware, and more. The main exceptions are high-value items such as jewelry, guns, and cash (which can be insured separately as an add-on). 
  • Personal liability. Selective provides liability that includes protection from lawsuits, medical payments and loss of use. If a client is faced with lawsuits from neighbors as a result of an accident or injured on their property – they are entitled to compensation for legal and medical fees. Medical coverage is provided for the immediate family and guests too. 
  • Options (small policies): Clients can optionally purchase smaller policies such as lock replacement, refrigerated food spoilage, water policy backup, credit card/identity fraud backup and more.

Selective Edge

Selective’s main homeowners upgrade is their “Selective Edge” plan that provides coverage for the same as the basic HO-3 plan (main residence, side structures, personal belongings & liability); however, the plan includes numerous guarantees and upgrades:

  • Guaranteed replacement cost. If a client wishes to be 100% secure their home will be re-built in case it’s completely destroyed, this policy will cover them for the full reconstruction costs of their new home – the policy accounts for inflation, and covers clients for higher amounts than their original home value. The basic package only provides coverage for the estimated home market value, and if clients fall short of that they’ll have to pay their repairs out of pocket. Guaranteed Replacement Policy states that a client is entitled to a new home irrespective of how much it costs – auditors won’t be sent out.
  • Loss deductible waiver. If a client’s home is completely destroyed, the loss deductible waiver will ensure that the company will waive their homeowners deductible – under the regular plan that deductible applies irrespective of damages.
  • Water damage backup. This policy provides guaranteed repair cost coverage for all water damage. If the sump pump overflows and floods the basement or lower levels, clients will be insured for all repairs and water drainage costs.
  • High-value items. Clients can insure all high-value items in the home that are not covered under the regular personal belongings policy. High-value items such as watches, gold, cash, weapons, furs, antiques, artwork, rugs, and more. Virtually all items that exceed an average of $10,000 will be covered under this policy.
  • Non-building structures. Selective’s unique add-on policy that provides coverage for all structures on that property that are not buildings. This includes structures such as walkways, rock walls, decorations, fences, and more. This policy provides coverage for high-value homes that have a lot of landscaping and decorations to insure.

Customer Reviews

Selective receives positive reviews – clients praise their fair policy rates and excellent customer service. One client said that she’d never filed a claim before and didn’t know what to expect but Selective’s claims department guided her through the process and paid her in one week. Customers say Selective approves claims very fast and they payout within the first week. One reviewer claimed that they take initiative and call you upon a claim, and they call before a policy is due. Clients say their customer service looks for ways to reduce premiums for them. They receive praise for helping out clients with low premiums and fast claims processing.

Negative reviews for Selective come from clients who are dissatisfied with their payment processing and renewal policies. One reviewer said he had a hard time converting to automatic monthly withdrawal from checking and was charged for the service even though this is a basic switch. Most negative reviews seem to stem from the way the company handles premium payments; however, the overwhelming tone of the reviews is positive and clients seem to resolve their issues on time.

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