How to find the best homeowners policy at the best price

The best test of an insurer is how well it handles claims.

Consumer Reports heard from thousands of readers about how satisfied they were with their insurer when they had a claim.

"The key is to get your home and its contents protected at the best price," said Tobie Stanger, Consumer Reports' Money editor.

Once your home is assessed, you can determine how much insurance you need. Consumer Reports recommends insuring your home for the full replacement cost.

"You don’t want to be under-insured. In a catastrophe, you may have to completely rebuild," Stanger said.

As for finding the lowest premiums, websites such as Insure.com, NetQuote and SelectQuote make it easy to comparison shop.

Based on the responses of more than 81,000 Consumer Reports members, though, four companies stand out for overall satisfaction, including Erie and Auto-Owners.

Bundling home and auto policies with the same company also could save as much as 30 percent on premiums, and raising the deductible on the policies could save even more.

Consumer Reports says homeowners can also shave premiums by making certain home improvements. Replacing old plumbing, adding a security system and installing water- or gas-leak detection sensors can trim 2 to 6 percent or more from the bill.

Regular homeowners policies do not cover flooding from rising water, such as the damage to countless homes in eastern North Carolina after hurricanes in recent years.

The flood insurance premium for a low to moderate risk property – those account for about a quarter of flood damage claims – is about $325 a year, according to Consumer Reports.