After Hurricane Andrew in 1992, many of the best home insurance companies stopped doing business in Florida. Even more companies stopped writing new business or left the state all together after the 2004 and 2005 hurricanes. Today only a few name brand companies remain to service their existing policy base but for the most part they don't write any new business. What was once a prominent list of over 500 companies has been reduced to a short list of only 40 companies that are still active in Florida. Most of the companies that remain are new start ups with names that most people won't recognize.
With all of the chaos in the Florida home insurance market, what is the best way for you to find the best Florida home insurance companies among the few companies still remaining?
Look for companies that have most or all of the following:
Longevity - companies that have been around longer simply have more experience and better developed systems to write policies and process claims.
Financial Stability - high financial ratings, a large surplus to pay claims, and backup reinsurance from companies that also have high ratings.
Risk Diversification - a core base of policies that include an appropriate mix of newer, inland homes balanced out against older homes that are closer to the Florida coast. The policy base of the company should be distributed geographically around most counties in Florida - not just concentrated near the coast in South Florida counties. Finally it is better to find a company that has expanded its policy base to other states in addition to Florida.
Customer Service - the company must have an outstanding customer service reputation and a record of fast and fair claims processing. In other words when you call them someone quickly answers the phone. If you have a billing question, they have the people skills and the systems to make things right. Following a hurricane, it means that an adjuster will come to visit your home quickly and to assess the damages. And when he leaves, the company quickly values your damages and sends you a check.
Here's what you should to do get the information you need to pick a good Florida home insurance company:
Find out when the company was first licensed on the website of the Florida Office of Insurance Regulation. Select a company that was formed before the hurricanes of 2004 if possible.
Find out the company's NAIC (National Association of Insurance Commissioners) code and use it to investigate the company's financial ratings with AM Best and Demotech. Ask your agent how much surplus the company has available to pay its claims. Don't bother trying to assess the quality of the company's reinsurance - the ratings from Best and Demotech take that into consideration. The company should have a rating of "A" or higher.
Ask your Florida home insurance agent to explain to you how diversified the company's policy base is across Florida and in other states as well. Find out what you can about the type of risks the company is writing. As a general rule, home insurance companies in Florida that have taken out policies from Citizens have a higher risk policy base that must be offset against newer homes that are located in the interior counties of Florida. Pick a company that has spread out it's policies across a large number of Florida counties and into other states as well.
Finally, ask your agent about complaints that have been filed against the company in the past few years. Eliminate any company with a large number of complaints relative to their share of the insurance premium written.
While most of the nationally recognized names have long since left the Florida home insurance market, following the steps above will help you find the best home insurance company in a market with few well recognized names.
How to Select the Best Florida Home Insurance Company in a Market With Few Well Recognized Names Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
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Michael Letcher is a former Fortune 500 executive and a licensed CPA. His on-line buyers guide can help you find, screen, and contact Florida homeowners insurance companies. Find out the secrets to affordable home insurance in his newsletter at => http://www.homeinsurancebuyers.org
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