Home Insurance Question

[WannaFly]

So, I have state farm for my insurance. What I pay is a bit higher than i'd like and i figured i'd start shopping around. I found this nice website that is for florida only, and below are some estimated prices for companies. http://www.shopandcomparerates.com/HOCompareRates.htm

Note, State farm is 25th on the list. It's pretty accurate to what I pay. My question is, what is everyones opinion in going with the "smaller companies" that could save me 200-500/year. I've always had the thuogh of going with larger companies for security, but these companies are all backed by the state insurance board, etc. i'm worried if I go with one of these companies and a hurricane does tear through, they might not be able to pay out all the claims or be slower, etc. I havent found much info on the smaller companies except ratings that don't seem to mean much in the industry.

1 Tower Hill Select Insurance Company $783 $515
2 Homewise Preferred Insurance Company $792 $690
3 Tower Hill Preferred Insurance Company $805 $552
4 United Property & Casualty Insurance Company, Inc. $818 $581
5 Landmark One Insurance Company $853 $632
6 Tower Hill Prime Insurance Company $868 $626
7 Edison Insurance Company $895 $644
8 Florida Peninsula Insurance Company $902 $542
9 Liberty Mutual Fire Insurance Company $990 $660
10 Olympus Insurance Company $996 $683
11 First Floridian Auto and Home Insurance Company $1,028 $594
12 Federated National Insurance Company $1,035 $741
13 Universal Property & Casualty Insurance Company $1,055 $630
14 Universal Insurance Company of North America $1,058 $705
15 Sunshine State Insurance Company $1,065 $468
16 Fidelity National Property & Casualty Insurance Company $1,068 $938
17 Avatar Insurance $1,072 $828
18 Florida Farm Bureau Casualty Insurance Company $1,089 $588
19 Allstate Floridian Indemnity Insurance Company $1,108 $845
20 Frontline Homeowners/First Protective Insurance Company $1,187 $837
21 American Traditions Insurance Company $1,201 $1,028
22 American Integrity Insurance Company of Florida $1,206 $921
23 St. Johns Insurance Company, Inc. $1,216 $800
24 Citizens Property Insurance Corporation $1,246 $990
25 State Farm Florida Insurance Company $1,250 $888
26 Security First Insurance Company $1,281 $1,058
27 ASI Preferred Insurance Company $1,383 $1,044
28 Southern Oak Insurance Company $1,387 $1,170
29 Royal Palm Insurance Company $1,395 $1,101
30 Southern Fidelity Insurance Company $1,400 $1,261
31 Auto Club Insurance Company of Florida $1,409 $943
32 First Community Insurance Company $1,486 $665

 

[sactoking]

Originally posted by: WannaFly
1 Tower Hill Select Insurance Company $783 $515 NR-5: Not Rated
2 Homewise Preferred Insurance Company $792 $690 NR-1: Insufficient Data
3 Tower Hill Preferred Insurance Company $805 $552 B5 Negative
4 United Property & Casualty Insurance Company, Inc. $818 $581 NR-1: Insufficient Data
5 Landmark One Insurance Company $853 $632 NR-1: Insufficient Data
6 Tower Hill Prime Insurance Company $868 $626 B6 Negative
7 Edison Insurance Company $895 $644 NR-5: Not Rated
8 Florida Peninsula Insurance Company $902 $542 NR-1: Insufficient Data
9 Liberty Mutual Fire Insurance Company $990 $660 A15 Stable
10 Olympus Insurance Company $996 $683 No Result
11 First Floridian Auto and Home Insurance Company $1,028 $594 A- 8 Stable
12 Federated National Insurance Company $1,035 $741 NR-1: Insufficient Data
13 Universal Property & Casualty Insurance Company $1,055 $630 NR-5: Not Rated
14 Universal Insurance Company of North America $1,058 $705 NR-2: Insufficient Size and/or Experience
15 Sunshine State Insurance Company $1,065 $468 NR-5: Not Rated

I gave you the AM Best ratings for the cheapest 15. The vast majority sound like new operations in Florida, probably picking up market slack with the big insurers pulling out of the market. Of the companies that actually get a rating, here's what they mean:

[letter][number] [outlook]

[letter] = general quality. A/A- is 'Excellent'. B/B- is 'Fair'.
[number] = policyholders' surplus. 5 is between 10 and 25 million dollars. 6 is between 25 and 50 million dollars. 8 is between 100 and 250 million dollars. 15 is 2,000 million or greater.
[outlook] = long-term business and financial prospects.

Of the cheapest 15, First Floridian and Liberty Mutual are the only two with enough information and quality to be considered 'safe'. However, since the Florida DOI has a liquidation fund, if you go for a cheaper option and the company goes under, the DOI will step in to pay any claims (if necessary).

 

[Cawchy87]

Most smaller insurance firms if not all smaller insurance firms are re-insured by another larger insurer in a different insurance business against a catastrophe. I would be more concerned about the company going under due to financial reasons than a catastrophe.

 

[WannaFly]

sactoking:
Thanks, I looked a few of them up earlier and had only found Not rated. The liquidation fund you mention is interesting. I might try to go with one of these cheaper companies then.

Cawchy87: Thanks for that clarification, I'm also concerned about them going under also.

 

[SphinxnihpS]

Originally posted by: WannaFly
So, I have state farm for my insurance. What I pay is a bit higher than i'd like and i figured i'd start shopping around. I found this nice website that is for florida only, and below are some estimated prices for companies. http://www.shopandcomparerates.com/HOCompareRates.htm

Note, State farm is 25th on the list. It's pretty accurate to what I pay. My question is, what is everyones opinion in going with the "smaller companies" that could save me 200-500/year. I've always had the thuogh of going with larger companies for security, but these companies are all backed by the state insurance board, etc. i'm worried if I go with one of these companies and a hurricane does tear through, they might not be able to pay out all the claims or be slower, etc. I havent found much info on the smaller companies except ratings that don't seem to mean much in the industry.

1 Tower Hill Select Insurance Company $783 $515
2 Homewise Preferred Insurance Company $792 $690
3 Tower Hill Preferred Insurance Company $805 $552
4 United Property & Casualty Insurance Company, Inc. $818 $581
5 Landmark One Insurance Company $853 $632
6 Tower Hill Prime Insurance Company $868 $626
7 Edison Insurance Company $895 $644
8 Florida Peninsula Insurance Company $902 $542
9 Liberty Mutual Fire Insurance Company $990 $660
10 Olympus Insurance Company $996 $683
11 First Floridian Auto and Home Insurance Company $1,028 $594
12 Federated National Insurance Company $1,035 $741
13 Universal Property & Casualty Insurance Company $1,055 $630
14 Universal Insurance Company of North America $1,058 $705
15 Sunshine State Insurance Company $1,065 $468
16 Fidelity National Property & Casualty Insurance Company $1,068 $938
17 Avatar Insurance $1,072 $828
18 Florida Farm Bureau Casualty Insurance Company $1,089 $588
19 Allstate Floridian Indemnity Insurance Company $1,108 $845
20 Frontline Homeowners/First Protective Insurance Company $1,187 $837
21 American Traditions Insurance Company $1,201 $1,028
22 American Integrity Insurance Company of Florida $1,206 $921
23 St. Johns Insurance Company, Inc. $1,216 $800
24 Citizens Property Insurance Corporation $1,246 $990
25 State Farm Florida Insurance Company $1,250 $888
26 Security First Insurance Company $1,281 $1,058
27 ASI Preferred Insurance Company $1,383 $1,044
28 Southern Oak Insurance Company $1,387 $1,170
29 Royal Palm Insurance Company $1,395 $1,101
30 Southern Fidelity Insurance Company $1,400 $1,261
31 Auto Club Insurance Company of Florida $1,409 $943
32 First Community Insurance Company $1,486 $665

As an ex-property claims adjuster I can guarantee you you will NOT be happy with the SERVICE (paying for your damaged stuff phase of insurable loss), if you go with a SUBSTANDARD carrier.

Also when a financially unsound carrier goes into receivership/rehabilitation, you are not entitled to compensation on all aspects of the contract you agreed to with them, but are at the mercy of state laws governing transition.

I would highly recommend getting coverage from a company you see advertise on TV, or even better if you qualify, Chubb, Fireman's Fund, or AIG Private Client Group.

It may cost you less, but when you buy insurance what you are really buying is peace of mind that in the event of catastrophe, you will be able to recoup your losses, so it is VERY important that you get a carrier that won't make your life a living hell in such an event, and that is exactly how substandards operate.

 

[sjwaste]

Travelers too, although I don't think they write in FL anymore.

 

[WannaFly]

Originally posted by: SphinxnihpS
As an ex-property claims adjuster I can guarantee you you will NOT be happy with the SERVICE (paying for your damaged stuff phase of insurable loss), if you go with a SUBSTANDARD carrier.

Also when a financially unsound carrier goes into receivership/rehabilitation, you are not entitled to compensation on all aspects of the contract you agreed to with them, but are at the mercy of state laws governing transition.

I would highly recommend getting coverage from a company you see advertise on TV, or even better if you qualify, Chubb, Fireman's Fund, or AIG Private Client Group.

It may cost you less, but when you buy insurance what you are really buying is peace of mind that in the event of catastrophe, you will be able to recoup your losses, so it is VERY important that you get a carrier that won't make your life a living hell in such an event, and that is exactly how substandards operate.

Thanks, That's some good information I was looking for. The statement you said about advertising on TV is pretty much my train of thought on this subject and wanted to see if I was being unrealistic.

I dont believe I qould qualify for any of the ones you listed.

 

[SphinxnihpS]

You are most welcome.

 

[imported_weadjust]

I have been a property claims adjuster for 18 plus years. It's been a few years since I have worked storms in Fla. Alot of adjusters refuse to work for Citizens Property, so cross them off the list. I have never heard anything positive about Citizens.

I have also done some work for Tower Hill in the 1990's and they were good co. to work for and paid their policy holders per the policy provisions. They have been around for 30 plus years and they write a lot of mobile home/manufactureed housing business in FL. The VP of claims at Tower Hill used to be my boss at another insurance co. when I was a staff adjuster.

The only other one that I am familiar with is State Farm. I have all my insurance with State Farm however I don't live in Fla or in a coastal region.

 

[akshatp]

Go with AIG

 

[PrinceofWands]

My rule of thumb is to always go with the smallest company capable of handling a good or service safely and adequately...however I'm pretty much alone in my outlook on things, so don't listen to me.