[Jungle George]

Hi all!!

I have a question regarding home insurance for the "economists" in the group.

My policy is up in June & the current company I have is renewing me. My cousin got dropped from her company & just renewed with another company. Her rate went from $3800.00 a year to $1300.00 a year. Granted, her house was re-done from the 2004 hits we got whereas I had no damage.

I asked my agent about the "reputability" of the company my cousin went with. Her answer was that my company had stopped writing new policies whereas my cousin's company is writing tons of new policies...meaning (to her) that my company has a "game plan" in place in case of a disaster as opposed to my cousin's company maybe "biting off more than they could chew".

In plain english, if a devastating hurricane hit, my company would be able to pay out on policies whereas my cousin's company may not have the money to.

Does anybody have any takes on this?? Like all of us, I would like to save money on insurance, but not at the risk of being left in the cold!! My agent says both companies are backed by the State of Florida...does this make a difference??

I may be a great budgeter, but an economist I'm not!! I am getting a home inspection next week to get reductions on my insurance no matter which company I choose.

Thanks for any help & have a great day!!

George

[Klaatu_00]

The policies being backed by the State just means that if your insurance company goes belly-up and can't pay their outstanding claims - the Florida Insurance Guaranty Association will cover up to a certain amount. Here is the wording from the FIGA website:

If your insurance company has been declared insolvent, all covered claims will be paid by FIGA. The maximum amount FIGA will cover is $300,000 with special limits applying to (1) damages to structure and contents on homeowners’ claims and (2) on condominium and homeowners’ association claims. For damages to structure and contents on homeowners’ claims the FIGA cap is an additional $200,000. For condominium and homeowners’ association claims the cap will be $100,000 multiplied by the number of units in the association. No claim will be paid in excess of this cap. All claims are subject to a $100 deductible over and above any deductible identified in your policy.

In my opinion, the biggest reason to stay with a highly-regarded company is, if a big storm hits, and you are in one of these companies, you are going to be waiting a long time to see any money.

Can I ask which company you have & which you are looking at? Also, check out demotech.com to see the financial health of the companies you are considering.

[Jungle George]

Originally Posted by Klaatu_00

The policies being backed by the State just means that if your insurance company goes belly-up and can't pay their outstanding claims - the Florida Insurance Guaranty Association will cover up to a certain amount. Here is the wording from the FIGA website:

If your insurance company has been declared insolvent, all covered claims will be paid by FIGA. The maximum amount FIGA will cover is $300,000 with special limits applying to (1) damages to structure and contents on homeowners’ claims and (2) on condominium and homeowners’ association claims. For damages to structure and contents on homeowners’ claims the FIGA cap is an additional $200,000. For condominium and homeowners’ association claims the cap will be $100,000 multiplied by the number of units in the association. No claim will be paid in excess of this cap. All claims are subject to a $100 deductible over and above any deductible identified in your policy.

In my opinion, the biggest reason to stay with a highly-regarded company is, if a big storm hits, and you are in one of these companies, you are going to be waiting a long time to see any money.

Can I ask which company you have & which you are looking at? Also, check out demotech.com to see the financial health of the companies you are considering.

Thanks for the info!! I'll have to check the links you posted & start reading!!

The company I have now is Northern Capitol & the one my cousin got that I am looking into is Universal.

That's why I am asking for other opinions seeing as I have my "gut" reaction already...

[MyHomeIsInOcala]

I have to find a new Ins. Carrier too... we did get a letter of non-renewal as well. Grrrrr

I have never had so much trouble with HOI on any of our other homes, only this one in FL.

I wonder if it is my flat roof???

[Jungle George]

Originally Posted by MyHomeIsInOcala

I have to find a new Ins. Carrier too... we did get a letter of non-renewal as well. Grrrrr

I have never had so much trouble with HOI on any of our other homes, only this one in FL.

I wonder if it is my flat roof???

From what I hear insurance in Florida's a crap-shoot!! There seems to be no rhyme or reason...

A friend of ours has a flat roof & she's still with her original company of 19 years....go figure!!

Good luck navigating through Insuranceland!!!

[MyHomeIsInOcala]

Thanks JG I need it!!!