Taking a bath on homeowners insurance in Tampa (Tallahassee: foreclose, mortgage)

[mickeyfinn]

Here we go again. We got dropped by Allstate, "the good hands (in your pocket) people."

Allstate simply stopped writing in our area. We never had a claim, never.

Anyway, we searched, researched and shopped around and found a company with reasonable rates.

Just got this email a couple of days ago from our agent:

"We would like to advise you of some changes to your homeowners insurance. Your home is currently insured with Northern Capital Insurance Company. We have been notified that they are no longer "A" rated with Demotech and are therefore cancelling all of their policies effective 05/30/10."

"Some changes," indeed. Six weeks from now we will be uninsured! Quite a change, isn't it?

An "A" rating designates "exceptional solvency," i.e., they have enough capitol to handle even a major disaster.

Northern Capitol was "A" rated less than 6 months ago.

No longer A rated? The real truth of it is, they are insolvent and have been ordered by the state of Florida to stop writing policies and accepting new clients and must divest themselves of ALL their clients and pay all their clients a pro-rated refund.

How in the hell did they go from an "A" rating to insolvent in such a short time?

The company is in "rehabilitiation," according to the State Insurance Commissioner's Office.

This makes me sick. It really does. Anyone know of any GOOD, STABLE (homeowners) insurance companies that are writing in Tampa these days?

We've lived in Florida a little over 30 years now. The last eight or so of those years have mounted disappointment on top of disappointment.

This state used to be a pretty fine place to live but now it has some serious problems and they all seem to flow from a corrupt government in Tallahassee.

[Mike1306]

Are you going to be uninsured or are they transferring your policy?

I had gone from State Farm to Citizens to Magnolia and back to Citizens. I hear people complain about Citizens but don't understand why since most people never have to file a claim. I pay $1345 for $300,000 in coverage. I was much lower but switched back to full sinkhole coverage instead of catastrophic.

[FloridaKash]

Originally Posted by mickeyfinn

Here we go again. We got dropped by Allstate, "the good hands (in your pocket) people."

Allstate simply stopped writing in our area. We never had a claim, never.

Anyway, we searched, researched and shopped around and found a company with reasonable rates.

Just got this email a couple of days ago from our agent:

"We would like to advise you of some changes to your homeowners insurance. Your home is currently insured with Northern Capital Insurance Company. We have been notified that they are no longer "A" rated with Demotech and are therefore cancelling all of their policies effective 05/30/10."

"Some changes," indeed. Six weeks from now we will be uninsured! Quite a change, isn't it?

An "A" rating designates "exceptional solvency," i.e., they have enough capitol to handle even a major disaster.

Northern Capitol was "A" rated less than 6 months ago.

No longer A rated? The real truth of it is, they are insolvent and have been ordered by the state of Florida to stop writing policies and accepting new clients and must divest themselves of ALL their clients and pay all their clients a pro-rated refund.

How in the hell did they go from an "A" rating to insolvent in such a short time?

The company is in "rehabilitiation," according to the State Insurance Commissioner's Office.

This makes me sick. It really does. Anyone know of any GOOD, STABLE (homeowners) insurance companies that are writing in Tampa these days?

We've lived in Florida a little over 30 years now. The last eight or so of those years have mounted disappointment on top of disappointment.

This state used to be a pretty fine place to live but now it has some serious problems and they all seem to flow from a corrupt government in Tallahassee.

Find an independent insurance agent or broker. The beauty of an independent is they shop several companies for you and get you the best deal for your money. The additional bonus is, if you are dropped by an insurance company the independent agent or broker does the work to find you a new carrier.

[mickeyfinn]

Originally Posted by Mike Peterson

Are you going to be uninsured or are they transferring your policy?

Here's your answer. In brief, they pulled the rug out from under us. Here's a copy the email notice we received:

We would like to advise you of some changes to your homeowners insurance. Your home is currently insured with Northern Capital Insurance Company. We have been notified that they are no longer "A" rated with Demotech and are therefore cancelling all of their policies effective 05/30/10. You will be receiving a pro-rated refund for your remaining policy period.


American Integrity will be sending an offer to insure your home effective 05/30/10-05/30/11. We are actively shopping insurance rates for you with other companies so that we can compare them to the offer you will be receiving from American Integrity. You will have the option of accepting the American Integrity offer or proceeding with a new application thru another company.

We will continue to be your agent with American Integrity. American Integrity has a Financial Stability Rating of "A" with Demotech. (I wonder how long THIS company will be "A" rated).


We apologize for any inconvenience this may cause. If you have any questions or concerns, please do not hesitate to contact me directly.


So no, as you can see, it's not a "transfer". And I would wager a lot of money, the "offer" from the other company will be at a substantially higher rate.


I'm really tired of of this stuff.

[Davachka]

We are going with a new home insurer this year....their rates are great, under $2k year for $600K policy. I think they're called Authority Insurance, local in FL they looked up several policies and showed us, we picked which we wanted to go with, if you want to look them up. Good luck.

[Negotiator75]

Originally Posted by mickeyfinn

Here we go again. We got dropped by Allstate, "the good hands (in your pocket) people."

Allstate simply stopped writing in our area. We never had a claim, never.

Anyway, we searched, researched and shopped around and found a company with reasonable rates.

Just got this email a couple of days ago from our agent:

"We would like to advise you of some changes to your homeowners insurance. Your home is currently insured with Northern Capital Insurance Company. We have been notified that they are no longer "A" rated with Demotech and are therefore cancelling all of their policies effective 05/30/10."

"Some changes," indeed. Six weeks from now we will be uninsured! Quite a change, isn't it?

An "A" rating designates "exceptional solvency," i.e., they have enough capitol to handle even a major disaster.

Northern Capitol was "A" rated less than 6 months ago.

No longer A rated? The real truth of it is, they are insolvent and have been ordered by the state of Florida to stop writing policies and accepting new clients and must divest themselves of ALL their clients and pay all their clients a pro-rated refund.

How in the hell did they go from an "A" rating to insolvent in such a short time?

The company is in "rehabilitiation," according to the State Insurance Commissioner's Office.

This makes me sick. It really does. Anyone know of any GOOD, STABLE (homeowners) insurance companies that are writing in Tampa these days?

We've lived in Florida a little over 30 years now. The last eight or so of those years have mounted disappointment on top of disappointment.

This state used to be a pretty fine place to live but now it has some serious problems and they all seem to flow from a corrupt government in Tallahassee.

It is because there are 8-9 named storms predicted this year with most forming into hurricanes. This should be considered illegal.

[HughMcs]

I just read in today's TBE/Times that the state legislature is considering allowing insurance companies to raise rates 10-20% every year. I was thinking of buying a second (retirement) home in the Pinellas/Pasco area. I really don't want to buy a house that I can afford only to be unable to pay several thousands of dollars to insure the house. Have the mortgage companies been foreclosing on homes that have lost insurance?

[FloridaKash]

I think the state needs to provide a 'public option' for homeowners insurance. If these insurance companies are making so much money, aren;t the citizens of Florida willing to contribute to a state insurance fund? Basically the state would be your insurance company. They would be able to charge less for premiums, since these premiums make an insurance company so much money. Of course, should something terrible happen the state may go bankrupt and not be able to pay claims. Who is up for the risk!? One of two things could happen. State could make money, state could loose it butt. Oh wait, nevermind, bad idea. I forget that politicians would eventually reach into the insurance fund and spend it on something else. Then once claims started rolling in there would be no money.

[gypsychic]

Originally Posted by AlaskaKash

I think the state needs to provide a 'public option' for homeowners insurance. If these insurance companies are making so much money, aren;t the citizens of Florida willing to contribute to a state insurance fund? Basically the state would be your insurance company. They would be able to charge less for premiums, since these premiums make an insurance company so much money. Of course, should something terrible happen the state may go bankrupt and not be able to pay claims. Who is up for the risk!? One of two things could happen. State could make money, state could loose it butt. Oh wait, nevermind, bad idea. I forget that politicians would eventually reach into the insurance fund and spend it on something else. Then once claims started rolling in there would be no money.

We already have that - it is Citizen's. One out of 4 policy holders in Florida is insured by the state Citizens ins. They are not cheap, either.

To answer another poster, if you let ins. lapse, a mortgage company will come up with a lender's policy (expensive) which you MUST pay, and yes, if you don' they may foreclose. The insurance situation is the ONLY thing about living here in my beautiful state that is a real problem to me, it is just ridiculous.

And florida is no where near the only state that has hurricanes or disasters, so it is really discriminatory in my mind!

[LKJ1988]

Best to pay cash for a house then ya don't have to deal with the rip off Ins companys. I am happy and Ins free.