Hundreds of thousands of Floridians are getting letters from Citizen’s Property Insurance Corporation with a November due date.
Some have the option of remaining with Citizen’s, but others are being moved to a private insurer.
Citizen’s insurance is currently the largest insurer in the state but was never designed to be so big, so the state is trying to move more policies into the private market.
With many of the larger well-known insurers leaving the state, you could end up with a smaller company you’ve never heard of.
If it happens to you, how do you find out more information about a company you might be unfamiliar with?
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When Aaron Peck bought his Belleview home last July, he said he had no idea how difficult it would be to find insurance, so he ended up with Citizen’s.
“They were the only company that we were quoted. There weren’t any other companies,” Peck said.
Just three months later, he got a letter from Citizen’s depopulation unit notifying him that a private-market insurer was willing to insure him.
The renewal premium is not more than 20% greater than Citizen’s, so his current policy is ineligible to to renew with Citizen’s.
“I kind of assumed that we would get that letter in the mail,” Peck said.
What he didn’t expect is that the offer is with Slide Insurance, a company he said he had never heard of. Peck said he has concerns.
“I do. I am worried about if something should happen, how would their response be,” Peck said. “I have not looked into them much as far as the type of company that they are.”
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There are ways to vet your insurer. There are several companies that provide ratings for insurance companies.
Joseph Petrelli is the president of Demotech and said its rating system is a good way for consumers to get a read on the financial stability of their insurer.
“I think consumers will find us to be extremely friendly,” Petrelli said.
On their website, you can go to financial stability ratings, then property and casualty review.
Scroll to the bottom of the page and type in a company name. News 6 put in Slide Insurance.
The company has an “A” rating meaning it “possesses exceptional financial stability related to maintaining surplus as regards policyholders at an acceptable level,” according to the company’s website.
“We have made the decision to limit that initial rating to the level ‘A,’” Petrelli said.
In this case “A” is a good rating, but it’s not the best that would be A Double Prime.
When companies are so new, “A” is the highest rating Demotech will allow, Petrelli said.
The same rating was given to Orion 180 and Orion 180 Select insurance companies, two of the newer companies to enter the state.
“So that the companies will have an opportunity to perform in the marketplace. But concurrently, they are going to be monitored on a regular basis by our team, as are all the other companies we work with,” Petrelli said.
Peck said right now Slide is his only option, but he is concerned that many of the larger better-known insurers are leaving the state.
“If they can not stay here, what kind of companies are being brought in to take over these policies?” Peck said.
We highlighted Demotech but there are several companies that offer a similar service. A.M. Best Company, Inc, Fitch Ratings, Kroll Bond Rating Agency, Inc, Moody’s Investor Services and Standard & Poor’s Insurance Ratings Services.
Don’t rely only on what the insurance companies say about their ratings from these agencies. Companies are likely to highlight a higher rating from one agency and ignore a lower one from another agency, or to select the most favorable comments from a rating agency’s report, according to the Insurance Information Institute.
All of the companies have different rating codes that you need to familiarize yourself with.
Experts recommend you treat ratings like you’re getting a bid for a project — meaning, don’t just get one, get ratings from a few companies and compare them.
Demotech also said if you would rather call them, they will even give you all the public information about companies over the phone. The number is 800-354-7207.
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