The Best Way to Pick a Florida Take Out Homeowners Insurance Company

Citizens Property Insurance is Florida’s state run home insurance company. It was formed to offer home insurance coverage to consumers unable to find coverage from a private Florida home insurance company. Homeowners in Florida turn to Citizens for coverage due to one or more risk factors that make their home undesirable to private insurance companies. These risk factors include among other things – the home’s age, distance from the coast, construction materials, and roof type.

Citizens Property Insurance depends on a mix of pre-event hurricane borrowing and imposing after the storm surcharges on all Florida home insurance policies if it doesn’t have the money it needs to pay claims.

This potentially lethal mix of high risk homes along with being under funded is one of the reasons that it’s always been a good idea to try to reduce the number of policies in Citizens Property Insurance. The smaller the number of policies that the company has, there is less chance that policyholders across Florida will have to pay large special assessments for many years after a major hurricane.

One of the ways that is done is by encouraging private home insurance companies to assume or “take out” policies currently covered by Citizens Property Insurance – hence the name “take out companies”. The take out process is also referred to as depopulation.

Attracting companies to assume or take policies out of Citizens Insurance Florida is good public policy.

In addition to moving more of Florida’s wind risk to the private market, customers may also get better customer service from a private take out company that doesn’t have a massive base of over 1 million customers like Citizens. They are also usually rewarded with annual insurance premiums that are lower than what they were paying Citizens. Finally, policyholders with private insurance companies are subject to smaller special assessments after major hurricanes.

Florida take out home insurance companies come to life with an immediate customer base of policyholders without having to make the usual investments in marketing and adverting. When these companies are initially capitalized, its easier for them to raise money because investors know that the take out companies will have an immediate customer base and money coming in immediately after they assume policies from Citizens.

Despite all the good that comes from reducing the number of Florida home insurance policies in Citizens Property Insurance, the take out program is not without its problems.

Policyholders are often concerned about the financial stability of the take out insurance companies. Many are start up companies and have a small surplus available to pay claims of $20 million or less. With Florida hurricane claims averaging $30,000 or more, even after a company’s reinsurance kicks in, there might not be enough money to pay all of the claims.

A significant number of take out companies were created after Florida’s 2004/2005 hurricane seasons. Policyholders are concerned that if their home has a hurricane claim in 2009, that their home will be “on-the job” training for the customer service staff at these newly formed companies – inexperience that could cause delays in paying claims fairly and prompty.

Many of these take out companies milk the policy base they assume and never go on to write any new business beyond the policies they take out of Citizens. Companies that don’t diversify their policy base beyond the original take out policies are more vulnerable to collapsing after a major Florida hurricane.

Last but not least, Florida insurance agents who originally wrote the policies that are being removed from Citizens might not want to become an agent with the new take out companies – even if it means they will lose the business. They simply might not want to add a new company to the mix of companies they already represent. Or they could have real concerns about the financial stability of the new take out company. The agent can’t stop consumers who want to benefit from a take out offer. However, an agent’s reluctance to be an agent with a particular company should at a minimum cause a consumer to pause and move forward with caution.

Here are the questions you should be asking your current Florida insurance agent if you are with Citizens and you are sent a take out offer – before you decide whether to move your Florida home insurance from Citizens to the new take out company:

How long has it been in business? Has it ever handled Florida hurricane claims before? If so, how many customers have filed complaints against that company for inadequate customer service.

How financially strong is the take out company? What are its financial ratings? How diversified is the company’s policy base across both Florida and other states? Are the policies being assumed by the take out company in North Central Florida, or in hurricane ground zero along the South Florida coast?

If your agent is not willing to become a new agent of one of the take out companies, that alone should be a warning sign to you. By taking this position, your agent is risking the loss of the commission your policy. Find out from your agent why they don’t want their agency to accept an appointment with the new take out company. The answer your agent gives you, might tell you everything you need to know about whether you should accept the offer from the new take out company.

Last but not least, ask your agent if there are any other Florida home insurance companies who might want to cover your home. The private home insurance market in Florida is always changing and there might be other companies now covering homes like yours that are a lot more stable.

Don’t forget, if you don’t bother to investigate these take out insurance companies, you will be the one that could be living with an unpaid claim after the next Florida hurricane.

Car Insurance Companies – They Know More Than You Think

When you apply for auto insurance, even when getting an online quote, you’d be surprised by the amount of information the insurance companies go through before telling you how much your premiums will be!

What are They Looking For?

The number one thing that insurers always look for is a clean driving record.  They will investigate your record in the state you’re living in as well as every other state in the country via a central database.  They will verify your birth date and compare it to other personal information to confirm that you are who you say.  They will dig into your driving records everyplace you’ve been issued a driver’s license and also cross-index other insurance records.  All this can take place in just a few minutes-or seconds, depending on the speed of their computers!

But that’s not all that insurance companies are looking for; you’ll also find that they thoroughly check out your credit report.

Why Should They Care About My Credit Score?

Your mother or grandmother may have told you that she can look at your friends and see your future.  Well, insurance companies can look at your credit score and see future!  Like the friends you choose can show your character, your credit score indicates your sense of personal responsibility. 

Let’s say that you’ve made some mistakes in the past and your credit score isn’t so great.  You’ve maxed out your credit cards during a rough patch and are paying them off with minimum payments.  You have no savings, a couple of late payments on record and your credit score is in the low 600’s.  This tells the insurance company that you don’t think about the future much and probably don’t take precautions against unexpected financial downturns.  You’re someone who is living in the present and not looking towards the future.  Is that accurate?

Whether that’s a true picture of someone with that credit score and history, that’s what the insurance companies see and what their statistics tell them is a logical conclusion.  Their data also tells them that a person with such a low score also has a high risk score-they are more likely to make a claim than someone with a higher credit score. 

Don’t Ask for Trouble 

Keep an eye on your credit report and make sure that it is accurate, checking it at least once annually.  Improve it as much as possible, paying more than minimum payments and specifying that the extra go toward the principle.  You’ll be rid of credit card debt in half the time if you pay in that manner and it will look good on your credit report. 

Don’t try to toggle your risk factor by omitting details about your driving record!  If you leave out citations or convictions on your application or deny that they exist, you could be setting yourself up for a fraud charge.  Even if you aren’t charged with trying to defraud the insurance company, it will be on your record for every other insurer to see. 

In short, be frugal and honest!  Good money management and an application that is factual will definitely save you money on your auto insurance. 

Auto Insurance Company – Free Online Car Insurance Company

Today it is very easy to find an auto insurance company free online car insurance quote. In fact, just about every company today offers these quotes online, in order to help you to find out whether not their the right company for you. So what is the best company for you? If it was this easy to determine this, everybody would go the same company.

The truth is, the best car insurance company will vary from person to person, depending on their personal situation. For instance, some companies might offer discounts for good driving records, even good grades, etc. It all depends on you and your situation. One company might be cheaper for your neighbor and may actually be more expensive for you.

So what are some for things to look for an auto insurance company? First of all, this is an obvious one, but it still is one of the central points: the price. The price of a policy will go a long ways to determining which is the right company for you is.

Of course, price certainly isn’t the only factor. Customer service is extremely important as well.

Quite simply, the insurance company industry, for better or worse, has developed the reputation of poor customer service. Many people report nightmare experience of having to wait hours before they get to talk with a representative.

Therefore, always make sure that the customer service is good before going with a particular company. Quite simply, some companies don’t have nearly the amount of current experience the other companies do. Therefore, it is imperative to look at the experience factor when deciding the right insurance company for you.

So how do you find out this information? Again, as with just about any information you want to find out in today’s world, the Internet has an abundance of info; by simply doing a quick Google search you will find literally millions of results to help you find out the right auto insurance company for you. Hopefully is important information help you quickly and easily find the right car insurance company for you with your individual situation.

What Does a Life Insurance Company Rating Mean?

Most people, comfortable with their own sense of immortality, might look to a Life Insurance Company rating as an indication of the lowest premiums for x amount of Life Insurance. A bit more important is the Company’s financial stability and its ability to pay its claims.

When you are shopping for Life Insurance and feel all proud of yourself for being responsible and taking care of the risk management portion of your long term financial planning process, it is easy to concentrate solely on the cost of premiums. After all, most people are expecting to lost their wager with the Insurance Company and are getting Insurance for the “what if” and not the “when.”

Yet, although comparative premiums play a part in the Life Insurance Company rating, financial stability is a more important consideration. If an Insurance Agent offered you a million dollar term policy for a couple of cents a year, it might seem like a very, very good deal. Yet, if the Company has folded up shop and moved to Central America when your beneficiaries come looking for their payout, it was really a wasted couple of cents.

In the world of permanent Life Insurance and the combination of Life Insurance with savings and investment, financial stability and a good track record in selecting and managing your investment are the factors that constitute a good Insurance Company Rating. The ratings and evaluations of any single Company are subject to change during the life of your policy. The need to understand ratings and to follow them closely does not end when the policy is purchased.

There are several reputable Rating services and they present their ratings online, so it is easy to obtain them. In addition, the Insurance regulatory agencies of most States can provide additional information on Company performance. The Insurance Marketplace Standards Association (IMSA) provides a Seal of Approval to Companies with ethical standards and a good performance records.

Remember, the Life Insurance Company Rating is a combination of a number of factors. These include competitive rate comparisons, but more important are the ratings that indicate long term financial stability and a good performance and investment track record. The ratings are tools that can be used to make the important choices involved in the selection of the best Company for your Insurance needs. Make sure you use them and do not be afraid to discuss them and their meaning with your Insurance Agent.