Lilly, O'Toole & Brown Blog

New Property Insurers Come to Florida. Good Deal?

Recently there has been a lot of interest by insurance companies seeking to enter the policy arena of the Sunshine State.  Citizen's Property Insurance, the state run insurance program, is actively seeking insurance companies to come to Florida and relieve some of the burden on what has become Florida's largest property insurer.  As with everything there is some good news and some bad.  With more companies entering this competitive market it is hoped that insurance rates would come down.  While insurance companies may promise to do such a thing, there is nothing like competition to force the issue and make them adjust rates and premiums to make sure they don't lose the business they have.  The bad news is the companies that are coming in.  Of 14 listed only one had been ranked by a national service and its ranking was "weak".  Currently it appears to make sense for those people who have policies with Citizen's to remain with Citizen's.  If one goes with the other companies and there is a major disaster the company may go under before a claim is paid.  With Citizen's the claim will be paid, even if it means taxing the general public to do it.  Better to pay a little more in premiums for a lot more peace of mind.