homeowners insurance identity theft
Watching financial needs strength
After our 2004 – 2005 hurricane season, many insurers stopped writing new business in Florida and some went bankrupt (bankruptcy). Owners markets dried up and other companies increased rates. Since 2006 we have had 31 new companies into Florida. 21 are actively writing homeowners coverage. All these new companies have an initial starting capital of 5 million to 65 million. For more information on these new companies visit target = "_blank"> www.floir.com/CompanySearch/ and search in the "Companies" tab. These companies have increased their volume of premiums in the past two years. Having no hurricane losses has been useful. Many of these companies are rated by AM Best Company or Demotech rating due to its short time in business. Normally it takes about five years in business for classification. The minimum initial capital to start an insurance company in Florida is about $ 5 million. One of the new company, American Keystone Insurance Co., which began in February 2007 with an initial capital of 9 million. Recently went bankrupt. Its last owner policies canceled 8 November 2009. There were no significant hurricane losses, while they were in business. With the decline of our state's initial investment capital requirement to start an insurance company, is chilling to think of the survival of new firms after a major hurricane. The new requirement for insurance companies is important to help the uninsured get their claims paid after a storm.
State Farm Florida Insurance Company is planning to leave the Florida market. They are scheduled to phase out their property and homeowners in late 2011. State Farm Group has about 17% of the market share of Florida according to AM Best Co. is a large number of policies and create a gap in the market. In June, AM Best Co. downgraded the financial rating of State Farm Florida Insurance Company to "B". This rating is better than no recommendation on new companies mentioned above. Many of the policies now in written by State Farm Florida Insurance Co. was placed in the new Florida businesses that have not been assessed in the next 2 years. The new Florida businesses are very important and play a big roll to fill the void in the insurance market in Florida.
There are some companies that have been in Florida for years the coverage of the owners in writing. Tower Hill Gp., Universal P & C Insurance, USAA Group are just a few. They have "A" rating or better by AM Best Co. With the absence of State Farm Florida Insurance Co., all Florida businesses, both new and old are very important and necessary to stabilize the insurance market in Florida.
We were very fortunate not to have major losses in this hurricane season. The new companies become stronger because of it.
About the Author:
Robert “Bob” Fowinkle, CIC, CLU is the president of Moore, Fowinkle, & Schroer Agency in Bradenton.
Call Moore, Fowinkle, & Schroer Agency at 755-2628.
E-mail = popeye10@verizon.net
Article Source: ArticlesBase.com – Watching over your Financial Strength – Florida Insurance Tips
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