WEST PALM BEACH, Fla. — New insurance companies are setting up shop in Florida as major insurers choose to leave the state and it is creating some challenges for policyholders looking for new options.
“If they are domiciled in the state of Florida, they are insured by the Florida Insurance Guaranty Association, FIGA, we all paid for it,” Richard Estrella, VP of Florida based Estrella Insurance Agency, said.
The Florida Office of Insurance Regulation is in charge to make sure companies coming in are financially sound.
The biggest sign to look for is a financial stability rating of "A" from Demotech assigned to insurance companies in Florida.
“We are one of the largest home insurers in Florida, we have one of the largest balance sheets in Florida,” Bruce Lucas, CEO of Slide Insurance, said. “The company is relatively new, this is our third year being in business and a lot of consumers just haven’t come across our brand yet.”
Slide Insurance does have an "A" rating and is currently assuming policies from Citizens Property Insurance and making offers to displaced Farmers policyholders.
“I’d say one big advantage that we have over the legacy market is we are a newer company,” Lucas said, referring to the flood of insurance lawsuits that led lawmakers to pass reforms last year.
“No one will make a move until it gets tested,” Estrella said of many insurance companies, waiting to see if reforms do reduce lawsuits. “If there is positive outlook then we could see a resurgence, we could see the market soften again, everybody eases, then prices can stabilize.”