How strong is your homeowners insurance company?
You need to know if another hurricane is going to hit New Orleans will your insurance company still be in business?
No one really knows the answer to that question but before we review the ratings from Demotech you need to first understand insurance companies buy insurance too
Its called Reinsurance
Most insurance companies can not pay all claims out of their bank account
They purchase insurance just like us and have a deductible
Their deductible is the responsibility to pay all claims up to a limit
The limit could be 1,000,000
Once the losses exceed their deductible (1,000,000) they make a claim with their reinsurance company and the reinsurance company pays the remaining claims
The Louisiana Department of Insurance will review an application for a new homeowners insurance company and they have a reinsurance requirement so they monitor the financial stability of the insurance companies that are admitted to write new policies in Louisiana
Admitted Insurance Companies
You want to make sure you are with an admitted insurance company in Louisiana because all admitted insurance companies are protected up to 500,000 per house from LIGA Louisiana Insurance Guaranty Association
They protect you from insolvency of an admitted insurance company
A surplus lines insurance company will offer no protection from insolvency (out of business)
How can you check to see the financial stability of your homeowners insurance company?
You can use Demotech, a financial stability rating agency of insurance companies
Demotech will rate regional and specialty insurance companies
Here are the 2019 Demotech chart of net admitted assets from 14 insurance companies writing new homeowners insurance policies in New Orleans
If you have a New Orleans homeowners insurance policy this is a good indication of the financial size of your insurance company
Please note some of the companies just started writing in New Orleans so they may not have the amount of net admitted assets of some of the others but does not indicate in any way they are not a good choice for homeowners insurance
insurance company | net admitted assets |
|---|---|
$1,036,045,180 | |
SOUTHERN FIDELITY INS CO | $206,051,403 |
CAPITOL PREFERRED INS CO | $193,168,882 |
LIGHTHOUSE | $139,908,866 |
SAFEPOINT | $130,223,322 |
CENTAURI | $107,571,734 |
MAISON | $115,220,213 |
GULFSTREAM | $101,763,073 |
ALLIED TRUST | $75,829,361 |
BANKERS SPECIALTY | $51,835,945 |
ACCESS HOME INS | $38.226.865 |
UPC insurance company is top of the list for the end of 2019 in net admitted assets
They are the 18th ranked insurance company writing homeowners insurance in the United States.
to learn more about UPC click here
REQUEST A HOME INSURANCE QUOTE BELOW FROM
FM AGENCY GROUP
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The ratings of the companies listed above are A rated Exceptional from Demotech and each year they are reaffirmed
The website to do your own research is here DEMOTECH
FM Agency Group
Helping Louisiana with insurance since 2001. Homeowners, car, rental property, flood and personal umbrella. Get the protection you need for the value you want. 504.348.3131
Agent Tim
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