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I’m about to buy a house and getting Homeowner’s insurance quotes. Someone mentioned that one of the biggest cons of citizens insurance is that if there’s a big hurricane (quite common in FL), they will charge some kind of additional charge… is it better to go with a private provider (like ASI or Federated Nat’l Insurance Co)?

1 Thought on Florida Homeowner’s Insurance: pros/cons of citizens vs. private insurance?
  1. Reply
    June 26, 2011 at 1:43 pm

    Citizens is the state run program.

    Yes, if there’s a big hurricane, they will raise their rates – and as their funding is subsidized by PROPERTY TAXES in the state, EVERY property owner will pay more, to subsidize those claims. Even those who don’t have Citizens for their insurance.

    If you can find a company rated by AM Best A- or better, like ASI, WILLING to write your policy in Florida, I would go with them. That’s because they’re financially stable, and able to pay your claims in a timely manner. Last big hurricane that blew through, Citizens took up to 9 months finding the money to pay the claims. BUT, they have the taxation power of the state to back them up, so they will pay – sooner or later.

    There’s a handful of little startup companies like Federated National, who are NOT rated by AM Best. When I’ve looked at their financials, seems like they have enough money to pay for 450 houses that are total losses – which could leave you, the homeowner, holding the bag, the next time a major hurricane blows through.

    Hope that helps.

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