Weiss Ratings Ranked Florida Windstorm Insurance Companies
Weiss Ratings ranked Florida windstorm insurance companies based on their financial soundness and found that not all insurance companies are prepared to handle post hurricane claims.
According to data from the Insurance Information Institute (III), 16 insurers went bankrupt after Hurricane Andrew hit Florida in 1992 as claims overwhelmed smaller insurance companies. Since then, the Florida Insurance Guaranty Association has backed Florida insurers, but if your insurance company goes under it can lead to major delays in the claim process.
A recent study by the ratings firm Weiss Ratings ranked Florida windstorm insurance companies based on their financial soundness and found that not all insurance companies are prepared to handle post hurricane claims.
Weiss evaluated and ranked 135 insurance companies on a scale of A through F based on the their cash reserves, investments, liquidity/cash flow, profitability as well as the years they have been in operation.
“Many Florida homeowners are still waiting for their insurance claims to come through after a severe hurricane season last year,” said Gavin Magor, Weiss Ratings director of research, in a recent press release. “If the 2018 hurricane season is similar or worse, it could compound the problem, raising questions about the ability of weaker insurers to promptly cover major damages,” he continued.
Let’s Look at the Rankings
Which company to insure your home with is a major decision and you want to feel confident that if your house is damaged or destroyed your claim will be handled quickly and fairly. Following are the rankings by Weiss.
Top 10 Best ranked insurance companies:
- Amica Mutual Insurance (B+)
- Auto Club Insurance Company of Florida (B+)
- Castle Key Insurance Company (B+)
- Cincinnati Insurance Company (A)
- Citizens Property Insurance Company (A+)
- Southern Fidelity Insurance Company (B+)
- Southern-Owners Insurance Company (A)
- United Services Automobile Association (A-)
- USAA Casualty Insurance Company (A-)
- USAA General Indemnity Company (B+)
On the other side of the coin are these insurers who ranked lowest in the Weiss study.
Top 10 Worst ranked insurers:
- Anchor P&C Insurance Company (D)
- Edison Insurance Company (D+)
- Florida Specialty Insurance Company (D)
- Olympus Insurance Company (D+)
- People’s Trust Insurance Company (D+)
- Prepared Insurance Company (D)
- Tower Hill Preferred Ins Company (D)
- Tower Hill Prime Insurance Company (D)
- Universal P&C Insurance Company (D)
- White Pine Insurance Company (D+)
If you are curious where your insurance company ranks you can check out the rest of the rankings on the Weiss Ratings website but you do need to sign up for a free account.
Other Ways to Verify Your Insurer is Financially Sound
These rankings are a great place to start but there are other ways to verify that your insurance company is financially sound. There are five independent agencies that rank the financial strength of insurance companies.
While each of these companies have their own rating standards, looking at the ranking from each of these agencies will give you a good idea of the financial strength of your insurer.
Check these companies for rankings:
These rating agencies don’t always agree so it is a good idea to consider rankings from at least two agencies before purchasing a policy from an insurance company.
Company rankings can change so it is a good idea to reevaluate your Florida home insurer on a yearly basis.