skip to Main Content
Recently, We Sat Down With The Founder Of P Fudge And Associates, Paul Fudge, To Discuss His Reaction To An Inflammatory Insurance News Article.

Is Your Florida Insurance Company Safe For You?

A Reaction to a Recent Article Entitled ”How Safe Is Your Florida Property Insurer?” from P Fudge & Associates Founder Paul Fudge

Recently, we sat down with the founder of P Fudge and Associates, Paul Fudge, to discuss his reaction to an inflammatory insurance news article. The article cited concerns over the stability of smaller Florida insurance companies. For a clearer picture of Paul’s responses, you may want to read the original article here.

  1. The article states that small insurance companies in Florida have “gobbled up” around 300,000 policies from the state-run company Citizens.

Citizens was created when the big name national insurance companies dropped hundreds of thousands of policies after hurricane Andrew and left the state’s homeowners in a crisis.  The state-only companies sprang up to solve the problem.  It’s ironic that those same national companies would now point fingers at their smaller rivals. 

Citizens is, by design, the insurer of last resort, so people leaving Citizens is a healthy trend.  While private market insurance companies must have sufficient private market capital to be in business, Citizens, being a state owned agency, has long operated with insufficient reserves to pay claims after a catastrophe, relying instead on the state’s ability to pay claims through taxation on all property owners in Florida (called assessments).

  1. Certain rating companies, the article tells readers, can help you identify which companies are trustworthy.

The two rating agencies used by the mortgage industry for rating insurance companies in Florida are A.M. Best and Demotech. Any other rating agency is irrelevant.   A.M. Best generally will not rate a company that only writes business in one state, so Demotech is the primary rating agency for Florida.  Most people do not realize that a rating agency will only rate a company when they get paid by the company to do the rating.  Few companies will pay the hefty fee to be rated by a rating agency that few people pay attention to.

  1. The piece noted that some smaller insurance companies have folded in the past few years and their clients were automatically transferred to other firms.

Some state-only companies have failed – and more probably will in the future.  That’s why everyone needs a good, trustworthy insurance advisor to help them find a sound company with good customer service and competitive rates.  By the way – would you rather be insured with a company that gets bought out by another company because of financial difficulty, or with a company that drops their clients and leaves the state when the heat gets turned up?  

The national companies that are still in Florida are, in reality, often Florida-only companies that are owned by their big-name namesakes.  That allows the national company to cut the cord on a sinking ship if necessary without losing too much of their own money.  And you thought you were in good hands!

  1. In the article, the writer voices concerns about the ability of small insurance companies to give the best rates and service to customers.

We pay attention to the complaint ratios of the companies we do business with and are proud to say that we work with some of the best companies in the state!  We have sometimes lost business because the companies with the cheapest rates did not measure up to our standards either in their financial soundness or their complaint ratios and we would not do business with them.

We are a family-owned independent insurance agency; meaning we are not beholden to one insurer. We are a Trusted Choice Agency because we consistently choose the best value for our customers rather than the lowest price.  Remember, the cheapest policy does not always equate to the best coverage. Our goal is to match individuals with the coverage that fits their needs at an affordable price. Want to know more about us? Learn more here.

If you have questions or concerns about your own insurance or your insurance company, we can help. Please contact us at 407-965-4253! You can also find us on Facebook and Twitter!

Back To Top

Pin It on Pinterest