The insurance industry in Florida was exceptionally strong before the strong winds entered the state. But ever since Florida was experienced a few of the worst hurricanes in 2004-2005 many major insurance companies simply closed down or did not offer any further policies.
The reason for this change was that those hurricanes had huge impacts on the houses, destroying almost anything they came into contact with. So these companies went bankrupt or were almost at the verge of bankruptcy. And ever since the big companies were out of the scenario, many smaller insurance companies took over the state.
As a result of this when people are shopping around for home insurance they are not left with too many options, as they have to choose between Citizens, which is a state run insurance company, or from one of the smaller and newer insurance companies. Many people have been worried about this change in the insurance industry as they now do not have much available in terms of prices. Furthermore, trusting the new companies financially is also another issue as it is not sure if they can provide coverage on a huge scale if a there was a hurricane.
Twenty-seven fresh companies have received an approval from the state since the beginning of 2006. These insurance companies deal with home insurance policies for the residents, and are trying to restore the dwindling and uncertain insurance industry. Moreover, these insurers are trying to help those people who were either rejected by the financially exhausted insurance companies or were given a non-renewal to minimize financial contingencies.
However, it is very hard to make a comparison between an insurance company that has come into existence only recently with an insurance company that has been in Florida for the past many years. The new companies are very meticulous about their policies, unlike the old companies who already have customers. Before handing out the policy there would look into some aspects regarding your home such as the area where it is situated, how old it is and maybe even the price of the house.
The small companies might also not have enough finances at the time of a catastrophe, but at the moment these companies are the only hope for many of the people. If you’re lacking coverage and think one of these companies or others might help be sure to check online for any deals in your area as you may be able to find coverage for you so that you won’t be left high and dry when you need it the most.
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