Fed Nat's House Insurance Rating

FedNat Insurance Company is no longer in business and stopped selling home insurance in 2022. The company was deemed insolvent and placed into liquidation in September 2022, and its parent company filed for bankruptcy. FedNat had a poor outlook for financial stability, with high customer complaint ratios and a reputation for poor customer service. However, it was one of the more popular home insurance companies in Florida, where homeowners can struggle to get coverage from nationally known providers. FedNat offered affordable rates, especially in the state's three largest counties, and provided various insurance products, including homeowners, flood, and umbrella liability insurance.

FedNat's financial stability

FedNat Insurance Company has been in the business of providing insurance to individuals and businesses for more than 25 years. The company was founded in Florida in 1992 and has been committed to providing fair and competitive pricing alongside exceptional customer service. FedNat underwrites various insurance policies, including homeowners' multi-peril, federal flood insurance, and other lines of insurance in multiple states, including Florida, Alabama, Louisiana, South Carolina, and Texas.

In recent years, FedNat's financial stability has come into question. The company was deemed insolvent in 2022, and on September 27, 2022, it was placed into liquidation by the Second Judicial Circuit Court in Leon County, Florida. FedNat's holding company filed for Chapter 11 bankruptcy, listing $33.8 million in assets and $171 million in debts. This liquidation was due to a combination of factors, including an increase in devastating weather events in the Southeast, high reinsurance costs, and costly claims litigation in the Florida insurance market.

Prior to the liquidation, FedNat and its affiliate, Monarch National Insurance Company, were both rated by Demotech, an industry reviewer. However, after FedNat's announcement of consolidation under Monarch, Demotech is no longer rating FedNat for financial stability. Monarch currently holds an "A" or Exceptional rating from Demotech, which is the third-best ranking provided by the reviewer.

Despite the financial challenges faced by FedNat, the company has continued to serve its customers. As of 2024, FedNat is still operating and providing insurance services. The company has expressed its commitment to providing fair, expedient, and personalized claims handling, with its experienced claims team having paid out over $1.7 billion in claims over the years.

In summary, while FedNat has faced financial difficulties and is no longer selling homeowners insurance, it still maintains operations and continues to service existing policies. The company's financial stability has been a cause for concern, as reflected by its insolvency and subsequent liquidation. However, with the consolidation under Monarch, there is a potential for improved financial stability, as indicated by Monarch's "A" rating from Demotech.

Customer service reviews

FedNat Insurance Company has been in business for more than 25 years, providing individuals and businesses with homeowners insurance, high-value homes insurance, condo insurance, flood insurance, and umbrella liability insurance. The company is committed to providing fair and competitive pricing coupled with exceptional customer service. However, reviews of the company's customer service are mixed.

FedNat has an A+ rating from the Better Business Bureau (BBB) but is not BBB-accredited. The BBB reports that there have been 34 complaints closed in the last three years, with an average of 28 customer reviews. The most common complaints are related to denied claims, unsatisfactory settlements, and delays during the claim process. The company has a complaint ratio from the National Association of Insurance Commissioners of 1.99 in 2020, indicating that it received almost double the number of complaints expected for a company of its size.

On Yelp, FedNat has an overall rating of 1.5 stars out of 16 reviews, with most reviews regarding a negative claims experience. On Clearsurance, the company has a rating of 2.16 stars out of 21 reviews. However, one Clearsurance reviewer notes that FedNat's service is much better than other insurance companies in Florida, with transparent features and a good amount of discount.

FedNat's customer service has been described as "poorly-rated" and "troubling", with a high number of complaints registered. Many customers have reported issues with denied or delayed claims, as well as a lack of response from the company. On the other hand, some customers have praised the company's prompt and efficient handling of claims, particularly in cases of hurricane damage.

Overall, while FedNat has received mixed reviews, the company has a higher-than-average number of complaints, particularly regarding its customer service. As of 2022, FedNat is no longer in business and is no longer selling insurance policies.

Coverage options

FedNat Insurance Company, founded in Florida in 1992, offers a range of insurance products, including homeowners insurance, high-value homes insurance, condo insurance, flood insurance, and umbrella liability insurance. The company provides coverage for various perils, including fire, lightning, hail, and wind damage, excluding events like war, earthquakes, and flooding.

FedNat's standard homeowners insurance policy, known as HO-3, covers the structure of your home for "open perils," reimbursing you for damage from any cause except specific exclusions. This means you'll be protected against fire, lightning, hail, and wind damage, but not war, earthquakes, or flooding. Additionally, their HO-6 policy provides multi-peril insurance solutions for Florida condo owners.

In terms of additional coverage options, FedNat offers federally backed flood insurance, which covers damage to your home caused by flooding. They also provide umbrella liability coverage, protecting you from medical or other damages if someone sues you after being injured on your property.

Another unique offering from FedNat is StormPeace, which provides supplemental coverage for hurricane protection. This policy includes flood insurance and covers hail damage, among other benefits. With StormPeace, you receive cash within 72 hours of a hurricane impacting your area, with the payment amount increasing with the strength of the hurricane.

For those looking to protect their personal belongings, FedNat's standard homeowners policy also covers personal property, such as furniture, clothing, appliances, and electronics. However, these items are only covered if damaged by a peril named in your policy.

To enhance their coverage, customers can also opt for the "Flo by Moen" add-on, which offers a discount on smart home monitoring and leak detection systems that can remotely shut off water in the event of a damaged pipe. Additionally, FedNat provides Service Line Coverage, which extends protection to underground pipes, wiring, and service lines.

For those concerned about identity theft, FedNat offers Social Media Coverage and ID Theft Protection. The former includes tracking accounts and notification of any compromised accounts, while the latter provides reimbursement and recovery services after identity theft.

Lastly, FedNat's Equipment Breakdown coverage protects against unexpected repair or replacement costs due to electrical, mechanical, or pressure system breakdowns.

Flood insurance

FedNat's flood insurance covers damage to your home from flooding. The rates and requirements for this insurance are set by the government and do not differ among insurers. This means that customers can be assured that they are getting the same deal as they would with other companies.

In addition to flood insurance, FedNat also offers other types of insurance, including homeowners' multi-peril insurance, federal flood insurance, and umbrella liability insurance. The company has been in operation for over 25 years and is committed to providing fair and competitive pricing, as well as exceptional customer service.

However, it is worth noting that FedNat has received mixed reviews for its customer service. While the company claims to be committed to providing exceptional service, there have been complaints regarding denied claims, unsatisfactory settlements, and delays during the claim process. As of September 2022, FedNat is no longer selling insurance policies and its parent company has filed for bankruptcy. Customers are advised to shop around for alternative insurance providers.

Monarch National Insurance

Monarch National is a relatively new company, formed under the management of the FedNat team of insurance experts. Despite its recent establishment, the company brings over nine years of industry experience to the table.

The company provides HO-3 and HO-6 multi-peril insurance solutions for Florida homeowners, allowing them to safeguard their home's structure and their personal belongings. Additionally, Monarch National offers a Dwelling Fire (DP-3) policy, which is tailored to meet the unique needs of Florida condo owners and landlords, helping them protect their investments.

The company has received positive reviews for its customer service, with testimonials highlighting the knowledge and professionalism of its staff. However, there have also been complaints regarding delays in repair payments for homes damaged by hurricanes.

Frequently asked questions