Any feedback available Monarch and/or Tower Hill insurance companies..??

Question

I have a SFR I'll be operating as a STR in Pensacola, FL.  The only carriers I've been able to find to give me a policy on this are Monarch and Tower Hill.

I don't know anything about either, and I'm just curious if there's any feedback I can get or experiences with either/or from the group..??

Any information on this would be greatly appreciated.  Thanks!

Michael Baum · Answer

Ok @Andrew Angell, I am no expert on insurance, but here is my thoughts -

Centauri - The negative net premiums written is just a reduction in the amount of policies written vs ones that have been canceled or non-renewed. That is how I see it. I don't think that is a big deal.

Monarch - They were formed as an offshoot from the FedNat liquidation so that is why those numbers are a bit wonky. I assume seeing as they are one of the few still underwriting policies that they got business from those that lost their insurance.

I don't believe that it is net profit. I think it is just the value of written policies each year. Centauri appears to have lost some business.

I can't recommend any one really. AM Best has been the standard for rating insurance companies. Demotech is one I haven't seen before.

I think that if you can get insurance at a decent rate with good coverage, you can count yourself lucky.

@Napoleon DeCiutiis's recommendation to check with local brokers is a good idea.

Andrew Angell · Answer

Yes, I have talked to about 7 local brokers.  At first I was getting quite a few different quotes from different companies, but then when it actually went to underwriting they came back and said those companies won't do STR in an LLC in the Gulf.  So it seems to be that combination.

The only companies that are coming back from underwriting with an approval are Monarch, Tower Hill, and now I also have one from Centauri.

The one from Centauri is actually quite a bit cheaper than the other two, but all the variables on the quote seem aligned.

@Michael Baum When I look at Centauri at that website you referenced (https://www.demotech.com/compa...) I see it actually has a negative value for Net Premiums Written, but I'm not entirely clear what that means..??

It's also dropping each year since 2020.

Monarch is the only one showing an increase each year, with a massive increase last year, I guess because they took on the policies of the companies that went under..??

Tower Hill is positive, but decreased between 2021 and 2022.

I am assuming that this is one of the reasons you suggested Monarch over Tower Hill, but can you elaborate a bit?  Am I reading this data correctly in that a "net premium written" basically shows that they have a net profit after collecting premiums and paying expenses?

Napoleon DeCiutiis · Answer

Andrew,

Use local brokers- they will get you the best rates. A couple of suggestions for that area are:

1. Melissa Keener with Allstate (They'll shop with FL Insurance companies)

2. Stallworth Insurance

3. Classic Insurance Group

4. McMahon and Hadder

The other nice thing about using a local broker- if something disastrous happens, you have a local person to speak with and get help/advice instead of a call center in Wyoming. (No offense, Wyoming!)  Good Luck!

Sarah Kensinger · Answer

I'm guessing Proper insurance won't cover your property. You could also try Steadily or Foremost Insurance, although I'm thinking the latter is not specifically a STR insurance company. Several months ago, I had connected with a local insurance company in Destin, although that quote was for a condo. Unfortunately, I didn't keep their info and don't remember their name, but you could check with some local STR insurance companies.

Andrew Angell · Answer

I really appreciate your feedback, thanks!

Michael Baum · Answer

Hey @Andrew Angell, so they are both exclusive to Florida. Monarch was formed by the liquidation of FedNat and is very new, 5 years.

Tower Hill is a little shady. Am Best recently dropped their rating to B+. Lots of customer complaints.

So neither seems like a great solution, but I just did a cursory look. Tower Hill would be a no for me.

Monarch has a A rating from Demotech. That is a upper middle rating. A"" and A" are the top.

So if I had to choose, Monarch looks the best on paper.

https://www.demotech.com/compa...

Any feedback available Monarch and/or Tower Hill insurance companies..??

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