Home Owners Insurance from "no-name" insurance companies

8 Replies

Hi everyone,

I have a policy with State Farm on homeowners for one of my rentals, the price is $1400 and most other companies ive quoted (all state, travelers) are around 1200 (so basically the same).

I also got a quote from a company called Centauri Specialty Insurance for the same coverage that I have now and its only $800 a year. Obviously this would greatly impact my monthly cash flow. What is everyone's opinion on no name insurance companies such as Centaui Insurance?

Originally posted by @Account Closed :

Matt,

Where did you come up with Centaui Insurance being a no-name insurance company? They have been around for a long time.

 Hi John,

I've never heard of them before and didn't see much on Google. Have you used them before?

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If you ever want to know the "health" (so to speak) of an insurance carrier, you can always check the A.M. Best Rating. It's a wealth of knowledge and information. You have to have an account with them, but it's free. Additionally, there are some mortgage/finance companies that will require an insurance carrier have at least a certain rating, example, B+/A- or better in order to lend the money for the loan - just an FYI.

Additionally, the general population may only be aware of the most "popular" insurance companies (see: commercials), like, Allstate, State Farm, Nationwide, etc; however, there is a multitude of insurance companies out there; especially for rental types of policies and investment properties, because the Allstate's, State Farms, etc are much more risk adverse and prefer NOT to insure certain types of risks. I won't go into all the Surplus Lines type of carriers, but there are a plethora of them that are NOT commonly known by the general public, but are excellent A+/A++ rated insurance companies that have been around for years.

There are many carriers that you have not heard of that are great, there are tons of carriers with a better rating than the ones you seen on TV.

I'd stay away from anyone that is not rated my AM Best. Any large storm will wipe them out, demo-tech rating is a joke.

@Chanté Owens Thanks for telling me about AM best. I was looking for something like this.

@Ryan Turner   I looked up Centauri Specialty on AM best and they are not rated. Therefore, its best to stay away from them? What do you mean by demo-tech?

Can anyone suggest good homeowners ins companies who are known for lower premiums?

Demotech is basically the company you go to if AM Best will not give you a good rating.

Being right on the water like you are, you are not going to have many options. If looking to save money that may be the only way.  Find a Independent Agent in your area they a couple options for you.

Originally posted by @Matt F. :

Hi everyone,

I have a policy with State Farm on homeowners for one of my rentals, the price is $1400 and most other companies ive quoted (all state, travelers) are around 1200 (so basically the same).

I also got a quote from a company called Centauri Specialty Insurance for the same coverage that I have now and its only $800 a year. Obviously this would greatly impact my monthly cash flow. What is everyone's opinion on no name insurance companies such as Centaui Insurance?

 Matt, I switched from a name insurance company (Nationwide) to a "no-name" insurance company 18 months ago.  Basically, I'm spending half what I spent before the switch.  I haven't filed a claim, either before of after the switch, so I couldn't tell you anything about how each company handles claims.  However, I can tell you I am ECSTATIC about the savings.

My process went like this.  After feeling like I was paying too much for too long, I finally went to an independent insurance agent's office that worked with multiple companies, instead of a house office that offered insurance only from one company.  Before I went, I typed all my information on a sheet of paper: name, phone number, personal address, address of investment properties, and automobiles owned. 

 I visited two or three offices and dropped off that list, and waited for call backs.  I chose one from what I heard on the call backs, went in for a visit, and in a day or two I switched everything over to the new office.  I'm saving money on everything, primary home, investment properties, and auto insurance, but the biggest savings came from the investment properties.

I couldn't be happier with the change.  And across the board, I have better coverage than before.  Better coverage for lower prices?  Who woulda thunk it!

Good luck,

Randy