Not liking the companies home insurance in Florida is almost a habit in the Sunshine State. After all, many companies bailed on the condition starting with Hurricane Andrew – something that has continued until today. After the hurricanes of 2004 and 2005, several companies in Florida increased both their fares and the number of cancellations.

Now there are two distinct groups of homeowners insurance companies in Florida. The first group consists of well known national names such as State Farm Florida, Allstate Floridian and Nationwide Insurance Company of Florida, among others. The second group consists of companies of Florida has recently formed on the basis that began operations during the past 15 years – many since late 2005.

In this new world of big companies to leave and new companies entering the Florida market, the second group of newly formed companies that we should give one pause. Here’s why:

After the 2007 law as passed, many large domestic companies continued after the rate hikes while large companies recently formed the smallest cut their prices in response to this legislation.

These are the more recently formed companies that continue to develop their business in Florida, while the well-known national companies continue to cancel homeowners in Florida insurance policies.

The beginning of the Florida-up companies are willing to cover most old houses in Florida and properties along the coast – the risk that insurance companies greater long-abandoned house and continue to scale back .

Finally, these insurance companies latest deserve an opportunity to develop their capital and be allowed to develop in a responsible manner. They are our future, if there is no hope for the taxpayers of Florida and policyholders to avoid massive special assessments that we might face if citizens Property Insurance Corporation or the hurricane disaster in Florida Funds still come short.

Some companies have formed more recently begun to expand their risk across Florida and other states also. Spreading this risk is important and will help minimize the chances of small businesses strapped for cash after a major hurricane in Florida.

Finally, the State of Florida needs to take a fresh look at how it approaches the request of rate increases. The system is not functioning properly at present – the big companies leave the state are still higher rates or smaller rate reductions in starting new businesses that took much of hurricane risk in Florida .

Companies that can demonstrate they are growing their political base and those who can show a balance sheet to cover older homes and coastal areas should be allowed more power pricing and has granted rate increases that companies that are bailout.

This does not mean that starting new businesses are not without their own problems. They can also improve – especially on customer service, trying to run with smaller staffs and the common use of customer support centers.

However, the next time you’re part of a discussion where the hatred is focused on all home insurance companies in Florida, be careful not to paint everyone with the brush as wide. Many of the newer companies are higher risk covering your home, taking steps to reduce costs and premiums, and assuming that risk was part of Citizens Property Insurance Corporation.

Give these new start-up credit to help all Floridians during difficult times. More companies like this that we can be born and grow into large enterprises with adequate capital, the better it is for Florida in the long term.

Source : Michael Letcher