The rumor in my neck of the woods was that the state of Florida told them to reduce their exposure or buy more reinsurance, and they chose to reduce their exposure.
I wonder why they are non-renewing/cancelling policies? Can it be that maybe they realize they bit off more than they can chew offering homeowners such low premiums compared to the rest of the market???? What most homeowners don’t know is that they can be subject to a 10% AOP deductible if certain things happen. Everyone needs to read their policy and keep in mind, You Get What You Pay For!
Dear Lord, does no one have any business sense any more? The $208M is not profit, they have employees and their benefits to pay, expenses for buildings, materials used, utilities and they are paying other losses than just wind. If they are typical of Fl companies they might have broken even or had a 1 – 5% profit, if it was a good year. By reducing their coastal exposure they MIGHT be able to stay in business when the hurricane comes.
I suspect anyone who thinks this company is so great sells price over coverage. Do a little research about this company. At one point a few articles said they had the most consumer complaints and that wasn’t under the old CEO either.
Licensed agents must give a copy of this article to any new prospects, otherwise it will Material Misrepresentation of facts the prospective client needs to be made aware that when the People’s Trust policy cancels in the middle of the summer and Hurricane Season we may be on a tropical storm or hurricane warning or watch
this is going to open Garage Doors to E&O exposures
How exactly are they going to be part of the clearnighose ifthey are non renewing people? Going to pick up Citizen’s policies in more favorable areas of the state in exchange for the ones they decide to non renew? No storms last year, let’s dump them while we can and run with the profits. Someone from the state needs to go out to their office and revoke their award.
This being Insurance Journal assumes that the readers are insurance professionals or at least knowledgeable folks interested in insurance. From reading these comments I’m seriously doubting that, or they are really ignorant of the situation in Florida. Basically, you have a hyper over regulated environment where you have a distorted market due to that regulation. Because of that your normal cast of competitors is displaced by these fly by night start ups that will likely go bust with the first big storm. This stuff works in other states, it’s not rocket science, where the regulators have a light touch, but not so much in Florida.
Unfortunately this is black eye for the industry. People see these types of actions and it reflects poorly on all P & C companies.
However, I disagree with the “pure profit” comment. There is a risk element in every policy premium for that one year. You can’t just dismiss that factor and assume they were rolling the dice for one year and then getting out. They probably did a lousy job of risk management and realized it. Many companies in 1992 didn’t and they are no longer in business.
I completely agree. I find reading some of the ignorant and uneducated comments hilarious. This is not the first company to do this sort of thing in the State of Florida. I am personally not suprised.
I was born and raised here in Florida and have worked in the insurance industry for the last 10 years. I have seen numerous companies go belly up.
While i dont agree with everything that People’s trust has done. They pay for and require one of the most thourough inspections i have ever seen and more companies should do the same, know what you are insuring. They also have something called the preferred contractor agreement which gives People’s trust the option to use their licensed contractor at the time of a loss. As we all know some of the contractors will either overcharge or take the money and run for the hills. This cuts down on excessive spending and not only protects the company but the insured. Most policyholders would rather have a physical check cut in their name from the company and make a profit, simply for greedy reasons. This is the reason our rates continue to climb but no one gets that we are shooting ourselves in the foot and blaming the companies. Lastly is that increased hazard deductible everyone is so afraid of. It only states that if there is existing damage on the home listed on the inspection that they are subject to the 10% deductible at the time of the loss. Why should the insurance company pay out more to fix something that was broken to begin with.
if you have better strategies than these please share with us
the Repair work involving People’s Trust on their VipGOLD program and the “Preferred” Contractors has a 3 year warranty only. [The Warranty is not by People’s Trust]
they claim to have fully stocked warehouses somewhere, [I hope they are not stocking their warehouses with Chinese Drywall]
The STANDARD is for you to get your check from the Insurance Company hire a reputable contractor and get a 10 year warranty from your Contractor, roofer, etc and the repair work being done with County Permits, licenses inspections and a FINAL issued by the County. [That’s the Standard]
Some Contractors even offer longer warranties on their repair work
now supposed the insured is an 85 year old person with the roof blown off and major damage on the home and he(she) is too old and sick to deal with rebuilding a home
With any other company the 85 year old sick retiree takes his insurance check and moves to a retirement home in Meza, Arizona
All of their policies include the “Preferred Contractor” discount. I’m sure it’s just automatic, without asking the customer if they actually want this. The “Preferred Contractor” is Rapid Response Team. And, guess who owns Rapid Response Team? YEP, Michael Gold, who is Chairman and CEO of People’s Trust. AND, a Rapid Response Team fix may be the only option policyholders are given and the scope will be limited to only what Rapid Response Team deems necessary. Also, the “fast claims service” doesn’t include a licensed insurance adjuster stepping foot on the property. Rapid Response Team also requires the deductible up front. No money, don’t worry, Michael Gold has a company that FINANCES deductibles. Just what a customer needs at this time – to pay interest on their deductible.
All the above information was taken offline. If you Google “another outrageous insurance claim denial by People’s Trust Insurance”.
“Award Winner”
Yup…
The rumor in my neck of the woods was that the state of Florida told them to reduce their exposure or buy more reinsurance, and they chose to reduce their exposure.
cowards! no risk no gain. man up and play or go home!
Your sound like their old CEO. The new one apparently doesn’t have the same game plan.
I wonder why they are non-renewing/cancelling policies? Can it be that maybe they realize they bit off more than they can chew offering homeowners such low premiums compared to the rest of the market???? What most homeowners don’t know is that they can be subject to a 10% AOP deductible if certain things happen. Everyone needs to read their policy and keep in mind, You Get What You Pay For!
So, that $208 million they collected last year, and premiums collected so far for this year, are pure profit. THAT’S an Innovator of the Year!
Dear Lord, does no one have any business sense any more? The $208M is not profit, they have employees and their benefits to pay, expenses for buildings, materials used, utilities and they are paying other losses than just wind. If they are typical of Fl companies they might have broken even or had a 1 – 5% profit, if it was a good year. By reducing their coastal exposure they MIGHT be able to stay in business when the hurricane comes.
Who cares if they stay in business? Let ’em go under and have the state’s insurance funds take care of the losses they can’t pay.
Oh wait. It’s Florida. Probably no funds set up for this sort of thing. My bad.
I suspect anyone who thinks this company is so great sells price over coverage. Do a little research about this company. At one point a few articles said they had the most consumer complaints and that wasn’t under the old CEO either.
BUT, they do have “trust” as part of their name. So doesn’t that mean I should trust them?
That’s funny, Mel.
Didn’t your mom tell you not to “trust people” from Florida?
Capitalism at it’s best. Defacto redlining, They probably looked at canceling agents but that would take too long to run off the risk.
Let’s give them a tax cut! They deserve it – they’re job creators!
So this means that all these policy holders will be reimbursed for the useless policies and wasted time and money, correct?
This shouldn’t even be legal!!!
Not a Liberal is advocating for more regulation!!!???
…are you feeling OK?
Licensed agents must give a copy of this article to any new prospects, otherwise it will Material Misrepresentation of facts the prospective client needs to be made aware that when the People’s Trust policy cancels in the middle of the summer and Hurricane Season we may be on a tropical storm or hurricane warning or watch
this is going to open Garage Doors to E&O exposures
Gov Charlie opened the door to PT.
How exactly are they going to be part of the clearnighose ifthey are non renewing people? Going to pick up Citizen’s policies in more favorable areas of the state in exchange for the ones they decide to non renew? No storms last year, let’s dump them while we can and run with the profits. Someone from the state needs to go out to their office and revoke their award.
This is so very sad.Those poor people…
What actions have the governing authority took? There are no consequences for these types of behaviors.. none…. sad, sad, sad.
I lived on a farm; never have I seen farmer jack put the foxes to guard the chickens.
This being Insurance Journal assumes that the readers are insurance professionals or at least knowledgeable folks interested in insurance. From reading these comments I’m seriously doubting that, or they are really ignorant of the situation in Florida. Basically, you have a hyper over regulated environment where you have a distorted market due to that regulation. Because of that your normal cast of competitors is displaced by these fly by night start ups that will likely go bust with the first big storm. This stuff works in other states, it’s not rocket science, where the regulators have a light touch, but not so much in Florida.
Unfortunately this is black eye for the industry. People see these types of actions and it reflects poorly on all P & C companies.
However, I disagree with the “pure profit” comment. There is a risk element in every policy premium for that one year. You can’t just dismiss that factor and assume they were rolling the dice for one year and then getting out. They probably did a lousy job of risk management and realized it. Many companies in 1992 didn’t and they are no longer in business.
I completely agree. I find reading some of the ignorant and uneducated comments hilarious. This is not the first company to do this sort of thing in the State of Florida. I am personally not suprised.
This company has no real business plan. They send junk mailers just selling price. Agents that sell the POS policy deserve an E/O claim.
Disguising Ho8’s as basic homeowners? How would the 60 on staff contractors fair in a catastrophe, when a majority of the business is in SoFla.
This should not be allowed. We moved to Florida two years ago this month and are selling and moving!
Florida is a shithole.
Takes one to know one.
I was born and raised here in Florida and have worked in the insurance industry for the last 10 years. I have seen numerous companies go belly up.
While i dont agree with everything that People’s trust has done. They pay for and require one of the most thourough inspections i have ever seen and more companies should do the same, know what you are insuring. They also have something called the preferred contractor agreement which gives People’s trust the option to use their licensed contractor at the time of a loss. As we all know some of the contractors will either overcharge or take the money and run for the hills. This cuts down on excessive spending and not only protects the company but the insured. Most policyholders would rather have a physical check cut in their name from the company and make a profit, simply for greedy reasons. This is the reason our rates continue to climb but no one gets that we are shooting ourselves in the foot and blaming the companies. Lastly is that increased hazard deductible everyone is so afraid of. It only states that if there is existing damage on the home listed on the inspection that they are subject to the 10% deductible at the time of the loss. Why should the insurance company pay out more to fix something that was broken to begin with.
if you have better strategies than these please share with us
the Repair work involving People’s Trust on their VipGOLD program and the “Preferred” Contractors has a 3 year warranty only. [The Warranty is not by People’s Trust]
they claim to have fully stocked warehouses somewhere, [I hope they are not stocking their warehouses with Chinese Drywall]
The STANDARD is for you to get your check from the Insurance Company hire a reputable contractor and get a 10 year warranty from your Contractor, roofer, etc and the repair work being done with County Permits, licenses inspections and a FINAL issued by the County. [That’s the Standard]
Some Contractors even offer longer warranties on their repair work
now supposed the insured is an 85 year old person with the roof blown off and major damage on the home and he(she) is too old and sick to deal with rebuilding a home
With any other company the 85 year old sick retiree takes his insurance check and moves to a retirement home in Meza, Arizona
All of their policies include the “Preferred Contractor” discount. I’m sure it’s just automatic, without asking the customer if they actually want this. The “Preferred Contractor” is Rapid Response Team. And, guess who owns Rapid Response Team? YEP, Michael Gold, who is Chairman and CEO of People’s Trust. AND, a Rapid Response Team fix may be the only option policyholders are given and the scope will be limited to only what Rapid Response Team deems necessary. Also, the “fast claims service” doesn’t include a licensed insurance adjuster stepping foot on the property. Rapid Response Team also requires the deductible up front. No money, don’t worry, Michael Gold has a company that FINANCES deductibles. Just what a customer needs at this time – to pay interest on their deductible.
All the above information was taken offline. If you Google “another outrageous insurance claim denial by People’s Trust Insurance”.