Hmmmmm. 1 does not have an AM Best rating, 1 has a bb- and the other has an A- rating. I wonder if 2 of the 3 will even be around after the fact. Check your homeowners insurance companies ratings people. And when I say ratings, I mean AM Best ratings! If it does not have an AM Best rating I would personally suggest you get a new carrier. For goodness sake, your home is your biggest investment so don’t buy on price.
AJ, you are correct in saying don’t buy on price, but you shouldn’t rely solely on AM Best ratings either.
AM Best is a “for profit” entity. It’s not like Consumer Reports. Larger companies buy many expensive products from AM Best, which is a conflict of interest. Their ratings are arbitrary to an extent and they do not fully disclose how they arrive at one company’s rating versus another’s. Could millions of dollars in payments to Best for software, products and ads in their publications sway their ratings?? Hmmmmm…
There are companies AM Best has rated A that have vanished and there are other rated in the B range that have been around for over a century.
AM Best ratings are one tool, but should not dictate your purchase decision. Look at the company’s longevity, their financials, their reinsurance program and their claims service. Also, check with the Insurance Dept in your state to see if they receive a lot of complaints.
Good point, AJ. Wait ’till another big one hits Florida, Alabama, Mississippi and Louisiana. Many “take-out” companies will go under as all they have is cash flow.
Every insurance company admitted to doing business by the DFS in New York is investigated by the state every 5 years. If a problem was found, the carrier(s) would have lost its state admission status. Here’s Kingstone’s last examination report by the NYS DFS:
What I find ironic is how Cuomo does not cite FEMA in the article, where thousands of people on Long Island have been delayed/denied flood claims due to Sandy. Would Andrew throw is cronies under the bus? I wonder.
Sandy was an UNPRECEDENTED event folks. The last storm of this magnitude to strike NY was in 1938!!
As for financial ratings, they should be used as a “guide” only. Remember AIG?
Hmmmmm. 1 does not have an AM Best rating, 1 has a bb- and the other has an A- rating. I wonder if 2 of the 3 will even be around after the fact. Check your homeowners insurance companies ratings people. And when I say ratings, I mean AM Best ratings! If it does not have an AM Best rating I would personally suggest you get a new carrier. For goodness sake, your home is your biggest investment so don’t buy on price.
AJ, you are correct in saying don’t buy on price, but you shouldn’t rely solely on AM Best ratings either.
AM Best is a “for profit” entity. It’s not like Consumer Reports. Larger companies buy many expensive products from AM Best, which is a conflict of interest. Their ratings are arbitrary to an extent and they do not fully disclose how they arrive at one company’s rating versus another’s. Could millions of dollars in payments to Best for software, products and ads in their publications sway their ratings?? Hmmmmm…
There are companies AM Best has rated A that have vanished and there are other rated in the B range that have been around for over a century.
AM Best ratings are one tool, but should not dictate your purchase decision. Look at the company’s longevity, their financials, their reinsurance program and their claims service. Also, check with the Insurance Dept in your state to see if they receive a lot of complaints.
Just my 2 cents!
Good point, AJ. Wait ’till another big one hits Florida, Alabama, Mississippi and Louisiana. Many “take-out” companies will go under as all they have is cash flow.
you should use their bond ratings instead
Every insurance company admitted to doing business by the DFS in New York is investigated by the state every 5 years. If a problem was found, the carrier(s) would have lost its state admission status. Here’s Kingstone’s last examination report by the NYS DFS:
http://www.dfs.ny.gov/insurance/exam_rpt/13668f11.pdf
What I find ironic is how Cuomo does not cite FEMA in the article, where thousands of people on Long Island have been delayed/denied flood claims due to Sandy. Would Andrew throw is cronies under the bus? I wonder.
Sandy was an UNPRECEDENTED event folks. The last storm of this magnitude to strike NY was in 1938!!
As for financial ratings, they should be used as a “guide” only. Remember AIG?