Tower Hill Insurance Group is not trying to write their way out of trouble the way POE did after the 2004 storm season. Still, this move is quite disturbing.
This is all the government’s fault for what’s happening. Regulating the rates so Charlie can look good on the consumer’s eyes. If the companies could set their own rates they could collect the proper premium to keep the reinsurance and their financials at good standings. Get rid of Charlie and bring someone that fights for our industry the way it should……Alex Sink.
Have no fear, I’m sure Demotech with step up with an A rating to preserve this carriers ability to write policies in Florida. As long as Charlie is running for office, everything will be ok….
A “D” reating is not good obviously. Many E&O carriers will exclude coverage should something financially go awry with Tower Hill. This means that some agencies with this restriction on their E&O will have to avoid Tower Hill. I wonder what impact that will have on Tower Hill. I also wonder who to beleive: Tower Hill or AM Best?
As a consumer, I would purchase coverage from Tower simply based on their understanding of the inherent weakness of the government reinsurance program (storm damage claims waiting for a bailout) and storm event projections.
AM Best needs to rethink these “chicken little” standards and quit reacting to government pressures to downgrade carriers as the debate over Fed control heats up.
Good luck, at least in coastal counties, finding an admitted A.M. Best rated carrier offering homeowner coverage.
Since THIG has requested withdrawal from the A.M. Best system they will not be considered “D” by A.M. Best…they will remain Demotech “A” rated like most every other company offering coverage in Florida.
Having an agency relationship with THIG since before Hurricane Andrew I trust that they will be around long after most of the myriad of startup companies are rendered insolvent….and/or after the FHCF calls for a federal bailout.
Tower Hill is and will continue to be a Top Notch Insurance Carrier. From the CEO Bill Shively to Underwriters and CSR’s the Customer Service provided by Tower Hill is unsurpaced.
This Independent Agency stands with Tower Hill. Christ and AM Best need a clue!
GeoVera Specialty Insurance Company is a non-admitted AM Best A- rated insurer writing throughout Florida through wholesalers. This company charges adequate rates and buys appropriate reinsurance to stay in solid financial shape – even when the wind blows.
Cat business is their business.
Personally, if I were an agent in FL I would be going non-admitted as much as possible to stay out of the state mess!
I think it should be know that tower hill has over 400 employees. They have been around for close to 40 years and have survived storms such as Andrew and the havoc that the 2004/2005 seasons brought to the state. There are here alive and well, and arent running away like many companies before them and those who cant take the wind in the future. This agent will be selling Tower till the cows come home.
Are you out of your mind? Have you ever read a contract from some of these non-admitted carriers? Some of the exclusions and special provisions are enough to boggle the mind.
As far as E&O goes, that’s a disaster of a whole other nature. There are some E&O carriers who don’t mind what carriers you represent. Many of those carriers exclude carrier solvency.
What exclusions are you talking about? I know there are some sinkhole limitations, but what else are you talking about? I have read the contract and it looks pretty good (and standard) to me.
I write Geovera as well as THIG. The first unusual limitation which comes to mind is the “roof coverage limitation” of $5,000 which applies if more than one layer of roofing over-layment exists. I am sure there are others but I don’t have the policy form handy.
THIG, is fine. Which rating is better? A “D” from A.M. Best or an “A” from Demotech for a carrier that couln’t even get a return phone call from A.M Best.
This whole thing is making me nervous about Tower Hill. Are they really making the financial sacrifice for reinsurance so that they can pay claims should we get hit with a storm as part of good service; or are they just financially strapped. Poe had a lot of good arguments on their financial stability before they went under.
Tower Hill is a great organization. Hopefully they will weather this storm. (Pun intended)
The $5,000 roof limitation is also one of the GeoVera limitations I was thinking of. If you think it’s a standard contract I would hate to be your E&O carrier.
Ok – Most of the homes I am looking at are tile, so just not an issue. There is also the pool enclosure limitation and the fact they wont schedule stuff. When discussing the roof or screen pool enclosure limitations, insureds often seem more concerned with the ability to pay claims. I would buy coverage for my home with them or Lexington (higher value, need for schedules)way before one of the Demotech companies.
For someone calling themself Mr. Solvent, I still don’t get why the solvent companies aren’t higher on your list. (I know, I know AIG…solvent? Actually, we all know Lex was fine)
In a worst case scenario we have FIGA. I don’t like any of the options we have as agents but at lease if my Demotech carrier goes insolvent I can point to FIGA. If FIGA’s insolvent too I probably don’t have much of an E&O exposure…and we’ve got bigger problems than my E&O claim!
You people have absolutely no idea how Demotech ratings work! Incredible! Do any of you even know how expensive it is to get an A rating from Demotech?!
Is anyone concerned with the reality that of the top 25 property carriers(based on exposure in Florida) only two, ASI and Universal Insurance Company of North America, have an A rating with AM Best. Now that they are finished with Tower Hill, I wonder if they will be setting their sites on these carriers next…
All the while the following carriers are A rated with Demotech:
FSR as of August 25, 2009
11072 ACA Home Insurance Corp A”
12601 American Capital Assurance Corp A”
12968 American Coastal Insurance Co A
12841 American Integrity Insurance Co of FL A
12894 American Keystone Insurance Co S
10872 American Strategic Insurance Co A”
12359 American Traditions Insurance Co A
10203 Argus Fire & Casualty Insurance Co A
13038 Ark Royal Insurance Co A
12196 ASI Assurance Corp A”
13142 ASI Preferred Insurance Corp A”
12813 Auto Club Insurance Co of FL A
13139 Avatar Prop & Casualty Insurance Co A
33162 Bankers Insurance Co A
32930 Capacity Insurance Co A
10908 Capitol Preferred Insurance Co A
10835 Castle Key Indemnity Corp A’
30511 Castle Key Insurance Co A’
10953 Cypress Prop & Casualty Insurance Co A’
11996 Encompass Floridian Indemnity Co A’
11993 Encompass Floridian Insurance Co A’
27980 Federated National Insurance Co A
10186 Fidelity Fire & Casualty Co A
13990 First Community Insurance Co A
10149 First Home Insurance Co A
10897 First Protective Insurance Co A
10688 Florida Family Insurance Co A’
10132 Florida Peninsula Insurance Co A
12237 Gulfstream Prop & Casualty Insurance Co A
12306 Hillcrest Insurance Co A
12944 Homeowners Choice Property & Casualty Insurance Co A
11156 Homesite Insurance Co of Florida A’
12438 Homewise Insurance Co A
12582 Homewise Preferred Insurance Co A
13141 Magnolia Insurance Co A
12957 Modern USA Insurance Co A
10948 Nationwide Insurance Co of Florida A
12568 Northern Capital Insurance Co A
13023 Northern Capital Select Insurance Co A
12954 Olympus Insurance Co A
38644 Omega Insurance Company A
25755 Peachtree Casualty Insurance Co A
13125 Peoples Trust Insurance Co A
12538 Royal Palm Insurance Co A
12563 Safe Harbor Insurance Co A’
17248 Safeway Property Insurance Co A
13619 Sawgrass Mutual Insurance Co A
10117 Security First Insurance Co A
10136 Southern Fidelity Insurance Co Inc A
12247 Southern Oak Insurance Co A
10190 Southern‐Owners Insurance Co A”
11844 St Johns Insurance Co Inc A
13621 Star & Shield Insurance Exchange A
10860 Sunshine State Insurance Co A
29050 Tower Hill Preferred Insurance Co A
11027 Tower Hill Prime Insurance Company A
12011 Tower Hill Select Insurance Co A
10969 United Prop & Casualty Insurance Co A
11986 Universal Insurance Co of North America A’
10861 Universal Property & Casualty Insurance Co A
Universal North America is rated “NR” by A.M. Best when I checked. I believe their parent company is “A” rated by Best. Regardless your point is accurate.
You say that because you don’t have to write any non-admitted business here in FL! If you did, you would see how a pain-in-the-behind non-admitted business really is…. All of those damn forms, taxes, fees…. just kills you.
Sometimes I will have a good/competitive quote from a non-admitted carrier only to find out that AFTER I add-on all of the 7.5% of taxes and fees – which is RIDICULOUS – I am no longer competitive.
And also don’t forget that on a NON-ADMITTED market, the client needs to FINANCE the premium adding on an additional cost to the insured.
So before you say “I would prefer doing business with the Non-Admitted Market”, I think you should really taste it first before speaking out because as for me, if I had a choice I would go ADMITTED 100% of the time!
Royal Palm is managed by the Tower Hill group. They are not rated by AM Best but proudly maintain an A rating with Demotech. You be the judge. The who industry is a crap shot right now.
Great article,
It is very important for everyone to have health insurance.If you don’t have insurance and you have to go to hospital, you’ll have to pay over $20,000.That happened to a friend of mine.I know a site that offer the cheapest possible price for health insurance, free quotes and a lot of benefits.
When an insurance company says it is partnered with another company does that mean the parent company will pay claims if the other can not/
Ark Royal is partnered or managed by ASI
Generally not however in some cases there is a formal contract between the entities in regard to replenishment of surplus or providing other funds if needed.
Ark Royal is its own entity meaning ASI will not pay for their claim. They are no different than any other start up company using an MGA to manage their business. Actually they are one of the worse out there as they are 100% virtual.
ASI and universal North America came out of the box at A from Demotech when Best would not even look at them. I think This is proof that Demotech knows what it is doing and Best is a bunch of cry babies.
Demotech Haters, Get over it, they are the real deal. There isan independent FSU study in 2011 that documents that. Remember Mission, Ideal, New Jersey Life, Executive Life, PHICO, Villanova, Legion, Tower Group, what about fronting for he sake of being fronted …. None of that BS with Demotech.
All I know is I have been a Tower Hill Customer for years on end. I have never filed a claim. Beginning in 2005 my rates sky rocketed. from $1,600.00 in 2005 to $4,700.00in 2014. I just cancelled them. They exceeded the percentage the law governs on the rate increase. I was told the Florida Legislature has given most Florida HO insurance companies the green light on this. Of couse all backed by Gov. Rick Scott. I cant believe what Ive been through to get answers from my agent, They want you in the dark as much as possible. I just cancelled Tower hill…and lowered my premium by $2,400.00!!! same coverage!!! unreal company.
I am having to take them to court over damages caused by a simple kitchen fire. Contractors are refusing to work with me when they find out I am insured by Tower Hill Insurance. Renee Heston and Nancy Weber are the adjusters on my claim. Please, stay clear of Tower Hill. I have been out of my home, as it is still smoke damaged, since 3/15/2014. Today is 6/3/2014. I have yet to receive ANY additional living expenses, which are provided for by my policy. No payments have been made for my damaged contents. All costs are being bore by myself and they haven’t even offered a settlement but Tower Hill Insurance filed with the State Dept of Financial Services to go to mediation, instead of paying the claim or even making a decent offer.
I’m about to purchase a rental property and am looking for homeowners insurance and happened to come across this blog. Thank you for the information on Tower Hill. I checked on Demotech and of course it was A rated for FSR. I am still considering going to A. M. Best and research what they say. Does anyone know a good Florida Insurance company which is reliable, truthful, reasonable and affordable.
You want Reliable, truthful, reasonable and affordable? A M Best swears in court that it’s ratings can NOT be proven true or false, so do not use them. Check Regis Ins v. A. M Best as well as A M Best vs. SNL. Look elsewhere for true.
Tower Hill Insurance Group is not trying to write their way out of trouble the way POE did after the 2004 storm season. Still, this move is quite disturbing.
This is all the government’s fault for what’s happening. Regulating the rates so Charlie can look good on the consumer’s eyes. If the companies could set their own rates they could collect the proper premium to keep the reinsurance and their financials at good standings. Get rid of Charlie and bring someone that fights for our industry the way it should……Alex Sink.
Have no fear, I’m sure Demotech with step up with an A rating to preserve this carriers ability to write policies in Florida. As long as Charlie is running for office, everything will be ok….
Demotech has always rated these companies and they maintain the A rating as of my last check today.
A “D” reating is not good obviously. Many E&O carriers will exclude coverage should something financially go awry with Tower Hill. This means that some agencies with this restriction on their E&O will have to avoid Tower Hill. I wonder what impact that will have on Tower Hill. I also wonder who to beleive: Tower Hill or AM Best?
As a consumer, I would purchase coverage from Tower simply based on their understanding of the inherent weakness of the government reinsurance program (storm damage claims waiting for a bailout) and storm event projections.
AM Best needs to rethink these “chicken little” standards and quit reacting to government pressures to downgrade carriers as the debate over Fed control heats up.
I agree with Charley. I think my E&O carrier would have a lot to say about an agency retaining a “D” rated company in their agency. Just my opinion…
Good luck, at least in coastal counties, finding an admitted A.M. Best rated carrier offering homeowner coverage.
Since THIG has requested withdrawal from the A.M. Best system they will not be considered “D” by A.M. Best…they will remain Demotech “A” rated like most every other company offering coverage in Florida.
Having an agency relationship with THIG since before Hurricane Andrew I trust that they will be around long after most of the myriad of startup companies are rendered insolvent….and/or after the FHCF calls for a federal bailout.
Tower Hill is and will continue to be a Top Notch Insurance Carrier. From the CEO Bill Shively to Underwriters and CSR’s the Customer Service provided by Tower Hill is unsurpaced.
This Independent Agency stands with Tower Hill. Christ and AM Best need a clue!
GeoVera Specialty Insurance Company is a non-admitted AM Best A- rated insurer writing throughout Florida through wholesalers. This company charges adequate rates and buys appropriate reinsurance to stay in solid financial shape – even when the wind blows.
Cat business is their business.
Personally, if I were an agent in FL I would be going non-admitted as much as possible to stay out of the state mess!
I think it should be know that tower hill has over 400 employees. They have been around for close to 40 years and have survived storms such as Andrew and the havoc that the 2004/2005 seasons brought to the state. There are here alive and well, and arent running away like many companies before them and those who cant take the wind in the future. This agent will be selling Tower till the cows come home.
Are you out of your mind? Have you ever read a contract from some of these non-admitted carriers? Some of the exclusions and special provisions are enough to boggle the mind.
As far as E&O goes, that’s a disaster of a whole other nature. There are some E&O carriers who don’t mind what carriers you represent. Many of those carriers exclude carrier solvency.
Right on, Mr Solvent! I agree completely. Writing this non-admitted home business is risky!
THIG may have made the right move provided the reinsurance carrier is a strong reinsurer.
What exclusions are you talking about? I know there are some sinkhole limitations, but what else are you talking about? I have read the contract and it looks pretty good (and standard) to me.
I write Geovera as well as THIG. The first unusual limitation which comes to mind is the “roof coverage limitation” of $5,000 which applies if more than one layer of roofing over-layment exists. I am sure there are others but I don’t have the policy form handy.
THIG, is fine. Which rating is better? A “D” from A.M. Best or an “A” from Demotech for a carrier that couln’t even get a return phone call from A.M Best.
This whole thing is making me nervous about Tower Hill. Are they really making the financial sacrifice for reinsurance so that they can pay claims should we get hit with a storm as part of good service; or are they just financially strapped. Poe had a lot of good arguments on their financial stability before they went under.
Tower Hill is a great organization. Hopefully they will weather this storm. (Pun intended)
Is Royal Palm part of Tower Hill?
Are they affected?
The $5,000 roof limitation is also one of the GeoVera limitations I was thinking of. If you think it’s a standard contract I would hate to be your E&O carrier.
Ok – Most of the homes I am looking at are tile, so just not an issue. There is also the pool enclosure limitation and the fact they wont schedule stuff. When discussing the roof or screen pool enclosure limitations, insureds often seem more concerned with the ability to pay claims. I would buy coverage for my home with them or Lexington (higher value, need for schedules)way before one of the Demotech companies.
For someone calling themself Mr. Solvent, I still don’t get why the solvent companies aren’t higher on your list. (I know, I know AIG…solvent? Actually, we all know Lex was fine)
In a worst case scenario we have FIGA. I don’t like any of the options we have as agents but at lease if my Demotech carrier goes insolvent I can point to FIGA. If FIGA’s insolvent too I probably don’t have much of an E&O exposure…and we’ve got bigger problems than my E&O claim!
You people have absolutely no idea how Demotech ratings work! Incredible! Do any of you even know how expensive it is to get an A rating from Demotech?!
Is anyone concerned with the reality that of the top 25 property carriers(based on exposure in Florida) only two, ASI and Universal Insurance Company of North America, have an A rating with AM Best. Now that they are finished with Tower Hill, I wonder if they will be setting their sites on these carriers next…
All the while the following carriers are A rated with Demotech:
FSR as of August 25, 2009
11072 ACA Home Insurance Corp A”
12601 American Capital Assurance Corp A”
12968 American Coastal Insurance Co A
12841 American Integrity Insurance Co of FL A
12894 American Keystone Insurance Co S
10872 American Strategic Insurance Co A”
12359 American Traditions Insurance Co A
10203 Argus Fire & Casualty Insurance Co A
13038 Ark Royal Insurance Co A
12196 ASI Assurance Corp A”
13142 ASI Preferred Insurance Corp A”
12813 Auto Club Insurance Co of FL A
13139 Avatar Prop & Casualty Insurance Co A
33162 Bankers Insurance Co A
32930 Capacity Insurance Co A
10908 Capitol Preferred Insurance Co A
10835 Castle Key Indemnity Corp A’
30511 Castle Key Insurance Co A’
10953 Cypress Prop & Casualty Insurance Co A’
11996 Encompass Floridian Indemnity Co A’
11993 Encompass Floridian Insurance Co A’
27980 Federated National Insurance Co A
10186 Fidelity Fire & Casualty Co A
13990 First Community Insurance Co A
10149 First Home Insurance Co A
10897 First Protective Insurance Co A
10688 Florida Family Insurance Co A’
10132 Florida Peninsula Insurance Co A
12237 Gulfstream Prop & Casualty Insurance Co A
12306 Hillcrest Insurance Co A
12944 Homeowners Choice Property & Casualty Insurance Co A
11156 Homesite Insurance Co of Florida A’
12438 Homewise Insurance Co A
12582 Homewise Preferred Insurance Co A
13141 Magnolia Insurance Co A
12957 Modern USA Insurance Co A
10948 Nationwide Insurance Co of Florida A
12568 Northern Capital Insurance Co A
13023 Northern Capital Select Insurance Co A
12954 Olympus Insurance Co A
38644 Omega Insurance Company A
25755 Peachtree Casualty Insurance Co A
13125 Peoples Trust Insurance Co A
12538 Royal Palm Insurance Co A
12563 Safe Harbor Insurance Co A’
17248 Safeway Property Insurance Co A
13619 Sawgrass Mutual Insurance Co A
10117 Security First Insurance Co A
10136 Southern Fidelity Insurance Co Inc A
12247 Southern Oak Insurance Co A
10190 Southern‐Owners Insurance Co A”
11844 St Johns Insurance Co Inc A
13621 Star & Shield Insurance Exchange A
10860 Sunshine State Insurance Co A
29050 Tower Hill Preferred Insurance Co A
11027 Tower Hill Prime Insurance Company A
12011 Tower Hill Select Insurance Co A
10969 United Prop & Casualty Insurance Co A
11986 Universal Insurance Co of North America A’
10861 Universal Property & Casualty Insurance Co A
Somethings out of balance here….
Universal North America is rated “NR” by A.M. Best when I checked. I believe their parent company is “A” rated by Best. Regardless your point is accurate.
You say that because you don’t have to write any non-admitted business here in FL! If you did, you would see how a pain-in-the-behind non-admitted business really is…. All of those damn forms, taxes, fees…. just kills you.
Sometimes I will have a good/competitive quote from a non-admitted carrier only to find out that AFTER I add-on all of the 7.5% of taxes and fees – which is RIDICULOUS – I am no longer competitive.
And also don’t forget that on a NON-ADMITTED market, the client needs to FINANCE the premium adding on an additional cost to the insured.
So before you say “I would prefer doing business with the Non-Admitted Market”, I think you should really taste it first before speaking out because as for me, if I had a choice I would go ADMITTED 100% of the time!
Royal Palm is managed by the Tower Hill group. They are not rated by AM Best but proudly maintain an A rating with Demotech. You be the judge. The who industry is a crap shot right now.
You do understand that Demotech is a purchased rating for an insurance company because they are either a new or a takeout company.
Great article,
It is very important for everyone to have health insurance.If you don’t have insurance and you have to go to hospital, you’ll have to pay over $20,000.That happened to a friend of mine.I know a site that offer the cheapest possible price for health insurance, free quotes and a lot of benefits.
http://www.NationalHealthInsurance.info
When an insurance company says it is partnered with another company does that mean the parent company will pay claims if the other can not/
Ark Royal is partnered or managed by ASI
Would ASI be responsible foe Ark Royal
Generally not however in some cases there is a formal contract between the entities in regard to replenishment of surplus or providing other funds if needed.
Ark Royal is its own entity meaning ASI will not pay for their claim. They are no different than any other start up company using an MGA to manage their business. Actually they are one of the worse out there as they are 100% virtual.
If they are separate corporations, then no.
THEIR RATINGS ARE NOT WOTH THE PAPER THEY ARE PRINTED ON
HELLO RISKMGR,
DO YOU THINK TOWER HILL AND DEMOTECH HAVE ANY OTHER RELATIONSHIP BESIDES THE PAID RATINGS AS GARY ROWLAND SAYS.
ASI and universal North America came out of the box at A from Demotech when Best would not even look at them. I think This is proof that Demotech knows what it is doing and Best is a bunch of cry babies.
ASI and Universal North America were rated by Demotech more than ten years before Best rated them.
Not recommend it, dubious way to do business
Don’t do business with this Insurance Co. they are liers
Demotech Haters, Get over it, they are the real deal. There isan independent FSU study in 2011 that documents that. Remember Mission, Ideal, New Jersey Life, Executive Life, PHICO, Villanova, Legion, Tower Group, what about fronting for he sake of being fronted …. None of that BS with Demotech.
All I know is I have been a Tower Hill Customer for years on end. I have never filed a claim. Beginning in 2005 my rates sky rocketed. from $1,600.00 in 2005 to $4,700.00in 2014. I just cancelled them. They exceeded the percentage the law governs on the rate increase. I was told the Florida Legislature has given most Florida HO insurance companies the green light on this. Of couse all backed by Gov. Rick Scott. I cant believe what Ive been through to get answers from my agent, They want you in the dark as much as possible. I just cancelled Tower hill…and lowered my premium by $2,400.00!!! same coverage!!! unreal company.
What company did you go with gl smith?
just say no to Tower Hill.
I am having to take them to court over damages caused by a simple kitchen fire. Contractors are refusing to work with me when they find out I am insured by Tower Hill Insurance. Renee Heston and Nancy Weber are the adjusters on my claim. Please, stay clear of Tower Hill. I have been out of my home, as it is still smoke damaged, since 3/15/2014. Today is 6/3/2014. I have yet to receive ANY additional living expenses, which are provided for by my policy. No payments have been made for my damaged contents. All costs are being bore by myself and they haven’t even offered a settlement but Tower Hill Insurance filed with the State Dept of Financial Services to go to mediation, instead of paying the claim or even making a decent offer.
RUN DONT WALK FROM TOWER HILL INSURANCE.
I’m about to purchase a rental property and am looking for homeowners insurance and happened to come across this blog. Thank you for the information on Tower Hill. I checked on Demotech and of course it was A rated for FSR. I am still considering going to A. M. Best and research what they say. Does anyone know a good Florida Insurance company which is reliable, truthful, reasonable and affordable.
You want Reliable, truthful, reasonable and affordable? A M Best swears in court that it’s ratings can NOT be proven true or false, so do not use them. Check Regis Ins v. A. M Best as well as A M Best vs. SNL. Look elsewhere for true.
I notice all these comments are from August 27,2009 thru September 8.2014. why are they so out of date?