Your sister-in-law in Westchester calls you excitedly: she found a quote for homeowners insurance 35% cheaper than what you're paying today. The problem is, the company has a name you've never heard of. "But is it reliable?" you ask. And the truth is, that's exactly the right question.
Since 2023, following Florida's insurance market reforms, more than a dozen New insurance companies in Florida They received approval to sell homeowners insurance policies in the state. Some are solid and well-capitalized. Others of these new insurers in Florida are startups that haven't even experienced their first major hurricane yet. And you discover the difference between them at the worst possible moment: when you have to file a claim.
Here we explain it to you, in Spanish and without fine print, How to tell if a new insurance company in Florida is safe before signing — using the same tools we use when comparing companies for a family.
Why did so many new insurance companies enter Florida in 2026?
Between 2020 and 2022, the homeowners insurance market in Florida was on the verge of collapse. Lawsuits and roof scams caused many companies to lose money or leave the state. Several went bankrupt. FedNat, United Property & Casualty (UPC) and Southern Fidelity These are three of the cases that left thousands of families searching for insurance overnight.
In December 2022, the Florida legislature passed a major reform (SB 2-A) that reduced litigation and restored confidence in insurance companies. The result: new capital began flowing into the state. By 2025 and 2026, the Florida Office of Insurance Regulation (Florida OIR) had already approved several new companies to write homeowners insurance policies.
That's good for you: More competition means better pricesMany Hispanic families in Miami-Dade, Broward, and the rest of Florida are seeing lower mortgage rates for the first time in years. But "cheaper" and "safer" don't always go hand in hand.
The danger of choosing based solely on price
When one of the companies mentioned above went bankrupt, this is what happened to its customers:
- Their policies were cancelled or transferred to another company with little notice.
- The claims that were open were transferred to a state guarantee fund, with delays of months.
- Many had to go out and look for new coverage in the middle of hurricane season, when it is more difficult and expensive to obtain.
The lesson is clear: The cheapest insurance company is useless if it's not there when you need it.Therefore, before switching to a new company, there are two things you absolutely must check.
AM Best and Demotech: the two rating agencies you need to check out
There are independent agencies that rate the financial strength of the insurers—that is, how capable they are of paying claims. In Florida, two things matter:
- AM BestThe most recognized rating agency nationally. It uses a scale from A++ (the strongest) to D. A rating of A- or better It is considered solid. Many large, established companies have an AM Best rating.
- DemotechA rating agency specializing in regional insurers in Florida. Its key rating is the «A» (Exceptional)Most new Florida companies use Demotech, not AM Best, because they are smaller. An "A" in Demotech is the minimum required by banks to approve a mortgage.
What does this mean for you? If the new company that quoted you has a Demotech rating of "A" or an AM Best rating of "A-" or better, that's a good sign. If It has no rating in either of the twoThat's a big red flag.
How to check an insurance company's rating in 5 minutes
You don't need to be an expert. Just follow these steps:
- Write down the company's full legal name (it's on the quote or the policy declarations page).
- Go to the page of AM Best (ambest.com) and search for the name in their ratings search engine. It's free.
- If it doesn't appear in AM Best, search in Demotech (demotech.com). Florida companies are almost always in one of the two.
- Confirm that the rating is «A» (Exceptional) in Demotech either "A-" or better in AM Best.
- Also verify that the company is authorized by the Florida OIR (You can find it at floir.com).
If you're feeling lazy or unsure what you're looking at, that's exactly what we do for you when we compare companies. We won't give you a quote from any insurer that doesn't pass this filter.
Warning signs: how to spot unreliable new insurance companies in Florida
In addition to the rating, pay attention to these red flags:
- The price is well below market value. (More than 30-40% cheaper than all other quotes). If it seems too good to be true, it probably is.
- The company has been operating for less than 2-3 years. and it still hasn't paid claims from a major hurricane.
- You can't find reviews or clear information how they handle complaints.
- They pressure you to sign quickly. without giving you time to compare.
What happens if your insurance company goes bankrupt?
Florida has a safety net called FIGA (Florida Insurance Guaranty Association)If your company goes bankrupt, FIGA will take over outstanding claims—but with limits. FIGA has a cap per claim (currently around $500,000 for home insurance policy) and a deductible applies. It doesn't cover everything, and payments can be delayed.
Translation: FIGA is a safety net, not a replacement for having good insurance from the start. It's much better to choose well the first time than to rely on the state to bail you out later.
Not sure if your insurance company is reliable?
We compare over 100 companies and only provide you with quotes from those that pass our financial strength filter. Free of charge and in Spanish.
How to compare two quotes without making a mistake
Once you've confirmed the insurer is financially sound, it's time to compare prices—and this is where many people go wrong, because they only look at the monthly premium and not what the policy actually covers. Two home insurance quotes in Florida can look the same but be very different in terms of coverage.
These are the points you need to compare line by line before deciding:
- Coverage A (structure): Does it cover the actual cost of rebuilding your home today, or just the depreciated value? Look for one that says "replacement cost" and not "actual cash value", because the second one pays you less.
- Hurricane deductible: In Florida, it's separate from the regular deductible and is usually a percentage (2%, 5%, or 10%) of the home's value. A low premium often masks a very high hurricane deductible that you pay first.
- Water and roof coverage: Check if there are limits or exclusions for water damage or roof age. These are the most common claims in Florida.
- Liability coverage and temporary housing expenses: If your house becomes uninhabitable, who pays the rent while it's being repaired?
A new, well-rated insurer that charges a bit more but offers replacement cost coverage and a reasonable hurricane deductible is almost always a better deal than the cheapest one with unfavorable fine print. Properly comparing these factors is exactly the job of an independent agent: we put the quotes side-by-side and explain what each number means in real money.
Should you switch to a new carrier or stick with Citizens?
Many people in Florida are with CitizensCitizens, the state-run insurer of last resort, is stable, but by law requires you to switch to the private market if you find a private quote that is no more than 20% more expensive. That's why it's worth comparing.
A new, well-rated private company (Demotech "A" or AM Best "A-") can offer you better price and better coverage Citizens, without the risk of the assessments that Citizens can charge after a major hurricane. The key, again, is to verify their financial strength before switching. Not all new insurers in Florida are created equal.
If you're unsure whether to stay with Citizens or switch to a private school, it's best to have an independent expert compare both options side-by-side with real numbers. That's what we do for Hispanic families in Florida every day.
What to look for before choosing a new insurance company in Florida
Every year, new insurance companies appear in Florida, and many offer attractive prices to win customers. A low price isn't always a good sign: what matters is that the company can respond when you have a claim. This table summarizes the signs to look for before signing up; an independent agent can help you evaluate them.
| What to review | Why it matters |
|---|---|
| Financial strength rating | Indicates whether you will be able to pay future claims |
| Time in operation and reputation | Very new ones have less verifiable history |
| How does he/she handle complaints? | A low price is useless if payments are delayed or refused. |
| Real coverage against hurricane and flood | Florida is where the policy is most tested |
| Spanish-speaking customer service and local support | It makes it easy to resolve doubts and complaints without obstacles. |
Common mistakes
- Choose only the lowest price: A cheap premium is useless if the company doesn't respond to a claim.
- Ignoring the financial rating: A new insurer without backing can leave you without real coverage.
- Not reading the exclusions: Check what's excluded, especially in flood and hurricane coverage, before signing.
Frequently asked questions about choosing an insurance company in Florida
Is it safe to hire a new insurance company in Florida?
Yes, provided it has a good financial strength rating. Verify that it has a Demotech "A" (Exceptional) or AM Best "A-" rating or better, and that it is authorized by the Florida OIR. A new company with a good rating can be as safe as a traditional one, and often cheaper.
Which is better, AM Best or Demotech?
It's not that one is better than the other; they just look at different things. AM Best is the most recognized national rating agency and is used by large companies. Demotech specializes in regional insurers in Florida, which are mostly newer companies. The important thing is that your insurer has a good rating from at least one of the two.
What happens to my claims if my insurance company goes bankrupt?
In Florida, the Florida Insurance Guaranty Association (FIGA) covers outstanding claims, but with a cap (around $500,000 per homeowners policy) and a deductible. Payments can take months. That's why it's best to choose a financially sound company from the start.
Why is my new quote so cheap?
It could be due to new competition in the Florida market, which is legitimate and good for you. But if a quote is more than 30-40% cheaper than all the others, check that company's financial strength before signing. A price that's too low sometimes indicates a weak insurer.
Is it worth leaving Citizens for a private company?
It depends. By law, Citizens requires you to switch to the private market if you find a quote that's no more than 20% more expensive. A newer, well-rated private company can offer better pricing and coverage, and avoids the assessments Citizens might charge after a hurricane. It's best to compare both options side-by-side with an independent expert.
Sobre YR Insurance Services
EN YR Insurance Services For 14 years, we've been protecting Hispanic families in Florida. As an independent insurance agency, we compare over 100 companies to get you the best rates on auto, home, business, health, or life insurance. Learn why thousands of Hispanics in Florida choose us. YR Insurance Services year after year. Cotiza gratis con YR Insurance Services Right now — we provide 100% Spanish-speaking service.