Find Affordable Homeowners Insurance

Fеdеrаtеd National (FedNat) Home Inѕurаnсе Review 

Federated National (FedNat) Home Insurance Review

Fеdеrаtеd National (FedNat) Home Inѕurаnсе Review 

Federated National Insurance Company or short ‘FedNat’, is a Florida-based home insurance company that was founded in 1992 and provides home insurance to Florida residents. FedNat is one of the oldest & long-standing home insurance companies in Florida and it’s based out of Sunrise, FL. The company is rated “A” for high financial stability and is part of the Better Business Bureau.

FedNat has a reputation for offering lower premium rates than the Florida state average, and they are the only insurance company aside from Citizens to cater to Spanish speakers.

FedNat offers a range of insurance policies, from standard multi-peril HO-3s to condominium policies and emergency flood policies. FedNet is partnered with SageSure Insurance Managers and has expanded reach to states such as South Carolina, Louisiana, Alabama and Texas. FedNat’s long-standing history has allowed it to partner with many licensed insurance carriers as well as the capability to adjust to 3rd party insurance carriers. The company focuses on providing low insurance premiums and fast claim processing for customers. It’s one of the most reliable companies as it’s already paid out more than $2,500,000,000 in claims for customers. FedNat paid out over $400M during Hurricane Katrina and $300M during Hurricane Irma.

FedNat insurance policies provide coverage for the following:

  • Homes (standard HO-3 plans)
  • Premium homes (luxury mansions or historic high-value homes)
  • Condominium units
  • Rental units
  • Flood insurance
  • Umbrella insurance
  • Storm Peace (72-hour payouts during storms)

Financial Ratings

The company is in excellent financial standing. It received an A rating from one of the oldest and most reputable institutions – DemoTech, which rates insurance companies based on their financial standing since 1985. FedNat was also rated A+ by the Better Business Bureau. While FedNat wasn’t rated by the major financial institutions such as S&P, AM Best and Moody’s, it has a long-standing history for paying out billions in damages and claims. FedNat is one of the largest and most reliable companies in the state of Florida, and they were one of the few companies that didn’t go bankrupt during Hurricane Katrina. They’ve been providing their services since 1992, and have paid out in excess of $2.5B in claims.

Insurance Plans

FedNat does not reveal their insurance plan prices on their website – they urge clients to enter their zip code and reach out to the nearest agent for options. Many insurance companies do this because prices vary based on the location – some towns in Florida are more hurricane-prone and their policies are more costly than others. FedNat is known for low prices, and an agent contacts a client about an inquiry and presents them with a list of policy options to choose from. Their policies are always below the market average and provide fair rates. FedNat’s most popular plan is the homeowner HO-3, while they have high-value plans that cater to wealthier citizens and emergency-payout plans as well.

HO-3

FedNat’s HO-3 is the most popular plan the company offers – most average homes in the state of Florida will be able to qualify for FedNat’s HO-3 policy. FedNat’s HO-3 is only available to homeowners who reside in their home as their primary residences. This insurance policy does not cover renters or second homes. This policy will protect your most valuable assets and your family, and in case of an emergency, the company will deploy repair agents to help clients on the spot. Agents provide multiple coverage options and clients can choose add-ons and payment installments.

High-Value Home Insurance

Each home is evaluated by FedNat before approval, and if a client’s home exceeds the average (usually for homes over $750,000) they will likely require an excess insurance policy. FedNat specialists have come up with a High-Value Home insurance policy that provides wealthier residents the additional coverage they need. FedNat agents will arrive at a home to evaluate the location, the characteristics and then draft up a policy that provides maximum coverage for the home without excessively overcharging clients for policies. If you contact an agent you might be able to get a quote without an evaluation.

Flood Insurance

In Florida, flood insurance policies are offered independently to standard HO-3s and FedNat is not an exception. Their flood insurance policy is cheap and can be added to your existing HO-3 plan as an add-on. Florida is the most flood-prone state in the U.S. and almost 50% of all insurance claims in the state are for flood-related accidents – this is why insurance companies almost never offer flood coverage as part of the standard plan. Floods are 26x more common in Florida than fire accidents. FedNat agents can assist you by adding a flood insurance policy to your existing plan. Clients can also insure their homes against floods exclusively (if they choose to opt without an HO-3 plan).

Umbrella Insurance

FedNat’s umbrella policy can help you get coverage for things you never expected – such as your neighbors suing you or coverage your auto insurance company left out. American society is very litigious and the settlements are only larger, therefore a simple accident could hold you liable for thousands in damages which aren’t covered by your existing insurance. FedNat’s umbrella plan prepares clients for complete financial security, and their experts guarantee clients have a layer of financial security for unexpected expenses, where mere homeowners policies don’t get the job done.

StormPeace – 72h Payouts

FedNat invented a new 72-hour guaranteed payout system for hurricane protection – in Florida a hurricane can destroy or heavily damage your home, and clients require cash immediately in order to hire contractors. FedNat’s StormPeace plan guarantees clients will receive a payment within 72 hours of the accident. If the hurricane is strong, clients will be entitled to a larger payment. All hurricane-prone areas in the state of Florida are eligible for this policy.

Policy Purchases

Unfortunately, the company doesn’t reveal a lot of policy prices on their website – clients have to find agents that sell in their area and contact them for details. Their agents are present in most towns in Florida and you can find your nearest agent by entering your zip code on their website.

FedNat provides the possibility to seek out a quote without contacting an agent. If you fill out their questionnaire, they will provide a summary that your information was sent out and an agent will email you your options directly.

Reassurance

FedNat has an opulent reassurance program – their program was designed to withstand heavy payout requests during major hurricanes. FedNat’s current limit is $2.2B or a maximum single-event limit of $1.56B. Considering the heaviest storms have cost the company below $400M, it’s easy to predict that FedNat will be capable of paying out your claims if the need arises.

Customer Reviews

FedNat receives positive feedback and praise from customers for great customer service, not only during the initial stages while they collect premiums – but when clients call them for claims and make payouts. Customers frequently praise FedNat’s speediness and how responsive they are to claims, by deploying teams on-site and helping them make repairs. FedNat teams also make sure all charges are covered and the client has the money necessary to cover their contractors. FedNat has a reputation for being one of the most reliable insurance companies in the state of Florida. 

Leave a Comment