- Inexpensive premiums are possible.
- Multiple insurance products are available.
- Available in all 50 states.
- No online quote tool.
- The website doesn’t provide tons of information.
- Customers are outraged by their customer service.
For more than three decades, Pacific Specialty Insurance Company has provided customers with its insurance services. Their operations extend to all 50 states, including the District of Columbia, and they are headquartered in Anaheim, California.
From homeowners policies to earthquake insurance and more, this insurance elder has insurance products that serve the better part of America.
A typical statement from Pacific Specialty declares that they are run differently than most insurance companies. They say they listen a little closer and move a little faster. We’re here to put these allegations to rest.
Come along with us for a review of Pacific Specialty home insurance. Do their premium prices match their offered coverages? Are they financially stable enough to keep providing services for 30 more years to come?
We’ll see just how their notion of doing things differently is working out for them and their customers. Speaking of their customers, we’ll even get some details straight from the horse’s mouth to see what they think of their home insurer.
Pacific Specialty homeowners insurance coverages & premiums
Customers have had conversations surrounding the prices and available coverages for Pacific Specialty. Their opinions seem to match across the internet. Many reviews declare that Pacific Specialty insurance offers more affordable premiums than the competition. One reviewer recalls getting a 700-dollar lower quote from Pacific Specialty compared to another insurer. Some customers complain that their coverage is lacking. One insured warned potential customers to look into other characteristics of Pacific Specialty before going off their low price.
Determining the suitable amount for your homeowners’ insurance policy is highly significant. You need to discover the replacement cost of your home and ensure that your insurer is prepared to meet that standard.
Pacific Specialty works with agencies. They don’t have an online quote tool, so, to find the perfect quote, you’ll need to speak with one of their experts. These agents use advanced tools to analyze the basic features of your home and advise you on appropriate coverage options.
We can tell you that Pacific Specialty works with basic home insurance coverage. This includes:
- Coverage A – Dwelling: The complete cost of replacing the property without factoring in depreciation shall be covered by the policy.
- Coverage B – Other structures: The amount covered for unattached structures on insured premises is 10% of the Coverage A limits.
- Coverage C – Personal property: Policyholders can enjoy coverage for unscheduled personal property at 50% of Coverage A without depreciation deductions. However, certain items of higher value might be assigned separate limits.
- Coverage D – Loss of use: This covers the costs associated with an uninhabitable living space for 20% of Coverage A limits.
- Coverage E – Personal liability: This covers $100,000 worth of expenses related to personal liability, like lawsuits.
- Coverage F – Medical payments: This covers expenses for minor medical payments to others. These limits may be $1,000 per person.
Pacific Specialty’s additional coverages
Additional coverages offered by Pacific Specialty include:
- Debris removal
- Plants, trees, and shrubbery
- Fire department service charge
- Assessment of loss
- Credit, debit, and money transfer cards
- Collapse
Pacific Specialty Insurance also offers earthquake and flood insurance. Their earthquake insurance generated more than $18 million in premiums last year. This coverage provides up to $2.5 million in protection against earthquake-related damage to both the property, and its contents, as well as up to $100,000 in reimbursement for lost use.
Their earthquake insurance can be purchased by consumers either separately or as an add-on to their current home policy. In addition, Pacific customers can opt to improve their earthquake policies to provide coverage for pools and high-value items stored inside the house.
Pacific Specialty home insurance discounts
Now, let’s take a look at Pacific Specialty’s discounts. There are a couple of discounts and price-flexibility options available for Pacific Specialty homeowners. For starters, you can save money when you bundle a home insurance policy with any other carrier’s auto insurance.
According to Pacific Specialty, it’s easy to personalize your insurance policy with certain coverage options that are better aligned with your needs. For example, they have deductibles that range from as little as $500 to as much as $5,000. Playing around with these may make it easier to get cheaper rates.
Furthermore, they have flexible payment options to allow your policy to work with your budget.
In total, they say that their discounts can save you up to 50% on your annual premium. This may be why their prices are so competitive.
Pacific Specialty homeowners insurance claims processes
The claim department for Pacific Specialty can be reached through multiple channels such as fax, phone, or email. Additionally, Pacific Specialty offers an online customer portal where you can file and track your claims at any time, keeping you informed on the progress of your claim.
There was a small number of complaints against Pacific Specialty homeowners insurance in 2022. These were the main gripes:
- Delays
- Unsatisfactory Settlements
- Denials
According to customers, their claims process is either hit or miss. We read reviews from some customers stating it took more than 7 weeks to get the ball rolling on their claims and are still awaiting a payout. Other reviews are more along the lines of praise, saying their claims process was professional, efficient, and helpful.
Pacific Specialty’s customer reviews
It was very easy to find complaints regarding specific customer service issues from Pacific Specialty. Many different customer reviews recall adjusters and investigators that make their customers feel like criminals. Some say they’ve felt undermined, insulted, and disrespected on multiple occasions.
This trend keeps going across the internet. No matter where you look, they are getting a bad rap for treating customers rudely and unfairly. Even the term “racist” is being thrown out there in several customer reviews.
On Google, Pacific Specialty has a 3.9-star rating from 258 customers as of April 2023. While there are some positive reviews, there are many negative ones as well complaining that customer service is rude and condescending, dismissive and cold.
As far as the NAIC goes, their level of complaints shows just the opposite. With a score of just 0.62 on the National Complaint Index, Pacific Specialty had just below the average number of complaints in 2022. Of those complaints, homeowners insurance takes the cake.
Pacific Specialty’s financial strength
Concerning financial strength, Pacific Specialty holds a less-than-average vantage point.
For starters, (and for the first time in our experience) the BBB has given Pacific Specialty a solid “F” rating. An “F” is the lowest rating you can get from the BBB. This rating is relevant to Pacific Specialty because of:
- Failure to respond to 9 complaint(s) filed against them
- 46 complaints filed against them
- 1 complaint was filed against them and was not resolved
On a lighter note, Pacific Specialty has an A- rating from AM Best. This rating is for their financial strength and long-term issuer credit. They’ve maintained this rating for several years now.
Weiss Ratings has provided Pacific Specialty with a C- in insurance safety. This means Pacific Specialty is among the lower third of currently stable companies that display fair financial security.
They still believe that, during an economic downturn or other financial pressures, Pacific Specialty may encounter difficulties maintaining its financial stability. These findings were due to:
- Poor long-term capitalization index based on weak current risk-adjusted capital.
- Vulnerable liquidity as a spike in claims may stretch capacity.
- Weak overall results on stability tests, including weak risk-adjusted capital in prior years.
- Good overall profitability index, despite operating losses during 2017 and 2018.
- Low return on equity, averaging 2.5% over the past five years.
- Ample reserve history that helps protect the company against sharp claims increases.
Finally, Demotech has not provided a rating for Pacific Specialty.
Our final thoughts
Thanks to its vast network of agents and long-term stature, Pacific Specialty has earned its stripes in the insurance industry. For a business to run in all 50 states, this insurance elder keeps a low profile.
Pacific Specialty offers basic coverages and lots of insurance products to insure a person’s home, boat, car, and more. Their prices are inexpensive enough to make a person want to jump on the chance of becoming another policy under Pacific Specialty’s belt. Some customers advise against this, though.
Their customers know better than anyone if a cheaper rate is worth a cheaper service. As they say, you get what you pay for, and that seems to be the case with Pacific Specialty insurance.
For standard coverage, you may get a cheap rate. You also run the risk of being treated unfairly by their team of professionals and agents. Furthermore, that inexpensive rate may also come with a shoddy and stingy claims process.
Overall, if you’re looking for cheaper home insurance, you might find it with Pacific Specialty. We’re here to tell you to err on the side of caution, though. We want you to be treated humanely with as little struggle as possible, and that may not be the case with this insurer.
