- Offers coverage to high value homes ($750k to $3 million).
- Price is comparable to national average.
- Great claims service.
- Only available in TX and FL.
- Customer experience is quite poor.
- Little to no information about coverage and discounts on their website.
- No online quote.
Velocity Risk is a specialty insurer. They offer business and homeowners insurance. The company is headquartered in Nashville, Tennessee and has a few other regional offices. The company has about 150 employees and boasts about being around 20% owned by employees. When it comes to home insurance, Velocity Risk specializes in providing home insurance to homeowners along the Gulf Coast that are at a high-risk of a hurricane or other potential major storm.
Velocity Risk specifically focuses on homes that are of higher value, usually only insuring homes over $750,000 in value. They typically serve some of the riskiest homes that cannot find coverage elsewhere. For residents of the Gulf Coast that may fit into these boxes, Velocity is a great option for you to purchase home insurance and their policies are surprisingly affordable considering its specialization.
Where does Velocity Risk offer home insurance?
According to Velocity Risk’s website, they currently offer coverage in Texas and Florida, specifically along the coast of those two states where homeowners are at the highest risk of wind and hail damage. Their website also states their plans to begin offering coverage to residents in Alabama, Mississippi, North Carolina, and South Carolina soon.
Homeowners coverages offered by Velocity Risk
Velocity Risk offers standard home insurance policies with a couple keep additional coverages.
The standard policy sections include:
- Dwelling: coverage for damage that occurs to the structure of the home or any attached structures
- Other structures: this coverage protects any structures on the property not attached to the home.
- Personal property: coverage to repair or replace personal belongings such as furniture, clothing, or electronics.
- Loss of use: protection for additional living expenses incurred while the home is being repaired or rebuilt to make it habitable again
- Personal liability: coverage for any lawsuits that might arise from injuries or damages to others where the homeowner is found to be at fault
- Medical payments to others: protection for any injuries that may occur to a guest on the property no matter who is found to be at fault
Additional coverage offered
Velocity Risk offers two important additional coverages for homeowners who are living on the coast of Texas and Florida. These two additional coverages are:
- Wind and hail coverage: homes in Florida and Texas and the states Velocity plans to begin offering coverage to homeowners that are at high risk of sustaining wind and hail damage through major storms such as a hurricane. This coverage protects the homeowner from damage sustained from wind or hail.
- Water damage: This coverage protects the homeowner from any flooding damage that is due to a water backup.
Coverage Limits
Velocity Risk has some coverage limits along with some requirements for a home to be insured by the company. Velocity Risk’s website states that they specialize in insuring homes that are located in counties that are within 10 miles of the coast in Texas and Florida. They also require the homes in those counties they serve to be of at least $750,000 in value. Velocity Risk’s dwelling coverage (coverage A) maximum limit is $3 million. While it is not confirmed, it is safe to assume that the other coverages included in their standard home insurance policies have a coverage limit that is a percentage of the dwelling coverage limit.
Cost of Velocity Risk homeowners insurance
With Velocity Risk being so specialized in the homes and locations that they serve, it would be expected for the cost of a home insurance policy with the company to be quite expensive. Based on our research, Velocity Risk is actually quite comparable to the national average cost. Insurance companies that offer a $750,000 dwelling coverage limit will on average cost around $4,000 per year and Velocity Risk’s premium cost is right around that number as well.
Discounts available
Unfortunately, we were not able to determine if Velocity Risk offers any discounts. There doesn’t seem to be any discounts that they offer, which is a major drawback of the company that homeowners should take into account when shopping for coverage. This isn’t confirmed so it is important to talk with a Velocity agent to see what discounts may be available to you in your individual situation.
Claims reviews
The few reviews of the claims process we could find were positive, stating that the company was very helpful and timely, walking the homeowners through the whole process. It looks like Velocity gives homeowners the ability to start the claims process online via the website which is a positive and they do state the number that homeowners can call to talk with an agent to start the process as well. They have a great claims page that also has an FAQ to help answer commonly sked questions regarding claims.
Customer experience
According to the reviews that we could find, the overall customer experience with Velocity Risk is negative. Many homeowners state how the company has not renewed their policy without telling the homeowners. The reviews also state that the company drags its feet in any sort of communication and raises rates unexpectedly. There are also complaints about the company not actually covering hurricane damage when people have opted for that coverage.
People seem to believe that Velocity Risk is a scam. Obviously, this is a drawback of the company. Their public image is not great. Homeowners looking for coverage should consider shopping around and comparing Velocity to other companies in order to determine which is the right fit for the homeowner.
As of May 2023, Velocity Risk has earned a 2.7-star rating on Google from 33 reviews.
Financial strength
Velocity Risk has an A Rating from AM Best, which is the third highest rating that a company can obtain. This shows that they have very good financial health. An A rating means that even when an event happens where many claims come in at once, the company has the ability to meet its financial obligations and survive in ok health. This is a major positive of the company. A good financial rating always is a good sign for homeowners looking for coverage. Unfortunately, Velocity Risk is not rated by the other two major credit rating agencies, Standard & Poor’s and Moody’s.
Resources
Here are some resources to help you if you are looking for coverage with Velocity or are already a policyholder:
- Getting a quote: Quotes are available at Velocity risk by calling 844-878-7529 to connect with a local agent.
- Questions or other customer service-related situations: You can call a Velocity Risk customer service rep at 844-878-7529 or use the live-chat feature on the company’s website.
- Filing a claim: You can file a Velocity Risk home insurance claim online File A Claim | Velocity Risk, through the Velocity Risk mobile app, or by calling 844-878-2567.
- Canceling your policy: Canceling the policy is done by calling your local Velocity Risk agent. The number of the agent will be on the declarations page of the policy or you can do a quick Google search.
Conclusion
Velocity Risk can be a good option for homeowners along the Gulf Coast of Florida and Texas. Velocity Risk is an especially good option for homeowners with a home that is between $750,000 and $3 million in value. There are very few coverage options available to homes of that value, especially in high-risk areas such as the areas that Velocity Risk serves.
Homeowners should be wary of the reviews of the company stating that the company cancelled the policy on them without warning or raised rates unexpectedly.
The claims process looks quite good with Velocity and their website lays out the claims process and frequently asked questions in a concise, clear manner. Another positive of the company is its financial strength. It is always good to see an A rating or higher from AM Best for a company. This should help homeowners rest easier knowing that their company has the ability to pay its financial obligations even in difficult situations.
The price for a home insurance policy is surprisingly decent, on par with a nationwide company. This is particularly encouraging to see due to the highly specialized nature of who Velocity insures and the lack of locations that they serve. Homeowners should be certain to read through and understand their policy, especially when it comes to wind and hail coverage.
Overall, Velocity Risk is a company worth considering for homeowners that fall into their highly specialized requirements. There probably aren’t many other options available for homeowners that fit those categories, but it is always good to shop around and find whatever you can.
