Shopping for insurance isn't just about finding the cheapest price on Florida homeowners insurance – you want to find the best insurance company, one you can trust with your home. This FedNat review will look at consumer data – from customer reviews to NAIC complaint scores – to shed some light on its strengths and weaknesses.
FedNat Home Insurance is a Florida home insurance company founded in 1992, and currently has about 4 percent of the market share. The company has an A rating from Demotech and offers homeowners insurance, condo insurance, flood insurance, and umbrella insurance. Let's see what their customers have to say.
Despite being in business for more than 25 years, FedNat only has few online reviews. According to the 15 reviews on Clearsurance, 33 percent rated them excellent, 13 percent rated them good, and 53 percent rated them poor. Most of these reviews cite claims directly, which suggests a polarizing experience in the way claims are handled.
Negative reviews mention adjusters who don’t accurately assess the damage. One in particular referred to a Hurricane Irma claim where the private adjuster noted the extent of the damage but FedNat ultimately denied the claim.
By contrast, we have more than 734 customer reviews on Trustpilot because we're eager to get feedback from our clients. We make a point to respond to reviews, particularly negative ones, to course correct as best as we can. While we can’t make everyone happy in every situation, we go above and beyond to try.
Our customer reviews are an overwhelming positive. On average, our customers rate us 4.8 out of 5; FedNat's average at 2.6.
Bottom line: Learning from feedback, good and bad, can help an insurance company continually improve.
The National Association of Insurance Commissioners (NAIC) maintains a Complaint Index that considers whether or not the number of complaints made about an insurance company is in line with expectations based on its market share. Every insurance carrier has a different market share and geographic presence, which can often skew reviews in favor of larger companies. This system helps compare apples to apples.
The Complaint Index's median average is 1, meaning a company with a score of 1 is in line with expectations for its size. When a company's is closer to zero, it has a lower-than-expected ratio for its size. A score of 2 means the company has twice as many complaints as you'd expect for its size.
While FedNat doesn’t have a wide range of third-party reviews, it does have a major presence of complaints with the NAIC. It holds more than 5.6 times the median average, well above the desired number of 1 or less.
Kin's complaint score is 0.
Homeowners insurance has a reputation for being expensive in Florida. In fact, according to NAIC data, it is one of the top five most expensive states for homeowners insurance with average home insurance costs at $1,951.
Though you might think you have to cut corners on your coverage to save on your policy, you don't. With an average yearly premiums of $1,651 for newly built home valued at $300,000, Kin's prices are far below other Florida carriers. Compare that to FedNat's average annual cost of $2,445. We end up being 38 percent cheaper without sacrificing coverage.
Average Annual Premium Comparison
|Value of Home||Kin Insurance||FedNat Insurance|
|$300k New Build||$1,651||$2,445|
Of course, average give you a sense of what you might pay for home insurance, but the only way to know for sure is to get a quote. Your costs may vary depending on where you live, what discounts you qualify for, your home's characteristics, and more.
Claims are when a company really gets to prove the value of the insurance you've been paying for all this time. So it's telling when a company has a fair number of reviews that cite a disappointing claims experience.
The FedNat mission to provide “fair, efficient, and personalized claims” seems to miss the mark with more than half of its reviewers. This suggests that the claims process is highly contingent on adjusters and claims reps who may not be trained to do things in the same fashion. Personalized becomes subjective and therefore inconsistent.
That's why we work hard to create internal standards that every claims adjuster follows. We complement personalized service with technology (think drones, aerial footage, and satellite imagery) to streamline claims processing, particularly after a natural disaster. Our Managed Repair Network pairs policyholders with licensed, insured, and local contractors to get the work done professionally and fast. We also get in touch with our customers after a storm, regardless of whether or not they filed a claim. Bottom line: our policyholders are worth the extra effort.
Curious about how Kin can improve the homeowners insurance experience for you? Get a quote today.
Don't settle for second best. Get a quote from Kin today!