At Velocity Risk Underwriters, LLC, we know the importance of having confidence in the company that insures your most important asset: your home. Too often, homeowners think all carriers and coverage are the same and choose their homeowner insurance based on price.
Our goal is to provide best-in-class coverage and claims service to coastal markets at a competitive price. This means that our customers can feel confident in the face of catastrophe.
- Confident that the policy provides comprehensive coverage
- Confident in high-quality customer service in the event of a claim
- Confident regarding adequate financial assets to pay claims, no matter how harsh the weather hits.
Having adequate financial assets is critically important in the insurance industry, but each year numerous insurance companies must be taken over by the state insurance guarantee where it’s domiciled due to inadequate funds in reserve to pay many claims, especially in the event of a hurricane or other catastrophe.
If you bought a policy from a company that goes into liquidation, this means that your claim may be paid by the state rather than your insurance company. The good news is that you should receive funds to repair damage to your home; the bad news is that the funds may not be enough to make you financially whole the way you expect. And you may have to wait weeks or even months to receive any payment at all.
For example, if you have a $500,000 policy on your home with $250,000 in contents and various other coverages, in many states, the most you’ll be able to collect is $300,000, regardless of the extent of your claim.
Since inception of the property and casualty guaranty fund system began in the 1960s, there have been about 600 insurer insolvencies, and the system has paid out more than $24 billion.
What you can do now to protect yourself is research your insurance company. While there are several companies that rate insurers, A.M. Best, the largest credit rating agency in the world specializing in the insurance industry. If your insurer is rated “A” or better, they have the financial strength to handle your claim as well as every other claim they are faced with, regardless of the degree of devastation.
Velocity Risk Underwriters, LLC, is one of those highly rated insurers. We are rated “A” Excellent by A.M. Best, which is why our tagline is “Confidence in the face of Catastrophe.”