Insurance Companies Innovate with New Products in Florida’s Changing Market

Fernandina Beach, Florida – Insurance Companies Innovate Amid a Warming Market

In a notable development that signals the evolving landscape of insurance in Florida, two local companies are expanding their offerings amidst a changing environment. Amelia Underwriters, based in Fernandina Beach, and Security First Insurance Co., headquartered in Ormond Beach, are both enhancing their product lines as they adapt to the challenges posed by a warmer climate and a burgeoning housing market.

Who is Involved?

Amelia Underwriters is a wholesale and surplus lines broker that has recently broadened its range of product offerings. On the other hand, Security First Insurance Co. is making strides to provide innovative insurance solutions targeted specifically at new homeowners.

What Are They Offering?

Amelia Underwriters, partnering with the Florida Association of Insurance Agents’ Independent Marketing Solutions, now provides a wider variety of insurance products which include commercial property, general liability, trucking, homeowners, and even canine liability coverage. The company has recently begun offering artisan contractors’ general liability insurance in Florida through Cimarron Insurance.

Meanwhile, Security First Insurance Co. announced the launch of an HO-5 turnkey program designed for new homebuyers. This program, which will be managed by Embark MGA, provides comprehensive coverage that can be included in the final cost at closing. An HO-5 policy typically offers broader coverage than standard homeowner policies (HO-3) and includes provisions for the replacement value of the home and its contents.

Where Are These Changes Happening?

Both companies are operating within the state of Florida, a region facing increased risks due to climate change and natural disasters. The introduction of these new products comes at a time when many are looking for reliable insurance solutions in a fluctuating market.

When Are These Programs Being Rolled Out?

Security First filed its new program with the Florida Office of Insurance Regulation in October, although it faced delays in approval before planning to refile soon. The HO-5 program is expected to provide valuable options for new homeowners seeking better coverage for their properties.

Why Is This Significant?

The expansion of these insurance products indicates a response to evolving market conditions. As noted by Scott Johnson, a Florida insurance consultant, these types of policies often come with higher premiums due to their extensive coverage, but with new constructions presenting a lower risk, premiums could be 20% to 30% lower compared to traditional HO-3 policies. Melissa Burt DeVriese, President of Security First, emphasized that newer homes typically have better building codes and fewer losses, allowing for more predictable risk.

Moreover, despite challenges facing Florida’s housing market, including rising costs and potential labor shortages, projections suggest that the state will continue to see new homes being built. The Florida Economic Estimating Conference anticipates more than 111,000 private housing starts by 2025, albeit at a slower pace compared to previous years.

In Conclusion

As Florida’s insurance market adapts to changing risks and regulatory environments, the initiatives taken by Amelia Underwriters and Security First Insurance Co. reflect a broader trend of innovation and responsiveness to consumer needs. By introducing compelling insurance products that cater specifically to new construction and property ownership, these companies are positioning themselves to meet the demands of an evolving market, all while providing critical coverage to Florida’s homeowners.