In a perfect world, everyone’s property is pristine, well updated and without any liabilities.
Unfortunately, this is not the case. For various reasons. But first, how about we dive into the difference between standard carriers and surplus carriers (non-standard).
Standard carriers are “admitted” to offer a certain product under specified conditions. These carriers are subject to strict guidelines regarding the type of risks they can write, policy language they can use, and rates they can charge.
A surplus carrier does not have to undergo the scrutiny as a standard carrier. They still have to follow various state laws but ones that are less restrictive. This allows them to be a bit more flexible when it comes to products they can offer.
Who would need insurance through a surplus carrier?
Someone who has a bad claims history. A standard carrier would want to see that the claims history get cleaned up (It can take 3-5 years for claims to fall off)
Perhaps the house you just purchased is a fixer-upper and is unlivable. A home under construction or even high risk a liability is something a standard carrier is not going to want to take on
Is the home vacant? Vacancy leaves a risk of theft and vandalism. This is something a standard carrier is going to avoid
Have you been without insurance for a while? A standard carrier will want you to re-establish your insurance history before obtaining insurance through them
While being with a surplus carrier is not ideal, sometimes it is the only option we have to moving you towards a standard carrier. The main point here, is that we have options to fit everyone. No one needs to ever go without insurance. If you have questions or want to learn more about the difference between these two markets, click the link below. We'd love to chat about this with you!