Home Insurance Buyers Guide, LLC

Magnolia Insurance Company has just been placed under administrative supervision by the State of Florida.

This is not good news for the 100,000 plus Magnolia Insurance Company policyholders.  Magnolia Insurance Company is a take out Florida home insurance company that only recently started up in 2008.  In just two years it was permitted to assume thousands of South Florida home insurance policies that used to be in Citizens Property Insurance Corporation.

 Why exactly is Magnolia Insurance Company struggling financially?  While we may never know the complete answer, Magnolia Insurance Company has plenty in common with many other Florida home insurance companies who have lost money during the last 12 months in this tough economy.  Reasons for these losses can include inadequate Florida home insurance rates, poor returns on invested capital during a period of low interest rates, and rising claim levels – something that is particularly hard to understand in non-hurricane years.

 Whatever the reason for the situation at Magnolia Insurance Company things do not appear to be going well there.  Earlier this month the company lost its Demotech financial rating which makes them officially an unrated Florida homeowners insurance company – this is not exactly something you want your mortgage company to find out about.

Now Magnolia Insurance Company’s president has resigned and it is going to be operated by the State of Florida for the foreseeable future.  State officials have referred to Magnolia Insurance Company as “financially troubled” and stated that “it doesn’t have enough money”.

 Where exactly does this leave you as a Magnolia Insurance Policyholder?  Well it would be good for all of us in the State of Florida if the company was able to work through its problems and continue to insure its 100,000 policyholders.  But do you want to wait around to find out if they are going to make it?  What will your chances be of having your claim paid if we have a Florida hurricane again this year?  What if Magnolia Insurance Company has to be liquidated right before the start of hurricane season?

Don’t wait around to find out the ending of the Magnolia Insurance Company story.  Take action right now by subscribing to the Home Insurance Buyers Guide.  The buyers guide helps you find, screen, and contact Florida home insurance companies still writing new business in your county – companies that could save you thousands and keep you out of Citizens Property Insurance Corporation.

Take control of your own destiny and use the buyers guide to find affordable private Florida homeowners insurance today.