What Happens if Your Carrier Leaves the Market?
The insurance market is constantly evolving. Occasionally, a traditional “admitted” carrier (one licensed by the state) may decide to stop writing new business or exit a specific geographic area due to increased catastrophe risk or regulatory shifts. While a “non-renewal” notice can be stressful, it doesn’t mean your property is uninsurable. It often means your “risk story” has moved into the Surplus & Excess (E&S) Lines market.
Understanding the E&S Market: Your Essential Safety Valve
Surplus lines insurers are highly specialized companies that cover risks that traditional carriers won’t touch. These are often unique properties, high-value homes in coastal areas, or businesses with specific liability needs.
- Flexibility in Coverage: Unlike admitted carriers, E&S insurers have more freedom to customize policy forms and rates. This flexibility allows them to provide coverage for risks that don’t fit into the “standard” box.
- The “Diligent Search” Requirement: Before we can place your coverage in the E&S market, we must perform a “diligent search” to prove that coverage is unavailable through traditional admitted carriers. This ensures you always get the most competitive standard option first.
- Financial Strength: Most E&S carriers are backed by global insurance giants and maintain high financial strength ratings (such as A.M. Best “A” ratings or higher). They are built to handle large-scale, complex losses.
What to Do if You Receive a Non-Renewal Notice
If your current carrier is leaving the market, caring makes the difference in how we handle the transition. We don’t just wait for the expiration date; we go to work immediately:
- Immediate Re-Shopping: We utilize our access to dozens of specialty and E&S carriers to find a new home for your policy.
- Evaluating the E&S Option: We’ll walk you through the differences, such as the Surplus Lines Tax (a state-mandated fee) and the lack of state guaranty fund protection (replaced by the carrier’s own massive reserves).
- Proactive Risk Mitigation: Sometimes, making small improvements, like installing a leak detection system or upgrading an electrical panel, can help move your property back into the standard market in the future.
Navigate the Market with Experts: If you’ve received a notice from your carrier or are worried about market stability, contact Parkway Insurance Group today by sending us an email at info@parkwayinsurancegroup.com or calling us at +1 281 558 1991. We have the expertise and the carrier relationships to ensure you never face a gap in protection.
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