Insurance is a complicated subject with many different facets that make it easy to get confused when you’re shopping around for a homeowners policy. There are numerous phrases that people ask for clarification on, but one of the most regularly questioned topics is one that concerns admitted and non-admitted insurance providers. The difference between the two often influences how a carrier is chosen, so it’s important to know what each really means. NorthEast Insurance Services is proud to offer residents the highest quality products and services available in New York, New Jersey, and Pennsylvania. NorthEast has a vested interest in each of its clients and works thoroughly to ensure they have all the information they need to make an informed decision about their insurance coverage.
The following explanation on admitted and non-admitted insurance providers will help eliminate any confusion you may have on the matter so you can select your carrier wisely.
Admitted Insurance Provider
An admitted insurance provider is one that has been recognized as satisfying their state regulations and is, therefore, designated as a licensed carrier. The state must approve all of the provider’s rates, and it will assume responsibility for paying an insurer’s claims if the provider is not financially able to do so. They offer standard underwriting guidelines, coverage amounts and endorsements. Travelers, MetLife and Plymouth Rock are all admitted insurers.
Non-Admitted Insurance Provider
Non-admitted insurance providers do not completely follow the state’s regulations, which gives them the ability to be more flexible with their policy pricing. The biggest difference is that the state will not step in to help resolve claims if a provider isn’t able to financially cover them. A non-admitted carrier will accept risks that standard insurers will not, such as a homeowner with several claims, a lapse in coverage, or a property that does not fit a standard insurance carriers guidelines. Lloyds of London and Scotsdale are high rated non-admitted carriers.
Do I Have a Choice?
It may seem less risky to get coverage from an admitted company, but often, there may not be an option other than to be placed with a non-admitted carrier. Most likely these policies will be more costly. For property owners – you don’t want to put yourself in a position where a non-admitted carrier will be your only choice. Keep your property in good condition and properly maintained to prevent claims situations. Don’t ever let you policy lapse – make payments on time so you will never canceled for non-payment.
When it comes down to choosing the right insurance provider, there are several considerations that should factor into your final decision. If you still have questions please contact NorthEast Insurance Services at (732) 972-1771 to speak with a knowledgeable insurance agent. You can also visit their website for a full list of services.