We have been servicing Florida, as well as, Georgia, North Carolina, South Carolina, Indiana, Illinois, Texas, Kansas, Missouri, Arkansas, Mississippi, Alabama, Tennessee, and Kentucky. We have been serving the public since 1997 and have changed the way that people pay for their insurance premiums. Businesses and people should be able to keep there money in their pocket, rather than give it to insurance companies in the way of large deposits. Our products are customized to give the insurance company what they have earned.

We have taken a lot of time to make this a site that contains information that exceeds the needs for insurance. At Florida Direct Insurance Agency, we specialize in putting people back to work. Our products are geared to put a business owner or officer back to working on what they enjoyed to begin with. Our products range from Pay as You Go Workers Compensation and General Liability to Property and Health Insurance.

Please feel free to contact us if you should have any questions or problems at 1-800-763-6118. Regardless of the question or need, we are here to serve you. We would like to have the opportunity to quote any type of insurance you might have. Our quote forms are short and to the point. All information is confidential. If you would prefer to talk to person, call us at 1-800-763-6118.

State of Florida Trying to Drop "Reinsurance" offered to Insurers to Contain Costs to Residents

State of Florida is trying to back out of "Backstop" reinsurance for Florida Companies that it brought in after the 05-06 hurricane season. According to a bill being presented by Marco Rubio to the State, would effectively raise homeowners premiums 3 to 4 %. It is felt by Rubio that the State should lower its' footprint in the reinsurance market by reducing its' size. This would make Florida domestic companies search for reinsurance in the open markets at a higher cost.

The Senate and Banking Committee is expected to lobby to domestic carriers in an effort to keep the homeowners rates lower. The insurance industry is expected to raise rates immediately to compensate from the long terms effects of this change in policy.

When a hurricane strikes again, there won't be a State "Backstop" to contain the costs to the citizens of Florida. It will cost the insurance companies more for the additional layers of reinsurance that the domestic carriers in Florida must carry. These costs will be passed down to policy- holders.

As more hurricanes strike Florida, the costs of the reinsurance will rise over time. The reason these costs are so much greater now than 10 or 15 years ago has to do with the expediential growth in our coastal areas.

 Prior to Hurricane Andrew, if you were to build a home in the regions of our State that were on the Gulf or Atlantic, there was no marketplace for your home or you would have to seek out coverage from "Offshore Carriers", such as Lloyds of London and others, that would charge a premium that was a sizeable deterrent to most to build there. This kept the growth in areas that where less desirable than the coast to build and preserved a buffer between homes and some of the elements.

After Hurricane Andrew, the State of Florida passed legislation to establish a market of last resort for people who owned homes, regardless of residency, who could not find coverage elsewhere in the "admitted" market.

 In the late 90's and into the early millennium, the State-Run Insurer of last resort (Citizens) became a viable marketplace with premiums that were competitive. The "Cost of Insurance" was raised dramatically with the hurricane seasons in 04 and 05. The reinsurance "Backstop" was legislated to control the costs, but due to market strategies by private insurers, is unable to continue. 

This remedy, a result of political influence, has been steered from its' onset by principals other than statistical. The costs for a home in these coastal regions are more valuable than those in non-coast areas. The value of the home is greatly higher, thus creating more potential for loss in one area. This takes more of the money that is reserved by the insurance company to cover that loss and in turn, makes the amount of the total loss ten-fold.

If the State-Run company losses money, then all companies that are "admitted" in Florida must share in that loss. With all due consideration, a large percentage of those homes that are insured in coastal areas, with the State Insurer, are not owned by resident's of the State of Florida. When these losses occur, Florida residents are weighted down by the damage sustained to these type of examples and so are their "Cost for Insurance".