UPDATED: Nov 30, 2018
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About Federated National
FedNat was founded in Florida in 1992 and focuses on home insurance solutions for a variety of different types of residence, including those that are difficult to insure. The insurance company operates as a subsidiary of FedNat Holding Company, which also owns another Florida property insurance company, Monarch National.
In addition to their Florida operations, FedNat offers home insurance in Alabama, Louisiana, South Carolina, and Texas. Although they previously carried commercial lines insurance as well, since our last review of this company they appear to have dropped that line and now focus solely on home insurance products.
Interestingly, they do name other types of coverage in various places throughout the website – their quote request form, for instance, lists options including auto and boat insurance. These products are not found in the product list, however. FedNat does provide third party administration for some other companies according to the “about” section of their website, so it is possible those products are underwritten elsewhere.
Policies are sold through local independent agents in the areas they serve.
The Federated National website is very limited in terms of product information. They list all of the products that are available, but they offer no details on the policies including coverage options or endorsements.
The home insurance products listed on the website are:
- High Value Homeowners
- Flood Insurance
Also available from FedNat is personal umbrella insurance, which increases the liability coverage above and beyond what is included in a home policy.
Although there is a rate quote system on the Federated National website, we chose to use the Florida Office of Insurance Regulation’s rate comparison tool to provide rate information. This tool allows us to see rates for a sample home with a $300,000 value built in 2005. The sample uses a $500 deductible, with a 2% hurricane deductible.
This quoting system instantly provides us with FedNat rates for the sample home across 67 counties, which is more useful for comparison than running a direct rate quote on the site for only one particular zip code.
The returned rates ranged from $1,186 a year for Hernando County to $5,117 a year for Dade County. This wide range is not unusual for a Florida homeowners insurance company and generally reflects the much higher risk present in some counties that are vulnerable to hurricanes and other storm damage.
We then looked at the comparison by company for Dade county; FedNat’s rate for the same sample came in at number 10 out of 27 companies, with a rate a little below average.
FedNat claims can be reported 24/7 either online or over the phone.
The company has a Preferred Contractor search function that allows customers to find a contractor approved by the company; customers can also choose their own repair company or contractor.
The claims section of the website is far more comprehensive than any other part; it includes a solid FAQ section that details what to expect from the claims process as well as advice for hurricane season and what to do in an emergency.
The site also offers access to a claims advocate to help customer that are have difficulty with the claims process, and a claims satisfaction survey. Both of these options indicate that customer satisfaction with claims is a priority for this company.
Ratings and Consumer Reviews
FedNat has an A+ rating with the Better Business Bureau (BBB), and a total of 116 complaints on file in the past three years. The 76 reviews left by customers are mixed, for an overall three-star rating. A large number of the reviews are highly positive and cite excellent claims service after hurricane damage. Many are quite recent and focus on Hurricane Michael. There are also negative reviews citing an opposite experience.
The most recent complaint data from the Florida Office of Insurance Regulation is for the second quarter of 2018, and the complaint ratio is 1:1574, or one complaint for every 1,574 policies in force. The office places them on the lower side when compared to other companies of a similar size, with some companies considerably higher in terms of complaint volume.
FedNat has 16 reviews on Yelp resulting in an overall 1.5-star rating. The reviews are mainly regarding a negative claims experience.
Overall, FedNat does not have a high complaint volume and has plenty of positive reviews to balance out some of the negative.
The Bottom Line
Federated National may be worth considering for your home insurance, particularly if you have difficulty obtaining coverage. The lack of policy information makes it difficult to draw a conclusion on value, but they do appear to have plenty of happy customers which makes them worth a closer look.
For a list of companies that we recommend, visit our Best Insurance Companies page.