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People’s Trust Insurance Company Summary
People’s Trust Insurance was founded in 2007 in Boca Raton, Florida and later moved its headquarters to Deerfield Park, where it remains today. The company has grown quickly to hold over 135,000 policies, but ran into some difficulty when their growth was determined to be too rapid, which is further discussed below in this review.
People’s Trust markets itself as taking a different approach to homeowner’s insurance, using their own team of agents and customer service representatives rather than selling through independent agents. Their direct-sales approach is unusual in the Florida market and for insurance companies of this size in general.
The company offers quoting over the phone as well as online.
People’s Trust writes a very limited selection of products to insure homes, allowing the choice of package homeowner’s policies or a more basic and affordable option.
Currently, People’s Trust offers only three main policy types, one of which is actually provided through an outside company.
The main product offering from People’s Trust is their package homeowner’s policy (HO3), which covers most standard single-family dwellings. This policy includes coverage for the home itself as well as any other structures on the property including detached garages, sheds, and fences. Also covered is personal property owned by the insured, and liability is provided for injuries or negligence suits.
People’s Choice, like many insurance companies, has a number of exclusions. Notable among them is the Animal Liability exclusion as pointed out on their website, which states that there will be no coverage for animals with a history of biting, or that are considered vicious or exotic.
The Basic Choice policy from People’s Trust is a Dwelling Fire policy, meaning that it is not nearly as comprehensive as the HO3 and does not cover as many potential perils as does the homeowner’s. This makes it a cheaper alternative to the HO3, but at higher risk to the owner. This type of policy is commonly issued for rental properties.
People’s Trust sells flood insurance issued by First Community Insurance Company, a company authorized by the Federal Emergency Management Agency (FEMA) to sell flood insurance. People’s Trust does not handle claims or customer service for these policies.
People’s Trust promises lower premiums as a result of their direct-sales system. This basically means that you save money since they are not obligated to pay hefty commissions to third-party agents.
Lower overhead generally allows direct-sales companies to offer better rates than competitors who use agents with commissions; however, homeowner’s insurance rates can vary based on many factors, and agent commissions don’t always mean higher rates.
People’s Trust promises a simplified approach to claims service with their Rapid Response system. Homeowner’s are issued a card with a one-call number that is meant to start the claims process and get help on the way. While this is a good way to keep claims information on hand, it’s really not much different from any piece of paper with a claims phone number available.
People’s Trust also offers a Rapid Response Team available for 24/7 emergency repairs to deal with burst pipes and other sudden events. This is a contracting company affiliated with the insurance company that is hired to respond to claims and not part of the actual team at People’s Trust.
Claims can only be filed through the provided phone number, and there is no system for online filing at this time. People’s Trust provides a very clear explanation of their claims process on their website.
People’s Trust Insurance has an A+ rating with the Better Business Bureau, and has been accredited since 2014. There are 80 complaints listed against the company in the past three years, 19 of which have been closed in the past 12 months.
Although the BBB shows no government actions against People’s Trust, in the past three years, there is some trouble further back on their record. This Insurance Journal report shows that the company was fined $100,000 in 2009 for using unlicensed agents to sell its policies. The report also shows a number of other violations including using un-filed rates. The company was forced to rewrite affected policies or cancel them without penalties and provide refunds.
The Florida Office of Insurance Regulation records a total of 36 complaints against People’s Trust in the fourth quarter of 2016, which comes out to a ratio of 1:4058, or one complaint for every 4058 policies the company has in force. That’s a high ratio for a company of this size, and is especially concerning when added to the issues for which People’s Trust was fined in 2009.
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People’s Trust is a new insurance company whose fast growth may be a result of some inappropriate practices, although the company has been cleared since and has not had further problems.
Their direct-sales approach may mean lower rates for some customers. People having trouble finding an affordable rate elsewhere may want to consider People’s Trust, but low-risk homeowners are likely to find comparable rates elsewhere, regardless of the company they choose.
For a list of companies that we recommend, visit our Best Insurance Companies page.