What happens if my Home Insurance carrier goes bankrupt? Admitted vs non-admitted Insurance carriers

As Home Insurance rates have skyrocketed on the Gulf Coast, we have seen a surge in non-admitted carriers being written due to a large portion of admitted carriers non renewing and pulling out of coastal counties completely. We thought it would be important to distinguish between the two types, so you can ask your agent which type you have when considering your insurance options.

An admitted Insurance carrier meets regulations that are set by the Department of Insurance or insurance commissioner in that state. The state verifies that the company’s policies, procedures, rates and requirements are all in compliance with state insurance laws and regulations before they are allowed to conduct business and sell insurance in your state. If an admitted carrier becomes financially insolvent, then the state will step in to make payments on claims if necessary.

A non-admitted insurance carrier does NOT meet the regulations set by the Department of Insurance or insurance commissioner in that state. Non-admitted carriers are sometimes referred to as Excess and Surplus lines or simply E&S. If a non-admitted carrier becomes financially insolvent there is no guarantee that claims will be paid. These insurers specialize in offering insurance to the high-risk market, and although not admitted, most states require that they be on the states approved list. We recommend that non-admitted carriers be used only in markets where admitted carriers are not available.