The bottom line
UPDATE: As of March 2023, Federated National (FedNat) Insurance is no longer in business and stopped selling home insurance in the seven states it used to write policies in: Alabama, Florida, Georgia, Louisiana, Mississippi, South Carolina, and Texas.
FedNat was deemed insolvent last fall and placed into liquidation on September 27, 2022. Three months later, its holding company filed for Chapter 11 bankruptcy, listing $33.8 million of assets and $171 million of debts in its bankruptcy petition.
The increase in devastating weather events that hit the Southeast in recent years combined with high reinsurance costs and costly claims litigation that’s plagued the Florida insurance market all led to FedNat’s demise.
What does this mean if I used to have FedNat home insurance?
Before its liquidation, FedNat entered into agreements with several home insurance companies to offer replacement coverage to its policyholders.
In Florida, policyholders had the option to transfer their coverage to Monarch Insurance. And in Alabama, Mississippi, South Carolina, Louisiana, and Texas, policyholders could transfer their coverage to SURE Insurance (a subsidiary of SageSure).
There aren’t any insurance companies listed for Georgia policyholders, which means their policies were likely canceled without the choice of moving coverage to a different company.
What if I purchased NFIP flood insurance through FedNat?
Your NFIP flood insurance policy is still active, though you’ll need to reach out to National Flood Services going forward for any questions regarding claims or your policy.
What happens to FedNat claims that are still open or if I need to file a new claim?
FedNet claims are still being processed, even though the company has been liquidated. And you have until September 27, 2023 to file a new home insurance claim with FedNat.
Here’s where to turn to for help based on the state your FedNat home insurance policy was purchased in:
Florida
If your policy was taken over by Monarch National, you can reach out to their customer service team for updates on your claim or to file a new claim by calling 800-293-2532 or emailing uwinfo@monarchnationa.com.
For all other Florida policyholders, the Florida Insurance Guaranty Association is handling claims for FedNat policies. However, there might be a delay in claims processing as they gather claim files and data from FedNat. In the meantime, you can continue to reach out to FedNat to check your status of an existing claim or to file a new one by calling 800-293-2532.
Georgia
FedNat policyholders in Georgia can contact the company directly by calling 800-293-2532 for questions about existing claims or to file a new claim.
Alabama, Louisiana, Mississippi, South Carolina, and Texas
For claims filed before July 1, 2022, your state’s Guaranty Association is handling claims for FedNat policies. However, like with Florida, there might be a delay in processing time as they gather files and data from FedNat. In the meantime, you can continue to reach out to FedNat to check your status of an existing claim by calling 800-293-2532.
If your policy was taken over by SURE Insurance, you can check the status of claims filed after July 1, 2022 or file a new claim by calling SURE's customer service team at 888-346-6907.
Have more questions about FedNat? Check out these frequently asked questions about FedNat provided by the Florida Department of Financial Services.
How much does FedNat home insurance cost?
The average cost of home insurance with FedNat Insurance is $2,250 per year for a policy with $300,000 in dwelling coverage. This is 17% more expensive than the national average.
Here’s the average yearly cost of FedNat Insurance home insurance for five different levels of dwelling coverage:
Dwelling coverage limit | Average annual cost |
|---|
$100,000 | $818 |
$200,000 | $1,526 |
$300,000 | $2,250 |
$400,000 | $2,977 |
$500,000 | $3,758 |
Rates are based on our analysis of 2022 sample home insurance quotes from across the country provided by Quadrant Information Services. Actual rates will vary based on location, policy limits, coverages, claims history, and other factors.
What discounts does FedNat Insurance offer?
Most insurers offer ways to help you save on the cost of home insurance. FedNat only mentions one discount that you'll get for signing up for a paperless policy. Reach out to an agent to find out if you qualify for other home insurance discounts.
FedNat home insurance state availability
FedNat used to offer home insurance in seven states: Alabama, Florida, Georgia, Louisiana, Mississippi, South Carolina, and Texas.
