Vermont's Home Owners Catch a Lucky Break!
By Gavin Magor | September 9, 2011
Residents of Vermont should be able to count on their homeowners insurance to pay claims for damage caused by Hurricane Irene.
Why? Because the state’s homeowners insurers have the ability to pay.
Despite the devastation left by the hurricane as it became a tropical storm and drowned the green mountain state, there is some positive news for the state’s recovery ...
Weiss Ratings, the nation’s leading independent provider of financial strength ratings for the insurance industry, confirmed that all 36 homeowner insurers in Vermont received a Strong or Fair rating.
No one insurer dominates the Vermont homeowners’ insurance market. So while Hurricane Irene caused widespread damage and the costs of repairs will be high, insurance claims will be spread across a large number of insurers.
Vermont residents and insurers will both benefit. Since no one insurer will bear the brunt of the storm’s damage, it’s very possible insurers may be able to absorb claims without exceeding their anticipated expenses for the year.
The twelve largest issuers of homeowners policies in Vermont account for 60 percent of the coverage in the state. The majority of the remaining policies are issued by 24 insurers.
| Company |
Domicile State |
Weiss Rating |
Homeowners Premiums Written 2010 $millions |
VT market-share 2010 |
Capital and Surplus 3/31/11 $millions |
| CO-OPERATIVE INS COMPANIES |
VT |
B- |
17.4 |
10.51 |
51.9 |
| STATE FARM FIRE & CAS CO |
IL |
B |
12.9 |
7.81 |
9,242.0 |
| CONCORD GENERAL MUTUAL INS CO |
NH |
B- |
12.3 |
7.44 |
180.1 |
| VERMONT MUTUAL INS CO |
VT |
C+ |
12.3 |
7.44 |
229.9 |
| NORTHERN SECURITY INS CO INC |
VT |
C |
7.1 |
4.31 |
7.6 |
| NEW ENGLAND GUARANTY INS CO INC |
VT |
C+ |
6.3 |
3.79 |
33.7 |
| UNION MUTUAL FIRE INS CO |
VT |
B- |
6.1 |
3.69 |
72.0 |
| PEERLESS INS CO |
MA |
C+ |
5.9 |
3.56 |
1,864.6 |
| LIBERTY MUTUAL FIRE INS CO |
MA |
B- |
5.6 |
3.40 |
1,198.3 |
| NATIONWIDE MUTUAL FIRE INS CO |
OH |
B+ |
4.8 |
2.92 |
2,283.1 |
| MMG INS CO |
ME |
C+ |
4.5 |
2.70 |
68.3 |
| ALLSTATE INS CO |
IL |
B+ |
4.1 |
2.51 |
15,855.9 |
And because five of the most active insurers are headquartered in Vermont, they have strong incentive to maintain good relations with their policyholders over the long term. So while some of those companies may be smaller than their competition, they are not likely to increase premiums for customers affected by Irene. Instead, these companies will probably take a longer-term view, hoping to build customer loyalty. Ultimately this will benefit both the insurers and their insured customers’ recovery from Irene’s damage.
Find out about your homeowners insurance company – check Weiss Ratings. Just register, it’s free!
Gavin Magor, senior financial analyst at Weiss Ratings, has more than 25 years of international experience in credit-risk management, insurance, commercial lending and analysis. He leads the firm’s insurance ratings division and developed the methodology for Weiss’ Sovereign Debt Ratings.