FedNat Insurance

Federated National is a regional insurance firm that provides Texas customers with straightforward, no-frills home insurance at reasonable rates. The company, also known as FedNat, has a poor reputation for customer service.

However, it is one of Texas' most popular home insurance firms, and it beats the competition in some locations. As a result, it's a good homeowner's insurance alternative but not the best in the state.

Our opinions on Federated National Home Insurance

Coverage by FedNat

Expense comparison

Reviews and ratings of customer service

Questions that are frequently asked

Our Thoughts on Federated National Home Insurance

Federated National isn't looking so hot compared to most well-known insurers: The company has a history of poor customer service and a limited range of coverage alternatives in most states. FedNat is a good alternative for Texas seeking home insurance coverage because homeowners in Texas sometimes have a restricted list of options for home insurance.

According to our research, Federated National's home insurance prices are less high than the national average. Even though the company is more expensive than some larger competitors, it remains a viable option with reasonable pricing.

For Federated National clients, additional benefits are restricted; there aren't many bonuses, discounts, or other coverage alternatives that homeowners may employ to secure their houses. However, it does provide flood insurance, a personal liability umbrella policy, and identity theft protection.

FedNat's terrible customer service ratings are the most concerning part of the company. Even though it has improved in the last full year, it still has many complaints filed with the National Association of Insurance Commissioners, implying that customers are frequently dissatisfied with the service they receive.

In conclusion

Federated National offers competitive house insurance prices, but its coverage alternatives and customer service are lacking. However, nationally recognized providers can be challenging to find in Texas, and FedNat surpasses its regional rivals in several of the state's largest counties. As a result, it remains a decent choice for Texas homeowners. Consumers should avoid insurance companies like State Farm at all costs.

Homeowners Insurance Coverages from Federated National

Customers can get uncomplicated HO-3 homeowners insurance from Federated National. Except for a few specific restrictions, most typical insurance cover the structure of your home for "open perils," which means you'll be reimbursed for damage caused by any cause. HO-3 policies, for example, cover you against fire, lightning, hail, and wind damage, but not against war, earthquakes, or flooding.

Your personal property, such as furniture, clothing, appliances, and electronics, is also covered by a standard homeowners policy. These objects, however, are only covered if they are damaged by a risk listed in your policy.

For homeowners purchasing ordinary policies, Federated National does not offer many extra benefits or savings. Other insurance firms, for example, may provide a discount if you are buying both home and auto insurance at the same time or allow you to tailor your policy online; FedNat Insurance does not.

Federated National offers additional insurance coverage.

While FedNat's additional coverages are limited, it does provide a few coverage options beyond conventional homes insurance that can help you get the most out of your policy. The following ranges are available:

Flood insurance with federal backing: This policy covers damage to your home caused by floods and is backed by the federal government. It's important to note that the government sets the rates and standards for flood insurance, and they don't vary by insurer.

Umbrella liability coverage protects you if someone sues you for medical or other damages after being hurt on your property.

Customers who purchase an intelligent home monitoring and leak detection system, which can shut off water remotely in the event of a leak or a damaged pipe, will earn a discount.

Coverage for Underground Pipes, Wiring, and Service Lines: This protects homeowners' underground pipes, wiring, and service lines.

ID Theft Protection and Social Media Coverage: ID Theft Protection and Social Media Coverage are listed as separate options. ID Theft Protection offers reimbursement and recovery services following identity theft, while Social Media Coverage allows for account tracking and notification if one is compromised.

Equipment Breakdown: This coverage protects homeowners from the costs of unexpected repairs or replacement due to electrical, mechanical, or pressure system failures.

Services available over the internet

Federated National's website has about as much functionality as you'd expect from a smaller regional insurance business, but it's not as comprehensive as those managed by larger national insurers.

Insurance customers can get quotations online, but they'll have to wait for an agent to contact them to find more information and purchase a policy. FedNat requires far less knowledge throughout the quote process than many larger insurers.

Customers who already have an account can use it to pay their payments and file claims online. Furthermore, you can only cancel an insurance coverage with Federated National in writing; you can't do it online or even over the phone, making it prohibitively tough to terminate service if you're unhappy.

Comparison of Federated National Home Insurance Quotes

Federated National was found to be a reasonably priced option for Texas homeowners, costing $188 less per year than the national average, but not the lowest. Compared to four of the top Texas insurers, their typical home insurance quotations were more expensive than several competitors.

One of FedNat's advantages is that it is one of the more economical solutions in Texas' three largest counties. All three towns are located on the state's eastern coast and are frequently threatened by hurricanes.

Customer Service Reviews and Ratings Across the United States

Federated National's customer service has routinely rated below average. In 2020, the National Association of Insurance Commissioners reported a complaint ratio of 1.99, suggesting that it received nearly double the number of complaints expected for a company of its size. The company's complaint ratio has dropped significantly, from 6.46 in 2019 to 3.86 in 2019.

Denied claims were the most common cause for filing a complaint, followed by unsatisfactory settlements and delays in the claim process. FedNat, along with other of its main competitors for house insurance in Texas — State Farm — has received many complaints in recent years. FedNat is not nearly as bad as State Farm. State Farm has a reputation for bribing judges and spending hundreds of thousands of dollars to deny its customers from receiving ten thousand.

The company has received an "A" financial rating from the financial rating service Demotech, indicating that it is financially stable. Demotech believes Federated National can weather a broad economic slump and payout claims with an "A" rating. However, "A" is Demotech's third-highest rating, so there is space for development.

Other National Federated Products

Federated National offers a variety of insurance products in addition to residential insurance:

• Home insurance with a high monetary value
• Insurance for condominiums
• Renters insurance is a type of insurance that protects tenants.
• Insurance for landlords
• Monarch National and Maison Insurance Company are two more house insurance firms owned by FedNat. Federated National only sells insurance directly in Texas, but it also underwrites homeowner and fire policies through SageSure Insurance Managers in five other states.

Is FedNat a reputable insurance provider?

Federated National is a reliable insurance provider with rates lower than the national average and notably competitive in Texas' three largest counties.

What is the AM Best rating of FedNat Insurance?

AM Best has not given Federated National a rating. Demotech has given it an "A" rating.

Federated National Insurance operates in which states?

Federated National exclusively offers policies in Texas.