Here at Coastal AL Ins, we have strived since our inception nearly seven long years ago to do the right thing for our clients, friends, neighbors, and community. What does the "right thing" mean? It means we answer the phones promptly, return emails, create a position solely for claims assistance, forward phones on nights and weekends and early mornings, invest in our community, and lastly, make sure that our carriers are financially sound. This short blog is about the last part, and our responsibility to our clients.
For YEARS, Frontline Insurance has bought the market. What does "bought the market" mean? It means they were offering coverage WAY below what other carriers were writing. I reviewed their financials periodically, and decided that something wasn't right. We would lose potential clients, and existing clients, to Frontline, due to price. It was a difficult yet persistent conversation I had with agents, clients, and potential clients alike. Despite the loss of business, our agency would not represent Frontline.
However, on Jan 1, 2023, Frontline lost their A Rating by Demotech and now has a BBB+ Rating with KBRA, another financial rating institution. However, mortgages backed by Freddie Mac will no longer be able to be secured via Frontline Insurance, and their insurance will either be voluntarily placed elsewhere by the homeowner, or force-placed by the mortgage company. The financial downgrade should frighten any customer of Frontline. It's truly a historic moment, and one that was frankly long overdue to anybody who had been paying attention to the reports and financials of this company.
If you have any questions, please do not hesitate to contact our office or agents about the multitude of solutions we have.
Reginald C Pulliam
Coastal Alabama Insurance