Admitted vs. Surplus Lines Insurance: What Every Policyholder Should Know

At our office, we are often asked about insurance companies that agents recommend. Clients want to know if we’ve dealt with those carriers before, whether they are reputable, and which might be the better choice.

The first step is understanding the difference between admitted insurance companies and surplus lines insurance companies.

• Admitted Companies are licensed and regulated by the Florida Department of Financial Services (DFS). If issues arise, you can turn to the DFS for help and oversight.
• Surplus Lines Companies are not regulated in the same way. They operate outside of many state protections, leaving policyholders with far fewer rights. DFS cannot help.

What’s even more concerning is that some surplus lines companies now include restrictions that prevent policyholders from hiring a public adjuster to assist with a claim. This means the insurance company has its own adjuster working for them, but you’re denied the ability to hire your own advocate. That’s not just unfair—it’s dangerous.

Surplus lines agents should show they have tried to place a client with an admitted carrier first, however, that’s not always what happens. I experienced it firsthand when I was shopping for my parents’ home insurance.

The only quote provided was from a surplus lines company—even though I specifically asked otherwise. When I pushed back, we were able to secure a quote from a reputable and admitted  carrier. That admitted policy not only offered stronger protections, but it was also more affordable than the surplus lines option.

What You Need to Do:
1.     Ask Questions. Always ask your agent whether the carrier they are placing you with is admitted or surplus lines.
2.     Request Alternatives. Insist on admitted carrier quotes before agreeing to surplus lines.
3.     Read the Fine Print. Watch for restrictions that limit your ability to use a public adjuster or seek outside help.
4.     Ask About Coverage Limits. For both admitted and surplus lines policies, watch for hidden limits within the policy. For example, $10k water damage limits, Matching of Undamaged Property limits, roof coverage endorsements, etc.  

Your insurance should protect you, not make things harder when you need to file a claim. Make sure you know exactly what you are purchasing before you sign.

If you have any questions or concerns about your insurance policy, or you have an underpaid or delayed property damage claim, we are here to help.  Please contact us here or call (561) 288-6434.