People's Trust: A Fine Replacement for State Farm

This article in the Miami Herald (which has provided some excellent coverage of the continuing insurance soap opera in Florida) caught my eye. It seems that People's Trust Insurance Company - one of those young, enthusiastic homeowners insurance companies that are going to save the state from evil State Farm - has been pushing the envelope a bit with its sales and pricing practices. The company has been offering too-good-to-be-true prices (sometimes 50% lower than the competition) to potential customers, some of whom are paying thousands of dollars per year in premiums.

There's just one (or two or ten) catch(es). The unlicensed(!) sales agents leave out the little details about the 10% wind deductible (which is double the average deductible) or the bare-bones contents coverage. Even if the policy was a good deal, I would still be a little concerned that the company would have trouble paying claims following even a moderate hurricane.

Remember, in the long run, you get what you pay for with insurance.