Federated National Insurance review

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Federated National Insurance (FedNat) is only offered directly to residents of Florida. The company faces some challenges relating to coverage limits and customer complaints, but offers a robust portfolio of unique protections for individual homeowners and renters.

  • Date established: 1992
  • Insurance products offered: Homeowners Insurance, renters insurance, condo insurance and landlord insurance
  • AM Best financial strength rating: Not rated
  • NAIC complaint index: 4.37 (above the national baseline of 1.0)
  • Availability: FedNat directly writes its various insurance policies in Florida. FedNat also underwrites homeowners and dwelling fire insurance policies in Alabama, Louisiana, Mississippi, South Carolina and Texas through its partnership with SageSure Insurance Managers.
Pros Cons
Provides robust coverage solutions for homeowners, including high-value home insurance, flood insurance, and personal umbrella coverage. Not rated by A.M. Best.
Provides 24/7/365 phone and online claims reporting. Coverage not available nationwide.
Offers online quotes and agent referrals, bill payment, and claims reporting. Very poor NAIC Complaint Index, indicating considerable customer dissatisfaction.
Provides modest coverage limits for other structures, personal property and loss of use protections.

Federated National home insurance

With a wide array of home insurance policies available, FedNat may appeal to a good cross section of homeowners and renters who are looking for a one-stop-shop carrier to address their home protection needs. Supplemental coverage options, such as underground pipe protection, allow customers to tailor policies in ways that compete with the best home insurance companies.

Types of coverage

FedNat could provide a solution for individuals looking for a way to combine several forms of home protection coverage to address specific concerns. In addition to basic homeowners, condo and renters coverage, FedNat offers several additional types of coverage that stand out, including:

  • Service line coverage: This option expands standard homeowner protection to cover underground pipes, wiring and other forms of service lines on the insured property.
  • Social media coverage and ID theft protection: FedNat tracks the heightened risks that rapid changes in technology have added to all of our lives. Both these coverage types can help protect policyholders from the financial consequences that arise when social media accounts are compromised and identity theft occurs.
  • Personal umbrella liability coverage: This type of umbrella coverage is specifically designed for situations where a lawsuit for personal injury or other damages leads to expenses not covered by your home insurance’s liability limits.

Discounts

Like other insurance carriers, FedNat offers a number of discounts that may help save some money on premiums. These discounts may apply to different applicants for different reasons, depending on a number of factors such as having a claim-free record, home upgrades (new roof discount) and security system (central fire or burglar alarm discount). A couple of notable FedNat include:

  • Flo by Moen system: A homeowner may receive a discount if they purchase a Flo by Moen smart home monitoring and leak detection system. This sophisticated system is able to remotely turn off water if there is a damaged pipe leak.
  • Gated community: Customers in gated communities can often secure a discount based upon this added level of security.

Federated National ratings, reviews, customer satisfaction and complaints

FedNat is not rated by AM Best, but rates well with comparable rating services. FedNat has a financial stability rating of A (Exceptional) from Demotech, Inc.

Perhaps due to the fact that FedNat is only directly available in Florida, the company has not been rated for customer satisfaction in J.D. Power surveys. Unfortunately, FedNat has not fared particularly well with other customer satisfaction ratings. The National Association of Insurance Commissioners (NAIC) reports a Complaint Index rating of 4.37 for FedNat as of 2020, indicating that FedNat received  more than four times as many complaints as the national baseline. However, this is a significant improvement from 2018 and 2019, during which the company received a complaint index of over 20.

Reasons Federated National insurance is a good option

Federated National has existed for almost 30 years and has established itself as a good insurance company for many policyholders. FedNat offers a wide variety of home-related insurance policies and has developed a user-friendly website that provides a useful means of obtaining quotes and submitting claims.

As mentioned, FedNat faces some challenges and limitations, such as only having direct availability in the state of Florida. However, the company does underwrite other policies in Alabama, Louisiana, Mississippi, South Carolina and Texas through SageSure Insurance Managers. Additionally, FedNat does not as of this date have a mobile app and does not offer high coverage limits.

Despite its lower coverage limits and discouraging customer feedback, Federated National aims to be an affordable option for Floridians. Some Florida homeowners may have had problems finding their desired coverage from nationally rated homeowners insurance companies, making FedNat’s options well worth considering.

Additional policies offered by Federated National

FedNat is well situated in high-value home insurance, condo insurance, renters insurance markets and personal umbrella liability insurance markets. The company also offers other policy options, including:

  • Flood insurance
  • Animal liability
  • Landlord insurance

Frequently asked questions

Is Federated National a good insurance company?

Federated National is a solid option to consider when picking a home insurance company, as it offers competitive rates and is particularly designed for Florida residents seeking a wide range of coverage options. However, the company is challenged by its poor customer service reputation.

How do I file a claim with FedNat?

FedNat can submit claims either online or by contacting a FedNat agent at (800) 293-2532. The FedNat website provides more information on how to submit claims.

Written by
Rick Hoel
Insurance Contributor
Rick Hoel is an international business attorney and legal and insurance writer for Bankrate.com, Reviews.com and Accessibility.com. Over the last several years, he has covered topics dealing with personal and commercial insurance and technology and the law. Rick is General Counsel and Director of Risk Management and sits on the Board of Power Stow Americas Inc., a subsidiary of Power Stow A/S in Denmark, the world leader in the supply of tracked conveyor systems to the airline industry.
Edited by
Insurance Editor