Cypress Texas LLoyds is a part of Cypress Insurance Group, Inc., and it’s the 34th largest insurer of homes in Texas, based on total annual premium in 2010. Qualifying for home insurance can be difficult in some areas of the USA, due to increased risk of catastrophic storm damage in these locations. As many Texas property owners know, many home insurance companies are taking different approaches to reduce their risk, by new limitations on coverage & higher deductibles, not selling to new customers, canceling policies, or declining to cover some properties considered to be at too much risk for frequent or costly claims. It’s important for Texas home owners to shop with all the home insurance companies available to them, to find the right coverage at a reasonable price. Before people choose a company based on price and coverage, it’s smart to check the company’s complaint record, customer service reputation, and financial stability. This review of Cypress Texas Lloyds will give you useful information about customer service, complaints, & financial strength, to help you decide if this company is right for you. I’ll conclude my review with giving you the names of Cypress Texas Lloyds biggest competitors, so you know some of your other home insurance company options.
Cypress Texas Lloyds Home Insurance Review
Cypress Insurance Group was founded in 1999 by selling residential & commercial property insurance in Florida. In 2003, Cypress Insurance Group started selling property insurance in Texas, with it’s new subsidiary company. Cypress Texas Lloyds. Cypress sells insurance through local independent insurance agents located throughout Florida and Texas. These independent agents also represent other companies, though not all companies selling insurance in Texas.
You can see if there is a local independent insurance agent representing Cypress close to you, by visiting the Cypress Texas Lloyds Insurance Company website. Once you find a local agent, you can contact them to see if they can qualify you for a homeowners insurance quote. Always shop with more than one agent, because no one agent represents all the leading companies, and some companies, like State Farm, Allstate, & USAA, sell only through their own agents, or direct from the company.
Cypress Texas Lloyds Insurance Financial Strength Ratings
The most well-known company, rating insurance companies based on financial strength, is a company called AM Best. However, AM Best does not rate every insurance company. There are many smaller and newer insurance companies having no AM Best rating. Cypress is not rated by AM Best. Not having an AM Best rating is not a bad sign, but it does make it harder to evaluate the company’s ability to pay claims and stay in business.
A ratings company called Demotech, Inc. rates many companies not rated by AM Best, including Cypress. Demotech affirmed its “A” (Exceptional) rating on 11/24/2015 for Cypress Texas Lloyds. An “Exceptional” rating sounds great, but there are actually two ratings higher than “A” bestowed by Demotech — “A Prime” and “A Double Prime.”
A financial strength rating helps you determine if an insurance company has the money to pay claims, so if there are a large number of claims, or if there is an economic downturn, the company is not likely to go bankrupt, and will be able to pay your claim. However, it is not a measure of customer service or how well the company handles claims. A company can have the highest financial strength rating, but have many complaints about how it does not pay claims fairly.
If your insurance company’s financial strength is a concern for you, and it should be, since your home could be significantly damaged, in a catastrophic storm costing billions of dollars to insurance companies, you can check the Weiss Research rating for Cypress Texas Lloyds, and other companies, on the Weiss Research website.
Unlike most rating companies, which are paid by the companies they rate, Weiss receives no fees from the companies it rates. I really like Weiss Ratings. I think Weiss is more objective, but it’s also stricter & pessimistic. A “B” grade from any other rating company is a warning sign, but a “B+” with Weiss is still a very good rating. A company with a “B” grade from another rating company, may have a “D” rating with Weiss Research. Weiss charges people for access to its ratings, so I can’t give you the Weiss financial strength rating for Cypress Texas Lloyds here. But you can visit the Weiss website, where they often allow you to get several free ratings if you register for the website.
Cypress Texas Lloyds Home Insurance Complaints
The home insurance complaint ratios for Cypress Texas Lloyds listed below display the ratio of the company’s U.S. Market Share of closed complaints compared to the company’s U.S. Market Share of premiums for a specific policy type. Complaint ratios lower than “1” have less complaints than average, and complaint ratios over “1” have more complaints than average. The lower the complaint ratio, the less complaints against the company. Ideally, you want to choose an insurance company with complaint ratios less than 1.00 each year, at least over the most recent three years.
So you don’t have to worry about comparing complaint ratio numbers, I devised a rating system to help you identify a good or poor homeowners insurance complaint record.
Here’s how I determine my home insurance complaint ratings:
B = Better than average. Insurance companies with complaint ratios less than 75% of the average insurance company.
C = Average. Insurance companies with complaint ratios from 75% to 125% of the average insurance company. I use a minus sign (-) to indicate home insurance complaint ratios slightly worse than average (1.05 to 1.25) and a plus sign (+) for home insurance complaint ratios slightly better than average (.95 to .75).
W = Worse than average. Insurance companies with complaint ratios more than 125% of the average insurance company.
B = Better than Average C = Average W = Worse than Average
2014 Home Insurance Complaint Ratio = B (0) (No complaints)
2014 US home insurance premium = $35,272,180
2013 Home Insurance Complaint Ratio = C- (1.18)
2013 US home insurance premium = $39,632,495
2012 Home Insurance Complaint Ratio = B (0) (No complaints)
2012 US home insurance premium = $39,980,059
2011 Home Insurance Complaint Ratio = B (0) (No complaints)
2011 US home insurance premium = $33,645,122
2010 Home Insurance Complaint Ratio = B (0) (No complaints)
2009 Home Insurance Complaint Ratio = B (0) (No complaints)
The good news about Cypress Texas Lloyds homeowners, condo, & renters insurance is there were no valid complaints against the company filed with the Texas Department of Insurance for 2009, 2010, 2011, 2012 or 2014. In 2013, the number of home insurance complaints for Cypress Texas Lloyds was 18% more than the industry average. The Texas Department of Insurance website does not provide complaint information to the public, but I was able to check the complaint statistics for Cypress Texas Lloyds through the same source of home insurance company complaint ratings I use for all the company reviews on my website. The home insurance market share for Cypress Texas Lloyds decreased from 2013 to 2014, which may be a sign it does not have competitive home insurance rates.
Cypress Texas Lloyds Customer Service Ratings
It’s not hard to find poor reviews and complaints about any insurance company on the Web. All insurance companies have satisfied and dissatisfied customers, but only the unhappy ones are likely to write a review. You may read 20 complaints on a review website about a company, but there may be thousands of customers very happy with the same company.
To measure customer service, I like to look at the JD Power insurance studies. But a limitation is JD Power covers only the larger companies. I’m sure there are smaller insurance companies, not rated by JD Power, which may provide better service than some of the top rated larger companies. Cypress is not rated by JD Power. How should you evaluate its customer service?
With smaller companies like Cypress, your independent agent is your primary contact with the company. I think the best measure of customer service is the quality of the independent agent selling you the policy.
How do you know when you are speaking to a good agent? A good agent explains your coverage and options, and may make recommendations, but lets you decide what you need. A good agent has many personal stories of when the agent provided great service, by helping customers handle an issue with a claim or resolve a problem.
By talking to several agents, and getting several opinions on the advice & information each agent gives you, it’s easier to tell the good agents from the bad or mediocre agents.
Leading home Insurance Companies competing with Cypress Texas Lloyds in Texas
Comparing the price and coverage available from many home insurance companies willing to insure you, is the best way to find the best coverage for you at a competitive price. However, many people do not know the leading companies selling home insurance in their state. Here are the 10 largest companies insuring homes in Texas:
1. State Farm Lloyds
2.Allstate Texas Lloyds
3. Texas Farmers Insurance Company
4. United Services Automobile Association (USAA)
5. USAA Texas Lloyds Company
6. Farmers Insurance Exchange
7. Allstate Fire & Casualty Insurance Company
8. Travelers Lloyds of Texas Insurance Company
9. Nationwide Property & Casualty Insurance Company
10. Safeco Insurance Company of Indiana
Did this Cypress Texas Lloyds home insurance review explain what you need to know about the company? Tell me about it. Please leave a comment on my facebook page. Follow me on Twitter for important insurance consumer news and new blog entries at CarInsWatch.