When you’re shopping for insurance, it’s easy to get overwhelmed by the number of coverage options available. But sometimes, your challenge isn’t too many choices—it’s too few. If you’ve been labeled “high risk” or have unusual insurance needs, you may find that standard insurance companies won’t cover you.
That’s where non-admitted insurance carriers come in.
At Vargas & Vargas Insurance, we frequently help individuals and businesses who’ve been declined by traditional insurers find the coverage they need—often through non-admitted carriers.
So, what exactly are non-admitted carriers? How are they different from admitted ones? And most importantly, are they the right fit for your needs?
Let’s break it all down.
What Is the Difference Between Admitted and Non-Admitted Carriers?
The key difference lies in state regulation and oversight.
- Admitted carriers are licensed by the state’s Department of Insurance and must follow strict regulations around pricing, policy language, and claims handling.
- Non-admitted carriers are not licensed in the state but are legally allowed to operate under surplus lines rules, offering coverage for risks that admitted carriers typically avoid.
What Are Admitted Carriers?
Admitted insurance carriers are state-licensed providers. This means their policies, rates, and business practices are reviewed and approved by your state’s Department of Insurance.
Advantages of Admitted Carriers:
- Stronger consumer protections: You can appeal a claims decision with your state’s insurance department.
- Access to state guaranty funds: If the carrier becomes insolvent, your claims may still be covered (typically up to $500,000).
- Standardized policy terms: Good for common coverage needs like personal auto or homeowners.
Disadvantages:
- Limited underwriting flexibility: If you’re considered high-risk (e.g., flood zone property, prior claims, coastal location), they may decline to insure you or quote a very high premium.
What Are Non-Admitted Carriers?
Non-admitted carriers—also called surplus lines insurers—are not licensed by the state, but they are allowed to provide coverage for unique or high-risk situations that standard carriers won’t touch.
They aren’t subject to the same regulations as admitted carriers, giving them more flexibility in how they design coverage.
Advantages of Non-Admitted Carriers:
- Broader coverage options: Ideal for properties in wildfire-prone areas, coastal zones, or with unique construction.
- Custom policy solutions: Better suited for insuring niche businesses or unusual liability risks.
Disadvantages:
- Fewer consumer protections: You cannot appeal claim decisions with your state, and policies are not backed by the state guaranty fund.
- Higher premiums: These carriers typically insure higher-risk scenarios, so costs are often greater.
Examples of Non-Admitted Insurance Carriers
If you’ve been declined by a standard insurer, your agent might explore policies from non-admitted carriers. Here are a few common and reputable options:
- Lloyd’s of London – An international market for insuring highly specialized or high-value risks.
- Scottsdale Insurance (a Nationwide company) – Offers tailored E&S coverage for hard-to-place property and liability needs.
- Kinsale Insurance – Specializes in excess and surplus lines, including vacant properties, cyber liability, and more.
- Weston Insurance – Often used in coastal regions for wind, hurricane, or storm surge coverage.
- Markel – Surplus Lines Division – Known for covering niche industries and nonstandard risks.
These companies help fill coverage gaps where admitted carriers fall short. However, since their policies are not regulated by the state, it’s critical to review all terms carefully and work with an experienced agent.
So, Which Is Right for You?
If your insurance needs fall into a conventional category and you’re not viewed as high-risk, an admitted carrier will likely offer the protection—and consumer safeguards—you’re looking for.
But if you’ve been turned away by standard insurers, a non-admitted carrier might be your only (and best) option. This is particularly true if your property is in a flood zone, near a coastline, or you operate a business with unusual exposures.
Either way, you have options—and we can help you explore them.
Let’s Talk About Your Coverage Options
At Vargas & Vargas Insurance, we believe everyone deserves access to clear, honest guidance—especially when navigating complex or high-risk insurance scenarios. Whether you’re considering admitted or non-admitted carriers, we’ll help you understand the risks, costs, and coverage details so you can make a confident decision.
Have questions? Need help finding the right policy? Contact our team today.
Still having trouble insuring your home? You might need FAIR Plan Insurance. Learn what this state-backed coverage offers and whether it’s right for you, click here.
