Industry Insight: Security First Bundling Discount for Same-Agent Policies

Background: A New Kind of Bundling Discount

Security First Insurance, the Ormond Beach-based Florida property carrier, has introduced a small bundling discount that works differently from the traditional model. The carrier is not entering the auto insurance business. Instead, it rewards homeowners who place both their home and auto coverage through the same insurance agent, even when the auto policy is written by another company.

According to Insurance Journal, the discount took effect last week and is available to as many as 26,000 homeowners who purchase Security First's Premier Homeowners HO5 policy. It is worth up to 3% of the all-other-perils (AOP) premium. Wendy Maddalone, the carrier's director of communications and marketing, said the idea came directly from agents who asked for it.

Key Details of the Program

• Eligibility: Premier HO5 policyholders who use the same agent for home and auto.
• Size of discount: Up to 3% on the all-other-perils premium.
• Availability: Up to 26,000 homeowners.
• Timing: The bundle is part of broader Premier HO5 changes effective October 1, including new deductible and discount options.

Bundling home and auto with the same carrier is common. Bundling by the same agent is much less common, though Florida agents say it is not unheard of among insurers that focus on one line. Jacksonville-based Olympus Insurance, for example, partners with Mercury Insurance and offers discounts to consumers who use the same local agent.

David Thompson, a longtime Florida agent and consultant, called the move a good sign that carriers are finding ways to reduce premiums without reducing coverage. As of the end of June, Security First ranked 13th largest in Florida with 157,986 policies in force, according to Florida Office of Insurance Regulation quarterly reporting.

What This Means for Public Adjusters

A premium discount is not a coverage change, but it still matters to claims professionals for several reasons.

1. The discount applies to AOP premium, not the whole policy

As reported, the discount applies to the all-other-perils premium. Policyholders should not assume it changes how their hurricane or windstorm coverage is priced or adjusted. When reviewing a policy at intake, PAs should read the declarations page to see how each premium component and deductible is stated.

2. New deductible and discount options deserve a close read

The October 1 Premier HO5 changes include new deductible options. Policyholders who renew or switch into these options may be carrying different deductibles than they remember. A mismatch between what the insured believes they chose and what the policy says is a common source of claim disputes. Confirming the applicable deductible early prevents surprises when the estimate arrives.

3. Discount eligibility can be revisited at renewal

If a policyholder later moves auto coverage to a different agent, the discount may no longer apply, which could change the renewal premium. This is a premium matter and not a claim-handling matter. It is still worth mentioning to clients who ask why a renewal quote changed.

4. Agent relationships and claim communication

When one agent holds both lines, that agent often becomes the insured's first call after a loss. PAs should be prepared to coordinate with the agent, request policy copies, and confirm notice of loss timing. Florida's claim notice requirements are strict, so prompt written notice remains essential.

Practical Takeaways

• Request a certified copy of the full policy, including all endorsements, rather than relying on a summary or quote.
• Verify the deductible structure for each peril before building a claim estimate.
• Do not treat a premium discount as evidence of reduced or expanded coverage. Coverage is determined by policy language.
• Document the date and manner of notice to the carrier and the agent.
• Advise clients to keep renewal paperwork, since discount terms can change year to year.

The Bigger Picture

Florida homeowners have faced years of rising property premiums. Carriers that find ways to trim costs through distribution partnerships, rather than coverage cuts, are generating goodwill with agents. Policyholders still need to understand what they bought. A discount of up to 3% on AOP premium is modest, but it shows carriers competing for agent loyalty. Whether it translates into broader savings for homeowners remains to be seen.

How Louis Law Group Can Help

When a covered loss is underpaid, delayed, or denied, policy details such as deductibles, endorsements, and notice conditions often decide the outcome. Louis Law Group represents Florida policyholders in property damage disputes and works alongside public adjusters to review policies, evaluate carrier positions, and pursue fair payment. If you or your client is facing a disputed claim, call us at (833) 657-4812 for a consultation.

Source: Insurance Journal - Security First Offers Bundling Discount if Same Agent Used for Home and Auto