Buying an insurance agency in Space Coast and Volusia

• Most clients renew every year, and the agency can show you the numbers by line of business.
• Several policies per household or business. A client with home, auto and umbrella coverage in one place is much less likely to leave than one with a single auto policy.
• A spread of carriers, so one cutting commissions or leaving Florida doesn't gut the book.
• Commercial accounts spread across many businesses, not a few large ones that a competitor could take in one meeting.
• Licensed customer service staff who handle renewals and changes without the owner.
• Every client, policy, carrier and renewal date recorded in the agency's management software.
• Carrier contracts in the agency's own name that can survive a sale.

• Commission statements from each carrier for three years, matched to the agency's books.
• Renewal rates by year and line of business.
• Florida homeowners policies. In recent years carriers have pulled back or left, and many policies have shifted into and out of Citizens, the state-created insurer of last resort. Know how much of the book depends on that market.
• Each carrier contract: who owns the book, how it can be ended, and whether a sale needs consent.
• Errors and omissions insurance, and any claims that the agency failed to arrange coverage it should have.
• Agreements with producers (the agents who sell for the agency): whether they can take or solicit clients if they leave.
• Carrier bonuses, which can swing widely year to year.

• How many clients renew each year, and has that changed?
• How much of the book is Florida homeowners coverage, and how much is with Citizens?
• Who's your agent in charge, and will they stay?
• Which carriers must consent to a sale, and have you talked to them?
• Under each carrier agreement, who owns the book?
• How much of your commissions come from your ten largest clients?
• Have you ever had an errors and omissions claim?

This region covers Brevard, Volusia and Flagler counties: Melbourne, Palm Bay, Titusville, Cocoa, Cocoa Beach, Merritt Island, Daytona Beach, Port Orange, Ormond Beach, DeLand, Deltona, New Smyrna Beach and Palm Coast. Brevard's economy is built around space. Rockets launch often from Kennedy Space Center and Cape Canaveral Space Force Station, and aerospace and defense manufacturers and their suppliers employ engineers, technicians and machinists across the county. Port Canaveral is a major cruise port.

Volusia depends more on tourism, beaches and big events, with Daytona's motorsports and motorcycle rallies drawing crowds. Health care and a large retired population matter too. Flagler County, around Palm Coast, is mostly residential. Machine shops, electrical and engineering firms, home service companies, marine businesses and restaurants all have a place here.

Brevard's fortunes follow the space and defense programs. A company that sells to aerospace firms should be able to show you how many customers it depends on and how secure their work is. Business in Volusia spikes around big events and the winter season, so look at revenue by month.

The whole coast faces storm risk. In 2022, Hurricane Ian brought flooding to much of Volusia, and Hurricane Nicole, which came ashore near Vero Beach six weeks later, washed away beaches and seawalls along the Volusia coast. Beachfront property needs careful insurance and structural checks. The Indian River Lagoon and the St. Johns River make boating and fishing part of daily life, which keeps the marine trades busy. Palm Coast and the Palm Bay area have added many new homes, and companies serving those areas have grown with them.