27 Florida Insurance Companies Face Downgrades

Last week Demotech, the primary financial stability rating company for Florida homeowner insurance companies, sent letters to 27 insurance companies notifying them they would be loosing their A rating and would be downgraded to either S or M.  This is significant because most mortgage companies require an A rating. So, this would require home insureds with these companies to find new coverage or face being force placed by their mortgage provided. If 27 companies were downgraded it would impact hundreds of thousands of home insurance policies across the state.

The Florida Office of Insurance Regulation quickly challenged Demotech's intended downgrades. On Monday Demotech postponed the downgrades to give additional time for review.  That doesn't mean companies will not be downgraded, only that there is a pause while additional information is considered.

We'll keep you updated as the situation continues to develop.  Be sure to visit www.justasktim.com for more information or give us a call at 954-678-2658 if you have a question.

Tony Prete, Owner
​Teal Insurance Management