Homeowners insurance companies get downgraded, affecting thousands of homeowners

Published: August 2, 2022 4:27 PM EDT
Updated: August 5, 2022 9:41 PM EDT

Many of Florida’s homeowners will have to search for new insurance after more insurers lost their A-rating.

It means if you have a mortgage, you are required to get a policy with a company in good standing.

The task of finding affordable homeowner’s insurance may prove to be complicated.

The search will begin for some during the middle of hurricane season.

The downgrading will affect more than 100,000 of homeowners.

Demotech, the company that rates Florida insurers, said more than a dozen were at risk of losing their A-rating.

They took a look, and now, just one company, United Property and Casualty Insurance Company, was significantly downgraded.

Two were withdrawn, meaning they are not financially stable enough to have a rating at all.

They are FedNat Insurance Company and Weston Property and Casualty Insurance Company.

Weston Property & Casualty was found insolvent days after its financial stability rating was withdrawn.

FedNat had already dropped about 68,000 policies earlier this year in an attempt to gain a better financial footing, but it didn’t work.

On Wednesday, Bankers Specialty Insurance and First Community, both part of Bankers Insurance Group, ratings were withdrawn as well.

Last week, the state said it would lean on Citizens Property Insurance to financially back the downgraded insurers so you wouldn’t have to go shopping.

The state told WINK News Citizens will back UPC Insurance.

One insurance expert said there is a lot in the air, but it’s still not looking good.

“The bad news is, it looks like we’re going to lose two more insurers, which would make six companies that go insolvent this year. And once again, we continue to see a very quick deterioration of the Florida home insurance market,” said Mark Friedlander with the Insurance Information Institute.

Even though there is some uncertainty, Friedlander recommends giving your insurance agent a call.

At the very least, they can begin shopping for a new policy.