How Florida Insurance Downgrade Could Effect Your Home Owners Insurance
Looming ratings downgrades for six to eight Florida-based Home Owners Insurance property insurers could affect about 250,000 Florida Home Owners Insurance policyholders statewide, forcing some to find new insurers, according to sources familiar with an advisory issued this week by ratings agency Demotech. The company, whose Financial Strength Ratings (FSNs) determine which insurers are acceptable to lenders of mortgages backed by Fannie Mae and Freddie Mac, also announced that two state Supreme Court rulings that went against insurers in 2016 prompted it to suspend the standards by which it rates 57 Florida insurers.
The rulings, along with increased claims costs blamed on the Assignment of Benefits repair clause, have “revised claims procedures, practices, and protocols from the industry standards that previously existed to a ‘Florida only’ standard,” Demotech said in the Feb. 6 advisory. ( Source Ron Hurtibise Contact Reporter Sun Sentinel)
HOW DOES THIS EFFECT YOU AS A FLORIDA HOME OWNER AND YOU HOME INSURANCE ?
In the event that your home owner insurance carrier loses its A rating there is a possibility that your lender will forced-place insurance on you and add it to your monthly mortgage payment, you might have no choice but to purchase a new policy leaving you with these inflated costs.
Even worse is having a under funded insurance company insure your home. In the event of a natural disaster, these insurers will leave you unprotected and responsible for most if not all the repairs and costs. They will close down and go bankrupt like in previous hurricanes Andrew and Wilma. This is why you need to have the best insurance possible in place.
GET THE LIST OF DOWNGRADED INSURERS EMAILED TO YOU TODAY! SEE IF YOUR INSURANCE COMPANY ON THE LIST?
If you’re frustrated with rising insurance home insurance or worried about your insurer protecting you and your family. I invite you to contact get a quote click our agency L & S Insurance Agencies today or call 561-969-0110. With over 15 A+ Rated Home Insurance Companies we have you covered.