Financial analysis firm declines to lower ratings of Florida property insurers
An alarm bell was sounded in the insurance sector last month when Demotech, the Ohio-based independent financial analysis firm, indicated that it was strongly considering lowering the financial strength ratings of six to eight Florida homeowners insurance carriers to below an A.
Why this might not seem like too much of a concern to the average person, it was actually rather distressing news to the 250,000 customers of these insurance carriers, as most mortgage lenders — including federal lending agencies Freddie Mac and Fannie Mae — require borrowers to secure homeowners’ insurance from an A-rated insurer as a condition of financing.