More chaos may be coming for Florida’s homeowners insurance market with the news that 17 insurance companies in the state may be facing possible downgrades.
Ratings firm Demotech says it has notified the 17 companies, although the list is not yet public.
“It is a huge disrupter for agents and consumers,” said Robert Norberg of Arden Insurance in Lantana. “Demotech rates these carriers based on their financial stability to pay claims, so if you get a downgraded company, it means that company is struggling."
Some state officials have questioned the ratings service and the timing considering it is now two months into hurricane season.
Norberg says the list of companies, when it's expected to be released next week, should give policyholders some concern, and they should consider shopping around for new coverage.
“I would say yes contact your agents, discuss the possibility of moving you to another company," Norberg said, "or find out what is needed to qualify to get to a new company, because if they don’t have enough to pay claims, you want a new carrier.”