Evolve Insurance Agency has learned that Demotech, Inc., a well-known financial rating company, has withdrew their ratings of 2 homeowners insurance companies in Florida. St. Johns Insurance Company and Avatar Property and Casualty Insurance Company had their financial ratings withdrawn on Thursday, February 17th, 2022 and Friday, February 18th, 2022, respectively.
Demotech, Inc. is a well-known company in the financial industry who is responsible for reviewing the accounting records, underwriting principles, and overall profitability of insurance companies to determine if they meet the standards needed to qualify for a ‘rating’ by their executive team. This rating, which is usually given as a letter followed by a adjective (i.e. “A, Exceptional”), is used to describe the company in a favorable or unfavorable way, and is viewed by many in the industry as a sign the insurance company is solvent and has a path towards continued growth and profitability. Some institutions, like mortgage brokers and lenders, use this rating to determine if the company meets the criteria to be a qualified insurer of a borrower’s home. When an insurance company is downgraded, or even worse has their rating withdrawn entirely, it can be a sign of a company in financial distress – and potentially a sign that their ability to remain solvent is questionable. In extreme circumstances, having a rating withdrawn can also mean that carriers insurance policy is no longer acceptable to mortgage brokers, lenders, and other underwriters when it comes to a borrower maintaining insurance coverage on their home.
Given the current market conditions, this news comes as no surprise to Evolve Insurance Agency who’s ready to take action to keep you and your assets covered. If you are insured with either of these two insurance companies, or are experiencing other insurance related issues, the time to act is RIGHT NOW. In the previous 6 weeks, 7 large insurance companies have announced they are no longer offering policies to new customers in the State of Florida, and we expect that number to keep growing. Don’t wait until it’s too late - request a quote today by visiting our quote request page in the upper right-hand corner of this page or give our office a call at 941-244-2760. We’ll go to work right away on getting your coverage secured with a reputable insurer.
David Kronk Jr.,
Owner, Evolve Insurance Agency
Photo by Andrea Piacquadio from Pexels