There may be more bad news on the horizon for Florida homeowners as state insurers seem poised to raise rates once again. Several insurance companies throughout the state are facing a financial strength rating (FSR) downgrade that could lead to rates increase. What’s worse, the downgrade may force homeowners to seek a new insurer if their mortgage company requires them to have a policy with an insurance company that has an A rating.
Healthy insurance companies are those with a rating of either A or S, the latter meaning Substantial. However, major lenders like Freddie Mac, for example, do not recognize S ratings. This has not been an issue as Florida insurers have managed to keep their A rating for years.
A few reasons as to why insurers are facing FSR downgrades include the level of debt the companies have taken on, a rise in reinsurance costs as a result of severe weather, burgeoning costs related to lawsuits and settlements.
This information is provided by Miami insurance attorney Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with one of our attorneys or a Miami insurance settlement lawyer and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.