TAMPA, Fla. (WFLA) — More than a dozen property insurance companies are set to have their ratings downgraded in Florida.
The Florida Office of Insurance Regulation confirmed to 8 On Your Side Thursday that 17 insurance companies total are going to be downgraded by the rating agency Demotech. Industry experts say that downgrade will impact hundreds of thousands of families across Florida – including in the Tampa Bay area.
Mortgage providers Fannie Mae and Freddie Mac require homeowners to have a policy with an A-rated company. Anyone who has a policy with any of the 17 companies that will be losing its A-rating could be forced to find a new policy – potentially one that could cost more and provide less coverage.
8 On Your Side is working to find out which companies are having their ratings downgraded.
Meanwhile, Demotech’s decision to downgrade the companies is being challenged by the FOIR. Commissioner David Altmaier is requesting the rating agency reconsider the conclusions they’ve reached about the viability of the companies.
Gov. Ron DeSantis’ office sent the following statement after the announcement was made:
“We share the concerns expressed by Florida’s Chief Financial Officer (CFO) Jimmy Patronis and the Office of Insurance Regulation (OIR) regarding Ohio-based Demotech’s seemingly inconsistent application of its own methodology and its unilateral decision to downgrade numerous Florida insurers, affecting the policies of millions of Floridians. We will continue to monitor the situation and we support OIR in their core mission of providing stability to Florida’s insurance market.”
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