(WFLA) — In four days, a ratings agency plans to downgrade 17 property insurance companies in Florida, according to state officials.
State leaders warn financial chaos will follow and millions of Floridians could be impacted.
8 On Your Side Investigator Mahsa Saeidi reached out to several agencies to obtain the list of at-risk companies. As of Friday night, the state is not disclosing the list.
If the downgrades happen as planned, millions of Floridians will be in default of their mortgage requirements.
Insurance brokers told 8 On Your Side homeowners will be given a few months to find acceptable coverage.
If they can’t, their mortgage company would force them to accept a new policy with a new carrier.
Bottom line — homeowners will end up paying twice the price for half the coverage, multiple insurance experts said.
Ronald Assise CIC, CPRM is an insurance broker.
“With force-placed insurance, the only party protected is the mortgage company,” he said. “So you’re paying an outrageous premium and basically getting no coverage.”
If Demotech doesn’t back down under pressure can anything be done? That’s the question 8 On Your Side had for State Sen.