Posted On: January 25, 2020
Insurer ratings will be seeing a dip over the next few months, and that can be a scary thought. Some customers can be affected much more than others due to some lender companies only allowing “A grade” insurance companies. What makes this significantly worse for customers, is that Demotech (a financial analysis firm that predicts financial stability in the insurance industry) President, Joe Petrelli won’t release the list of companies to (possibly) see the downgrade.
However, Petrelli has stated that he predicts two to four companies will be downgraded this January, then another ten to fifteen could see a drop no later than Spring.
Why the Potential Downgrades?
The reasons for these possible downgrades start with the level of debt taken on by the affected companies, loss of investor interest, increased cost of reinsurance from severe weather, and increases in lawsuits/settlement costs.
This now brings us to an important message for our readers. Now, more than ever, it is going to be important to look around and understand who you have as your insurance company and if you should be looking elsewhere. Looking around now could help prevent headaches, save you money, and keep you aware of what’s going on.
What you shouldn’t worry about is where to go for your closing needs. Here at SETCO, we pride ourselves on being the number one Title Company in the Florida Panhandle. We also work with all parties in the closing process, and we understand what it is to be human. We all have different needs and desires, so we work very closely with each case. It doesn’t matter if you’re a buyer, seller, lender, or real estate agent, we can help you. To contact us, click the button below, and get started!