Florida plans to back up insurance companies facing demotion

TALLAHASSEE, Fla. (AP) — Florida has taken steps to support property insurance companies facing a downgraded rating in an effort to help thousands of homeowners meet mortgage requirements rather than be forced to search for new fonts.

The state-created Citizens Property Insurance Corp. will reinsure 17 companies that ratings firm Demotech says will be downgraded, the Office of Insurance Regulation said on Wednesday.

This means Citizens, which was set up to provide insurance for homeowners who cannot find policies from private companies, will guarantee that the companies will be able to pay claims. Otherwise, homeowners with mortgages from Fannie Mae and Freddie Mac would have had to seek new policies.

“Due to the uncertainty surrounding the status of Demotech’s ratings, we have been forced to take extraordinary action to protect millions of consumers,” Insurance Commissioner David Altmaier said in a press release. “In the event that we were to implement this temporary solution, consumers will not need to seek coverage elsewhere, agents will not need to move policies and lenders can be confident that these insurers continue to respond. mortgage requirements.

Kristan F. Talley