Hurricanes. Heavy rains. Floods Fraud are among the causes cited for the property insurance crisis in Florida. Now you can add Demotech, the financial rating company.

This past week, Demotech sent letters to 17 insurers in the state that their ratings will be downgraded upon review of the 2022 hurricane season reinsurance packets.

The Florida Office of Insurance Regulation (OIR) confirmed the letters from Demotech informing the companies that their ratings will be downgraded from “A” to either “S” (Substantial) or “M” (Moderate).

Mortgage providers Fannie Mae and Freddie Mac require homeowners to have a policy with an A-rated company. These homeowners would be forced to find new insurers, potentially at higher costs.

According to a report on the website Reinsurancene.ws the move by Demotech could push the state’s insurance market “into further turmoil,” adding that it could become “increasingly challenging to survive” and place thousands of policyholders at risk of defaulting on their mortgages.

Demotech’s decision to downgrade the companies is being challenged by the the OIR, who sent a letter to Demotech requesting the rating agency reconsider the conclusions they’ve reached about the viability of the companies.

Islander News is working to find out which companies are having their ratings downgraded.

In the meantime, you can check your present insurance carrier’s rating from Standard and Poor’s Ratings, click here or call 212-438-2400.