I recently read an article titled:
Lenders may soon reject some Fla. property insurers
TALLAHASSEE, Fla. – Feb. 9, 2017 – Looming ratings downgrades for six to eight Florida-based property insurers could affect about 250,000 policyholders statewide, forcing some to find new insurers, according to sources familiar with an advisory issued this week by ratings agency Demotech.
In this article it outlined how Fannie Mae and Freddie Mac backed mortgages were re-evaluating the financial strength of some of our Florida Insurance companies. During 2016, Florida had widespread weather issues which included the tornado damage in Cape Coral, hurricane damage in the Panhandle and East Coast. These events created some homeowner insurance companies to fall short on their financial reserves.
If this happens, those that have Fannie Mae and Freddie Mac backed mortgages may have to change carriers. This can be a difficult task. It may be in our best interest to #1. Determine if our mortgages fall under the Fannie/Freddie backing. #2 Get a copy of our Homeowners Insurance Policy to see who our carrier is and #3, if this might apply to us, talk to our lender to see what information they have and if our Insurance companies are on the list of ones that might not be acceptable.