Adirondack Insurance Exchange Loses Financial Rating: What Homeowners Need to Know

What is going on with the Adirondack Insurance

Homeowners Insurance, Mortgage Requirements, New York, Demotech, Financial Stability Rating

Adirondack Insurance Exchange (Adirondack), a New York-based provider of homeowners insurance, recently faced a setback when Demotech, an insurance rating agency, withdrew its financial stability rating. This news has critical implications for Adirondack policyholders, especially those with mortgages.

Why This Matters for Mortgaged Homes

Many mortgage lenders require homeowners to carry insurance from a company with a minimum financial stability rating. Without this rating, Adirondack coverage may not be considered valid proof of homeowners insurance for your mortgage. This could result in a letter from your bank requesting you to switch to a different, qualified insurance company.

Finding New Homeowners Coverage

If you receive such a letter, don’t panic.

Here’s what to do next: Call or text us for immediate help. 518-377-7414

  • Contact your mortgage lender: Discuss the situation and inquire about the specific requirements for your homeowners insurance.
  • Shop around for quotes: Get quotes from different insurance companies to find the best coverage at an affordable rate.
  • Work with an independent agent: An agent can guide you through the process and help you find a policy that meets your lender’s needs.

If you do not replace your Adirondack policy with a new stable Insurance company, your bank (Mortgage company) will ‘force place a policy,’ which means they will purchase a very expensive insurance policy on your behalf that ONLY provides coverage for the outstanding mortgage—no liability and no insurance for your equity in the home.

About Existing Adirondack Policies

While the lack of a financial rating may impact your ability to use Adirondack for mortgage compliance, it doesn’t necessarily affect the validity of your existing coverage. Adirondack is still obligated to fulfill the terms of your current policy.

Refunds and Cancellations

If you cancel your Adirondack policy due to the rating withdrawal, you’ll likely be entitled to a pro-rated refund for any unused portion of your premium. Adirondack, not your lender, will handle this refund process. Contact Adirondack directly to inquire about their cancellation policy and how to receive your homeowners insurance refund.

Stay Informed:  Contact us at 518-377-7414 to provide you with choices to move forward at the best price and coverage. You have a choice video

Adirondack has been transparent with policyholders, sending out notifications about rating withdrawals. You can also find updates on their website:

This situation highlights the importance of staying informed about your insurance coverage. Review your policy regularly and look for changes from your insurance company or lender.

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