Adirondack Insurance Loses Financial Stability Rating: What NY Homeowners Need to Know

Adirondack Insurance Exchange in New York recently faced a setback when Demotech withdrew its financial stability rating. This news is vital for homeowners in New York with mortgages, as some lenders require insurance from companies with a minimum financial stability rating. Let’s explain what this means for you and what steps to take.

Is your home insurance with Adirondack Insurance, and how does that affect you?

What is a Financial Stability Rating?

Financial stability ratings assess an insurance company’s ability to meet its financial obligations, particularly when paying claims. A strong rating indicates a lower risk of the company facing financial difficulties and potentially struggling to cover claims.

Demotech Downgrades Adirondack Insurance

Demotech, a leading provider of financial stability ratings for property and casualty insurers, withdrew its rating for the Adirondack Insurance Exchange. This means homeowners with Adirondack coverage no longer have a Demotech rating to assure their lender.

How This Affects You (The Homeowner)

If you have a mortgage and your lender requires homeowners insurance from a company with a specific financial stability rating, this might affect you. Here’s what to do:

  • Contact your mortgage lender: They will clarify if the Demotech downgrade impacts your insurance and if you need to switch providers.
  • Review your Adirondack policy documents: The recent rating change might be mentioned there.
  • Shop around for new homeowners insurance: If you need to switch providers, get quotes from other companies with strong financial stability ratings.

Where to Find New Homeowners Insurance

Several reputable insurance companies in New York offer homeowners insurance. It’s wise to compare quotes and coverage options before making a decision. Consider factors like:

  • Financial stability rating (AM Best, Demotech, Fitch Ratings are some examples)
  • Coverage details (ensure it meets your needs)
  • Price (compare quotes but prioritize adequate coverage)


  • Adirondack Insurance is still operational, but the lack of a financial stability rating might impact some homeowners with mortgages.
  • Contact your lender for specific requirements regarding your homeowners insurance.
  • Shop around for alternative providers if necessary.
  • Call us we are here to help. Our Insurance Agency provides Insurance polices with MANY different insurance companies, with you just making one phone call to us. 518-377-7414

You can ensure your New York home remains properly insured by staying informed and taking proactive steps. Again, call us for answers, we are here to help with your home insurance.

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