Homeowners Insurance Company Ratings
Before you purchase any insurance policy, you should evaluate the financial stability of the insurance company to ensure it has the ability to stay in business over the long term and pay claims as they arise.
There are several independent rating agencies that issue financial strength ratings for homeowners insurance companies. The most well-known of these are (in nolmbetical order):
None of the above rating agencies provide a rating for every insurer, and each agency has its own rating scale and standards which does make it difficult to compare company ratings.
When evaluating and comparing insurance companies, it is advisable to obtain ratings from multiple agencies in order to obtain a balanced assessment. However, it can be surprisingly difficult for consumers to obtain ratings for comparative purposes and many insurance companies only advertise their best rating. Be aware that ratings can and do change over time, so be sure to get the most current ratings, and remember to check them again when it’s time to renew your policy.
Below are the rating scales used by each of the five main agencies:
A.M. Best
| Secure | Vulnerable | ||
|---|---|---|---|
| A++ | Superior | B | Fair |
| A+ | Superior | B- | Fair |
| A | Excellent | C++ | Marginal |
| A- | Excellent | C+ | Marginal |
| B++ | Good | C | Weak |
| B+ | Good | C- | Weak |
| D | Poor | ||
| E | Under Regulatory Supervision | ||
| F | In Liquidation | ||
| S | Suspended | ||
Fitch Ratings
| Secure | Vulnerable | ||
|---|---|---|---|
| AAA | Exceptionally Strong | BB+ | Moderately Weak |
| AA+ | Very Strong | BB | Moderately Weak |
| AA | Very Strong | BB- | Moderately Weak |
| AA- | Very Strong | B+ | Weak |
| A+ | Strong | B | Weak |
| A | Strong | B- | Weak |
| A- | Strong | CCC | Very Weak |
| BBB+ | Good | CC | Extremely Weak |
| BBB | Good | C | Distressed |
| BBB- | Good | ||
Moody’s Investors Service
| Secure | Vulnerable | ||
|---|---|---|---|
| Aaa | Exceptional | Ba1 | Questionable |
| Aa1 | Excellent | Ba2 | Questionable |
| Aa2 | Excellent | Ba3 | Questionable |
| Aa3 | Excellent | B1 | Poor |
| A1 | Good | B2 | Poor |
| A2 | Good | B3 | Poor |
| A3 | Good | Caa1 | Very Poor |
| Baa1 | Adequate | Caa2 | Very Poor |
| Baa2 | Adequate | Caa3 | Very Poor |
| Baa3 | Adequate | Ca | Extremely Poor |
| C | Extremely Poor | ||
Standard & Poor’s
| Secure | Vulnerable | ||
|---|---|---|---|
| AAA | Extremely Strong | BB+ | Marginal |
| AA+ | Very Strong | BB | Marginal |
| AA | Very Strong | BB- | Marginal |
| AA- | Very Strong | B+ | Weak |
| A+ | Strong | B | Weak |
| A | Strong | B- | Weak |
| A- | Strong | CCC+ | Very Weak |
| BBB+ | Good | CCC | Very Weak |
| BBB | Good | CCC- | Very Weak |
| BBB- | Good | CC | Extremely Weak |
Weiss Ratings
| Secure | Vulnerable | ||
|---|---|---|---|
| A+ | Excellent | C+ | Fair |
| A | Excellent | C | Fair |
| A- | Excellent | C- | Fair |
| B+ | Good | D+ | Weak |
| B | Good | D | Weak |
| B- | Good | D- | Weak |
| E+ | Very Weak | ||
| E | Very Weak | ||
| E- | Very Weak | ||
| F | Failed | ||
