AM Best and Demotech, Inc. Rating & Homeowners Insurance Impact FAQ

This rating reflects our strong financial position, disciplined underwriting practices, and long-term commitment to serving policyholders. 

If you have received a letter from your lender about California Casualty's financial rating, it's likely related to the mid-2023 rating change by AM Best.

California Casualty’s ‘A’ rating from Demotech is accepted by most mortgage lenders, including those affiliated with Freddie Mac and Fannie Mae.

As these letters differ by lender, please contact your lender directly to determine if there is any action that you need to take.

If your mortgage lender requires a different rating agency or has unique insurance requirements, please contact us directly. We will work with you to review your situation and assist with a solution if needed. You can reach us at 1.800.800.9410. 

You can use the My Home by Freddie Mac look-up tool to determine if your loan is underwritten by Freddie Mac.

To reiterate, the Demotech, Inc. Financial Stability Rating® is accepted by most mortgage lenders, including those affiliated with Freddie Mac and Fannie Mae.

If your mortgage lender requires a different rating agency or has unique insurance requirements, please contact us directly. We will work with you to review your situation and assist with a solution if needed. Contact us at: 800-800-9410.

No. Most auto lenders and leasing companies do not require a specific financial strength rating from your insurance company. As long as you maintain the required coverage limits (like liability, comprehensive, and collision), your California Casualty auto policy fully satisfies lender and lease requirements.  

Yes. While the financial ratings of insurance companies generally remain fairly stable, a decrease in rating is usually in response to major events. This can include prolonged periods of unprecedented inflation, catastrophic weather-related events, to sustained underwriting losses (paying out more in claims than what is collected in premium). Alternatively, an increase in rating can be earned through sustained financial discipline, improved operating efficiency, and a solid strategic foundation. They're not frequent and are usually the result of several positive trends aligning over time.

Yes. Rest assured that California Casualty has the necessary capital to serve our customers and the ability to pay any potential claims.

California Casualty's financial rating does not impact the high quality of service that we provide, the ability to fulfill promises to all policyholders, or the outlook for continued strength of the company. You can count on receiving the exceptional service you deserve.