Why Choosing an A-Rated Insurance Company Matters More Than Ever

Have you ever wondered if your insurance company is financially stable enough to pay your claim when you need it most?

What happens if your insurance provider goes bankrupt or gets downgraded?

Unfortunately, this is happening more often than ever before. If your insurer is not financially strong, you could be left without coverage when disaster strikes.

Let’s break down why A-rated insurance companies are the best choice, how to check your insurer’s rating, and what to do if your provider has been downgraded.

What Is an A-Rated Insurance Company?

Understanding Insurance Ratings

Insurance companies are rated for financial strength by independent agencies like:
✔ A.M. Best
✔ Demotech

An A rating means the company is:
✅ Financially stable
✅ Able to pay claims, even during major disasters
✅ Well-managed with strong reserves

Why Should You Care About an A Rating?

If a large-scale disaster (like a wildfire or hurricane) leads to thousands of claims at once, only A-rated insurers have the financial backing to pay out claims without going under.

Example: The Marshall Fire in Colorado

• Many homeowners had their claims denied or delayed because their insurer wasn’t financially stable enough to handle the surge in payouts.
• If an insurer isn’t A-rated, there’s a higher risk of delayed payments, disputes, or total bankruptcy.

The last thing you want is to fight for a payout when you need it most.

Why Financial Stability Matters Now More Than Ever

What Happens If Your Insurance Company Fails?

Between 2021 and 2023, 17 insurance companies went bankrupt, leaving thousands of customers stranded without coverage.

Why are so many insurers failing?

• Natural disasters are causing record-breaking claim payouts.
• Inflation has made rebuilding homes more expensive.
• Regulations are limiting insurers’ ability to increase premiums to match rising risks.

If your insurance company fails, you could face:
❌ Claim delays or denials
❌ Higher premiums when switching providers
❌ Difficulty finding a new policy

How to Check If Your Insurance Company Is at Risk

You can quickly check your insurer’s rating online:

1. Search for your insurer’s name + “A.M. Best rating” or “Demotech rating.”
2. If they have a B rating or lower, it’s time to consider switching.

Or, call us at Trailstone, and we’ll check your provider’s rating for free.

Recent Insurance Downgrades and What They Mean for You

Which Insurance Companies Have Been Downgraded?

Many major insurers, including State Farm General, have been downgraded to a B rating or lower.

Why Does This Matter?

• If your umbrella policy requires an A-rated provider, a downgrade could mean your claims will be denied.
• If your insurer is at risk of bankruptcy, switching now can prevent gaps in coverage.
• Some mortgage lenders require homeowners to have coverage with an A-rated provider—if your insurer is downgraded, you may need to switch to remain compliant.

What Should You Do If Your Insurer Gets Downgraded?

✅ Switch to an A-rated provider ASAP
✅ Check ratings annually—insurance companies can recover (Allstate recently went from B to A-).
✅ Work with an independent insurance agency (like Trailstone) to find a stable provider.

How Trailstone Protects You

At Trailstone Insurance Group, we only work with A-rated providers to ensure your claims are paid—no matter what.

✅ We partner with 40 A-rated carriers to find the best coverage for you.
✅ We review your policies annually to ensure financial stability.
✅ We advocate for you—our team works for you, not the insurance companies.

Customer Success Story: Brett Patchin

✅ Saved $800 on his home and auto policy.
✅ Switched to an A-rated provider for better protection.
✅ Had a seamless, stress-free experience with our team.

Google us and check our reviews—our customers trust us to find them the best policies.

What to Do Next

If you’re unsure about your insurer’s rating, take action today:

✔ Check your insurer’s rating at A.M. Best or Demotech (links in the description).
✔ Call us for a free policy review—we’ll find you the best A-rated coverage.
✔ Switch before disaster strikes—don’t wait until your policy is canceled or your claims are denied.

At Trailstone Insurance Group, your protection is our priority. Let us help you find a financially stable provider that will be there when you need them most.

Contact us today and secure your coverage with an A-rated insurer.