When it comes to insurance, financial stability is important because it ensures that the company can pay out claims if something goes wrong. This is why it's essential to check an insurer's rating before you choose them. Ratings are prepared by independent credit-rating agencies such as AM Best, Fitch and Moody's, which use a comprehensive analysis of a company's history and current performance to assess its financial stability. Understanding Condo Insurance: Meaning, Benefits, and Quick Acquisition Process