Florida’s property insurance crisis needs a comprehensive solution

You’d think state leaders would choose their words more carefully when addressing the only property insurance rating agency in the midst of our insurance crisis and a full-blown housing market downturn. Name calling won’t win friends or impress people, creating much less affordable insurance options.

Last month, Demotech, Inc., an Ohio-based financial evaluation firm, announced that it would downgrade 17 private insurers operating in Florida. The move prompted a sharp backlash from state leaders, including counterproductive complaints to federal home mortgage agencies about Florida’s lone property insurance rating agency.

In his letter to Fannie Mae, Freddie Mac, and the Federal Housing Finance Agency, Florida Chief Financial Officer Jimmy Patronis called Demotech, Inc. “a rouge rating agency” playing “wreak havoc on the financial lives of millions of Floridians.” This, from a guy who seems more interested in knocking down President Biden and the IRS than finding solutions to the crisis that threatens the state’s housing market and the larger economy.

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