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 standing between our insurance crisis and the complete collapse of the housing market. The appeal won’t win friends or influence people, much less create more affordable insurance options.

Last month, Demotech, Inc., an Ohio-based financial ratings firm, announced it would downgrade 17 private insurers operating in Florida. The move drew a backlash from state leaders, including counterproductive complaints to federal home mortgage agencies about Florida’s only 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 red-handed rating agency” that is playing “havoc in the financial lives of millions of Floridians.” This from a man who seems more interested in taking on President Biden and the IRS than finding a solution to a crisis that threatens the state’s housing market and the larger economy.

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