Florida’s property insurance crisis needs a comprehensive fix

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 a complete housing market meltdown. Name calling won’t win you friends or influence people, much less create more affordable insurance options.

Last month, Demotech, Inc., an Ohio-based financial appraisal firm, announced it will offload 17 private insurers operating in Florida. The move prompted a sharp response 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 tough rating agency,” playing “havoc with the financial lives of millions of Floridians.” This, from a guy who seems more interested in bashing President Biden and the IRS than finding a solution to a crisis that threatens the state’s housing market and the larger economy.

Leave a Comment

Your email address will not be published. Required fields are marked *