Sponsors (8)
The resolution draws necessary attention to weaknesses in Florida's homeowners insurance system and could spur reforms, but that spotlight also highlights risks that could raise costs for homeowners and taxpayers and tighten access to mortgage financing.
Florida homeowners and the public receive clearer attention to instability in the homeowners insurance market, highlighting risks to coverage and mortgage eligibility.
Homeowners and financial institutions are alerted to potential regulatory gaps around insurance rating agencies (e.g., Demotech), which could prompt oversight or reforms to protect consumers and the housing market.
Homeowners and taxpayers are made aware that the state insurer-of-last-resort (Citizens) could be overwhelmed, supporting consideration of reforms to limit cross-surcharges on policyholders or shore up backstops.
Taxpayers and the state could face increased fiscal strain or be required to intervene to stabilize the insurance market if insurer failures or Citizens shortfalls materialize.
Florida homeowners may face higher premiums, assessments, or surcharges if Citizens' insolvency risks materialize, increasing housing costs and affordability pressures.
Homebuyers and homeowners could face reduced mortgage eligibility or higher borrowing costs if the market relies on potentially unreliable ratings, tightening access to financing.
Based on analysis of 2 sections of legislative text.
Makes formal findings that Florida's homeowners insurance market and reliance on ratings pose systemic risks to homeowners, mortgage programs, and the state-backed insurer Citizens.
Official title: Recognizing that Florida's insurance market is gravely stressed by climate risks.
Introduced December 17, 2025 by Sheldon Whitehouse · Last progress December 17, 2025
Declares findings that Florida's homeowners insurance market is experiencing elevated insolvency risk, driven by climate-related catastrophes, insurer exits, and reliance on rating firms that may understate risk. Notes high homeowner premiums, heavy use of a single rating firm (Demotech) for smaller Florida insurers, and potential fiscal exposure for the state-backed insurer Citizens, which could be unable to cover claims or recoup losses.