---
title: "A resolution recognizing that Florida's insurance market is gravely stressed by climate risks."
identifier: "119-SRES-556"
congress: 119
bill_number: 556
bill_type: "SRES"
version_code: "is"
version_type: "Introduced in Senate"
bill_url: "https://chamberzero.com/congresses/119/bills/sres/556"
source: "https://www.congress.gov/bill/119th-congress/senate-resolution/556"
site: "Chamber Zero"
site_url: "https://chamberzero.com"
rendered_at: "2026-06-03T23:49:42.560Z"
---
Whereas, as reported by Columbia Business School, because climate change is a "major risk" in Florida, many home insurers are at a high risk of insolvency;Whereas, following catastrophic hurricane losses, major insurers left the Florida market entirely, leaving small, local, and less stable insurers behind, many of which have already gone insolvent;Whereas only mortgages protected by home insurance from insurers with a high financial strength rating are eligible for the government mortgage-backed security program, which maintains liquidity in the mortgage market, and as a result of this, the United States housing market increasingly depends on the credibility of these ratings;Whereas an insurance rating agency called Demotech has become increasingly utilized by smaller home insurers in Florida;Whereas Demotech rates 98 percent of insurers "A" or above;Whereas insurers rated by Demotech are 30 times as likely to become insolvent as those graded by rival rating companies;Whereas, even when Florida homeowners are able to find a stable insurer, they are still forced to pay increasingly high home insurance premiums, now averaging $14,000 annually;Whereas the Florida Office of Insurance Regulation reports that home insurance rates in Florida have risen 34 percent since late 2022;Whereas Florida State law allows Citizens Property Insurance, the State-backed insurer of last resort, to levy a surcharge on all policyholders to recoup losses if its reserves fall short, levies that may be uncollectable in real life; andWhereas there are credible scenarios in which the losses of Citizens Property Insurance exceed its ability to pay claims: Now, therefore, be itThat the Senate calls on Fannie Mae and Freddie Mac to scrutinize Demotech’s rating practices and calls on the Treasury Department’s insurance office to examine the probability that State-backed insurers of last resort, including Florida's, ask for a Federal bailout.