Florida Sues First Street Over Climate Risk Scores
The state claims the company provides alarmist flood ratings that contradict federal data.
Updated on Oct. 26, 2026 in Utilities
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Florida Attorney General James Uthmeier has filed a lawsuit against First Street, alleging the company issues climate risk scores that harm property values and conflict with FEMA data. The state seeks to restrict the firm from providing these assessments without disclosures regarding their subjectivity.
Why it matters
Florida officials argue these climate risk scores unfairly depress home sales and property values by labeling areas as high risk that federal agencies categorize as minimal hazards. This legal challenge highlights growing state-level scrutiny over how private data models influence the real estate market.
First Street generates numerical climate risk ratings for flood and heat that are currently integrated into major platforms including Zillow, Redfin, and Realtor.com. The company requires payment to access the specific details behind its risk modeling.
The players
James Uthmeier
James Uthmeier serves as the Attorney General for the state of Florida.
Mike Hilgers
Mike Hilgers is the Attorney General for the state of Nebraska.
First Street
First Street is a private company that provides climate risk assessments and numerical ratings for residential properties.
FEMA
The Federal Emergency Management Agency is a United States government agency responsible for coordinating the federal response to disasters.
The details
The lawsuit alleges that First Street consistently assigns major flood risk labels to properties that FEMA classifies as minimal flood hazards. Florida officials contend these inconsistencies create alarmist narratives that negatively impact homeowners and the housing market.
Timeline
August 2026: Nebraska filed its own lawsuit against First Street.
October 26, 2026: Florida Attorney General James Uthmeier announced the new legal action.
Market Landscape
This lawsuit marks a formal challenge to the growing reliance of real estate platforms on third-party data models for property risk assessment. By targeting the lack of disclosure regarding model subjectivity, Florida is attempting to shift the balance of power between private data providers and federal benchmarks like the National Flood Insurance Program's official flood hazard maps.
Homeowners in Florida may see changes in how climate risk information is displayed on real estate websites if the court restricts First Street's assessment methods. This legal fight could also lead to greater transparency requirements for climate data providers in the future.
The takeaway
The dispute underscores the increasing friction between private climate modeling companies and traditional government risk assessments. Property owners should verify property hazards through official federal agencies rather than relying solely on third-party risk scores when evaluating climate concerns.
Further reading
For more background on how infrastructure and utility data influence state regulations, visit Utilities.
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Do you trust private climate risk scores provided by third-party companies when buying a home?
