Florida Sues First Street Technology Over Flood Risk Scores

The State of Florida filed a lawsuit on Friday against First Street Technology Inc., alleging that the company’s climate risk assessments are deceptive and hurt home sales. The complaint was filed in Polk County state trial court.

Attorney General James Uthmeier says the company markets fear to advance a climate activism agenda while using that fear to make money. He argues that First Street’s scores often contradict official federal data, causing homes to take longer to sell and forcing owners to pay higher insurance premiums.

In a video posted to X, Uthmeier noted that First Street rates certain properties as having a major flood risk. FEMA, the federal agency that manages flood insurance, rates those same properties as having minimal flood hazard. That is the lowest federal classification.

Uthmeier said the inflated scores have real consequences for homeowners. He stated that homes sell for less, insurance costs rise, and the company refuses to correct obvious errors when homeowners try to fix them. He described the models as speculative and based on undisclosed choices.

The lawsuit names CEO Matthew Eby directly. The complaint alleges that Eby views climate change activism as a marketing problem. It quotes Eby from 2023, saying the best way to convey the impact of climate change is to make it personal and immediate for the individual’s wallet.

The state alleges two counts under the Florida Deceptive and Unfair Trade Practices Act. These counts cover unfair and unconscionable practices plus deceptive acts. Potential penalties include disgorgement of ill-gotten gains and civil penalties of $10,000 per violation. Penalties increase to $15,000 if the violation victimizes a senior citizen or a person with a disability.

The complaint points to a specific property in Pinellas County as an example of misleading data. First Street warned that the county had experienced flooding, yet the specific inland home, three miles from the coast, never flooded during the 2024 hurricanes. The document argues that out-of-state buyers might assume the county-wide history applies to their specific house.

Major real estate sites like Zillow, Realtor.com, and Redfin have used First Street scores in their listings. Zillow stopped including them on its main platform after complaints from California agents, but mortgage lenders and insurers still use the data. A Zillow study cited in the complaint found that only 52 percent of homes with high flood risk assessments sold, compared to 71 percent of homes with low risk.

The complaint also notes discrepancies between First Street’s data and other sources. It claims the company rates Orlando, which is 45 to 60 miles from the ocean, as being at risk for coastal flooding. It also rates Lake City for poor air quality, even though the American Lung Association recognized that city for low pollution in May.

First Street did not respond to a request for comment from Florida Phoenix. The company’s assessments cover floods, fires, wind, air quality, and heat. Uthmeier, who was appointed to the role last year after serving as an aide to former Governor Ron DeSantis, is currently running for election in his own right. The state is holding the company accountable, demanding clear disclosure that its reports are subjective and may be contradicted by other credible sources.