Florida has sued climate-risk modeling company First Street Technology, alleging its home scores rely on flawed methods and can unfairly damage property values. The case challenges ratings shown to homebuyers online and raises broader questions about how climate hazards should be measured—and how much influence those estimates should have in real estate decisions.
Key takeaways
- Florida Attorney General James Uthmeier filed the lawsuit on Oct. 23, 2026, under the state’s consumer-protection law.
- The state says First Street’s scores may mislead buyers and harm sellers by affecting prices and time on the market.
- First Street says its models assess property-level risks differently from federal flood maps; the lawsuit seeks restrictions and financial penalties.
What Florida alleges
The complaint accuses First Street of deceptive and unfair practices in marketing its Risk Factor product, which rates properties for hazards including flooding, wildfire, extreme heat and air quality. Uthmeier alleges the ratings are presented as scientifically reliable despite what the state calls faulty risk factors, undisclosed modeling choices and discrepancies with official data.
Florida claims the scores can make homes take longer to sell and sell for less, and could also influence insurance costs or coverage. The lawsuit says First Street’s presence on real-estate platforms gives its ratings broad consumer exposure and may help the company sell more detailed, paid property reports.
Dispute over how risk is measured
The complaint points to differences between First Street’s flood ratings and Federal Emergency Management Agency floodplain maps. First Street’s approach, as described in the lawsuit, evaluates risk at individual properties and includes changing climate conditions and intense rainfall. FEMA maps, by contrast, are characterized in the complaint as assessing risk at a community level.
The state also challenges First Street’s claims that its methods are peer-reviewed, transparent and accurate. Florida is seeking a jury trial and an order barring certain claims about the ratings. It also seeks penalties of up to $10,000 per alleged violation of the state law, or $15,000 for violations involving senior citizens.
Real-estate platforms and market impact
First Street’s scores have appeared on sites including Zillow, Redfin and Realtor.com. The lawsuit cites findings that homes rated as having higher flood risk may be more likely to sell below their original asking price and take longer to sell. Zillow stopped displaying the scores directly on listings in late 2025 and instead linked users to external information.
Florida’s case follows a similar lawsuit Nebraska brought in August. First Street assigns property-level ratings on a 1-to-10 scale, with estimates extending decades into the future. Supporters of such tools argue they can help buyers understand hazards that may not be reflected in traditional maps, while critics question how models handle uncertainty and local conditions.
Broader stakes for climate-risk data
MSCI acquired First Street in 2026 in a deal valued at $120 million. MSCI declined to comment on the Florida case. The lawsuit could test when disagreements over modeling methods amount to consumer deception—and whether aggressive legal challenges might discourage companies from providing property-level climate-risk information.
The dispute comes as Florida homeowners face rising insurance costs and exposure to storms and flooding. Its outcome may affect not only First Street, but also how real-estate platforms present climate data and how consumers weigh modeled risks when buying or selling a home.