In response to the potential ratings downgrades of 17 property insurers by Demotech, the Florida Insurance Department announced a special temporary reinsurance program with Florida Citizens Property Insurance Corporation (Citizens). This arrangement would allow those policyholders whose insurers have been downgraded below the required "A" rating with mortgages backed by Fannie Mae and Freddie Mac to meet an exception offered by those secondary lenders and maintain coverage during hurricane season.

Per the department, Fannie Mae and Freddie Mac have an exception to their ratings requirements for an insurer who is reinsured by a company who reinsures, by endorsement, 100% of the insurer's liability for losses payable, but unpaid by the insurer in the event of insolvency. They have stated that the Florida Insurance Guaranty Association (FIGA) would provide their statutory protections to the insured's of an insolvent insurer. This temporary program appears to provide additional coverage in the form of 100% reinsurance for any amounts not covered by FIGA.

In creating the program with Citizens, the department indicates it will meet the exceptions to the Fannie Mae and Freddie Mac guidelines. This program per the Department's Press Release states "would eliminate reasons for lenders to require a replacement policy or force place coverage solely upon ratings downgrades. The effect of this temporary reinsurance program would allow insurers to remain viable, and continue to provide coverage to their policyholders, and stem the growth of Citizens" which is on track to grow to nearly 1.2 million policyholders this year.