How does the Citizens takeout program work?

What does "depopulation" mean in Florida insurance?

Citizens Property Insurance Corporation was created as Florida’s insurer of last resort: coverage for homes the private market wouldn’t write. Because Citizens isn’t supposed to compete with the private market, state law (Section 627.3511, Florida Statutes) directs Citizens to work with private insurers willing to take policies off its books. That transfer process is called depopulation, and an individual policy moving to a new company is a “takeout.” The goal, as Citizens frames it, is to reduce the corporation’s overall exposure and the odds that policyholders statewide get hit with post-hurricane assessments if Citizens ever needs to pay claims that exceed its reserves.

Depopulation has moved a large share of the state’s book of business in a short time. Citizens grew to roughly 1.4 million policies at its 2023 peak, as private carriers pulled back from the state. Since then the count has fallen sharply as private companies have returned and taken policies through the takeout process, dropping to under 400,000 policies by the end of 2025, the lowest total since at least 2012. That decline is the practical, day-to-day result of the letters described on this page going out to individual policyholders.

What is in the depopulation letter you received?

Citizens’ depopulation mailings (Citizens calls the packet a “Depopulation Offer” or “Policyholder Choice Offer”) follow a fairly consistent structure. The packet opens with an explanation of why you’re receiving it: that Citizens is required to offer eligible policies to private-market carriers when those carriers want to assume them. It then states your eligibility status: whether you’ve received one offer or several, and whether any offer is close enough to your current Citizens premium that you are no longer permitted to remain with Citizens (the “20% rule,” explained below). After that, the letter lays out your options as numbered scenarios: what happens if you do nothing, what happens if you actively choose a company, and, for policyholders still eligible to remain, what happens if you elect to stay with Citizens.

The rest of the packet is mostly reference material: a comparison worksheet listing each participating company’s estimated renewal premium side by side with your current Citizens premium, notes on billing and any open claims during the transition, a reminder about Citizens’ emergency assessment/surcharge exposure and separate flood insurance needs, and a Policyholder Depopulation Offer Form. That form carries your policy number and a registration code, which is what you or your agent uses to submit your choice online or by phone. Commercial nonresidential policyholders receive a simplified version of the letter, since those policies cannot elect to remain with Citizens; they must either accept an assumption offer or replace coverage elsewhere.

Who decides which policies are selected, and what does the timeline look like?

Policyholders don’t choose to enter the program, and Citizens doesn’t pick recipients one by one. Instead, a private insurer that wants to grow in Florida applies to the state’s Office of Insurance Regulation (OIR) for approval to assume a block of Citizens policies. To qualify, the company must hold a Certificate of Authority to sell property insurance in Florida and show it has the financial resources and a viable business plan to pay claims on the policies it wants to take on. Within that approved pool, the takeout company, not the policyholder or, typically, the agent, selects which specific Citizens policies it wants, generally based on location, coverage type, and how the risk fits its own underwriting appetite.

Once OIR approves a company for a batch of assumptions, Citizens sends affected policyholders an offer packet ahead of their policy’s renewal date. Every letter is personalized, so the exact calendar dates are printed on your own copy rather than fixed on a schedule that applies to everyone. In general, the packet references three points in time: a deadline for registering your choice, the date your new (or continued) coverage takes effect, and an assumption/non-renewal date marking when Citizens stops being your insurer. If you’re accepting an assumption, the new carrier is also required to get its own policy documents and disclosures to you well before that effective date — Citizens’ materials describe this as happening roughly a month and a half ahead of the change, though the exact number of days on your own letter controls.

Missing the choice deadline does not cancel your coverage. If you have more than one offer and don’t register a choice in time, Citizens assigns you to whichever participating company offered the lowest estimated renewal premium. If you have only one offer, no action is required at all; the assumption happens automatically on the date stated in the letter.

What choices do you have — accept, opt out, or shop independently?

In practice there are three paths. First, you can accept the takeout offer and do nothing further — the policy transfers automatically at renewal, and your current agent typically continues to service it day to day. Second, where the 20% threshold gives you the option, you can affirmatively choose to remain with Citizens by submitting your choice before the deadline; missing that deadline forfeits the option even if you were eligible for it. Third, you can decline the specific takeout offer and shop the private market independently through an agent, rather than accepting the carrier Citizens lined up or defaulting back to Citizens.

If your letter says you’re not eligible to remain with Citizens (because an offer came in within the 20% threshold), there is no “stay with Citizens” option on that letter — your choice is which private offer to accept, not whether to leave. Commercial nonresidential policyholders never have a “remain with Citizens” option on a depopulation letter; they must either accept an assumption offer or replace coverage elsewhere.

One change worth knowing if you’ve heard older advice: Citizens previously allowed a window after an assumption took effect to reverse course and return to Citizens. That standalone post-assumption return period no longer applies. Once an assumption is complete, the change is final for that policy term, and returning to Citizens later generally requires you to separately qualify under Citizens’ own eligibility rules at a future renewal, such as no comparable private offer being available within the 20% threshold.

What is worth comparing and asking before the deadline?

Before your deadline, it’s worth getting specific answers rather than acting on the letter alone. Confirm the quoted premium is final or still an estimate — takeout packets quote estimated premiums, and your actual bill is set using the new carrier’s own OIR-approved rates once the policy is underwritten. Ask your agent whether the new company’s coverage terms, deductibles, and any endorsements (like scheduled personal property or additional structures) match what you have with Citizens, since “comparable coverage” for purposes of the 20% test doesn’t guarantee identical policy language. Look specifically at roof coverage and depreciation schedules and water damage sublimits, since a lower headline premium can come with a narrower policy.

Ask how claims will be handled during the transition — generally, any claim from before the assumption date stays with Citizens and your existing agent, while anything after the assumption date goes to the new carrier. Confirm whether flood coverage is bundled or separate either way: most Citizens multiperil policies exclude flood, and a depopulation offer moving you to a private carrier doesn’t automatically change that. If your home currently carries Citizens’ flood insurance requirement, ask whether the private carrier has the same requirement, since that mandate is being phased in for Citizens policies but doesn’t automatically carry over to every private insurer.

It’s also worth weighing what staying with Citizens (where you’re eligible) would cost long-term: Citizens policyholders remain exposed to potential emergency assessments if the corporation needs to cover a deficit after a bad storm season, a cost that isn’t reflected in the quoted premium itself. Finally, ask what happens if you take no action at all — as noted above, silence is treated as acceptance of the lowest-premium qualifying offer, not a decision to stay with Citizens.

How do you verify the offering carrier is legitimate and financially sound?

Because the whole point of depopulation is moving your policy to a private company that will actually be there to pay a claim, it’s worth checking that company’s footing before your deadline rather than after a storm. Most Florida-focused property insurers carry a Financial Stability Rating from Demotech rather than one of the large national rating agencies, and an FSR of A or better is generally the threshold accepted by mortgage investors like Fannie Mae, Freddie Mac, and HUD. Some carriers instead carry a rating from AM Best, which can also be looked up directly through that agency. A rating alone isn’t a guarantee — a number of Florida insurers that were rated A at the time have since become insolvent — so it’s reasonable to also ask an agent about the company’s policy surplus, how long it has written business in Florida, its reinsurance program, and its complaint history with OIR.

Separately, confirm the company is currently licensed and in good standing. Citizens maintains its own list of active take-out companies on citizensfla.com’s depopulation resources page, a reasonable first stop. You can independently verify any insurer is actually licensed to write property coverage in Florida through the state’s Active Company Search tool, run by the Florida Department of Financial Services / Office of Insurance Regulation at companysearch.myfloridacfo.gov, or through OIR’s public company search tool — both show a company’s licensing status and lines of authority and are useful cross-checks before you register a choice. It’s also worth checking our own carrier directory (linked below) for background on the company named in your letter before you commit to an assumption offer.

Who can you ask if the letter or process is unclear?

If you have an agent of record on the policy, they’re typically the fastest path to a plain-language explanation of your specific letter, and can submit your choice on your behalf. If you don’t have an agent, or your agent isn’t reachable, Citizens’ own consumer service line (“Citizens First”) and its searchable FAQ system are set up to answer depopulation-specific questions, including how to read your registration code and how to submit a choice online. For questions about whether a company is actually licensed to operate in Florida, or to file a complaint about how an offer was presented to you, the Florida Department of Financial Services / Office of Insurance Regulation is the regulatory contact, separate from Citizens itself.

Which carriers are currently part of the Citizens takeout program?

Nine of the directory’s 18 carriers are shown as active takeout participants in Citizens’ depopulation program: American Integrity, Edison Insurance, Florida Peninsula, Manatee Insurance Exchange, Monarch National, People’s Trust, Safepoint, Security First, and Slide Insurance. Two more — Homeowners Choice and Patriot Select P&C — participate in depopulation as well. If a company approaches you that isn’t on this list, that doesn’t necessarily mean it’s not a legitimate take-out carrier — verify it directly using the tools in the section above rather than relying on this list alone.

Note: This comparison reflects the directory’s original 18 carriers. The 10 carriers added since have not yet been individually reviewed for this specific factor — check each newer carrier’s own profile for the latest available information.

Which Carriers in Our Directory Participate in Citizens Depopulation?

The carriers below have participated in Citizens’ takeout or depopulation program. This reflects program participation, not a guarantee that a specific carrier will offer to assume any individual policy — confirm current takeout activity directly with Citizens or the carrier.