What Citizens is

Citizens is a not-for-profit entity created by the State of Florida, not a private insurance company. It exists to provide homeowners coverage to Florida residents who cannot find it in the private market, at a rate set by state-approved rating rules rather than ordinary market competition. It’s meant to be a backstop, not the cheapest option when private coverage is available.

Eligibility: the private-market test

You generally qualify for a new Citizens policy, or to renew one, only if you can’t find comparable coverage in the private market at a reasonable price. At application, you typically need to show that private carriers either declined your home or quoted significantly higher than Citizens. At renewal, Citizens and the state’s clearinghouse check whether a private carrier now offers comparable coverage.

Depopulation & the takeout process

“Depopulation” is the state’s ongoing effort to move policies out of Citizens and into the private market. It happens two main ways: assumption/takeout offers, where an approved private carrier offers to assume blocks of existing Citizens policies at renewal; and the clearinghouse check, which screens new and renewing policyholders against private carrier offers.

If your policy is selected for a takeout offer, you’ll receive a notice by mail. You generally have the right to decline a specific offer and remain with Citizens for that cycle, but declining one offer doesn’t permanently exempt you from the process.

The 20% rule, explained

Florida’s depopulation framework generally treats a private offer as “comparable” to Citizens — and therefore something you can be required to accept — if the private premium is not more than roughly 20% higher than what you’d pay Citizens. The exact threshold and how it’s applied have been adjusted by the legislature over time, so treat “20%” as the general shape of the rule rather than a number to rely on for a specific decision.

Verify before deciding: because these thresholds are set by state law and change with legislation, confirm the current rule directly with Citizens (citizensfla.com) or your agent before assuming how it applies to your policy.