Citizens insurance in Florida

Citizens Insurance in one place: how it works, whether you qualify, what it covers, and what it could cost.

What Is Citizens Property Insurance Corporation, and Who Runs It?

Citizens is a not-for-profit entity created by the State of Florida. It is 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 rules rather than ordinary market competition. It’s meant to be a backstop, not the cheapest option when private coverage is available.

Citizens is directed by its own Board of Governors and is overseen at the state level by the Florida Office of Insurance Regulation, with its structure and rules set out in Florida Statutes. That state oversight is part of why Citizens operates differently from a private carrier: its rates, eligibility rules, and depopulation process are set through a public, statutory process rather than ordinary corporate underwriting.

Why Does Florida Have an Insurer of Last Resort at All?

Florida’s private homeowners insurance market has periodically contracted after major hurricane seasons, as some carriers reduced how much business they wrote in the state, stopped writing new policies in certain areas, or became insolvent altogether. When that happens, homeowners who did nothing wrong can still end up unable to find any private carrier willing to write their home, and most mortgage lenders require continuous insurance coverage.

Citizens exists to close that gap: by law, it must offer a policy to any eligible Florida homeowner who cannot find comparable private coverage, so that going without insurance is never the only option. That guarantee is also why Citizens’ rules are written to encourage homeowners back into the private market once it stabilizes, rather than to compete with it long-term.

How Do You Qualify for a Citizens Policy?

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.

That means most homeowners end up with a Citizens policy one of two ways: applying directly because no private carrier will write the home at a reasonable price, or being left without an incumbent private option after a nonrenewal or a carrier’s exit from the area, with Citizens as the remaining path, since it must accept every eligible applicant. See the Citizens eligibility guide for the specific rules.

How Does Depopulation and the Takeout Process Work?

“Depopulation” is the state’s ongoing effort to move policies out of Citizens and into the private market. It happens two main ways. With assumption/takeout offers, an approved private carrier offers to assume blocks of existing Citizens policies at renewal. With the clearinghouse check, the state 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. See the takeout program guide and the depopulation letter guide for what the actual notice says and how to respond.

What Is the 20% Rule?

Florida’s depopulation framework generally treats a private offer as “comparable” to Citizens if the private premium is not more than roughly 20% higher than what you’d pay Citizens. If an offer counts as comparable, you can be required to accept it. The legislature has adjusted this exact threshold over time, so treat “20%” as the general shape of the rule, not 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.

Citizens Flood Requirement

Many Citizens policies that include wind coverage must also carry qualifying flood insurance. The rule already applies to homes in FEMA flood zones and is phasing in by dwelling value for other homes, reaching all remaining wind-coverage policies by January 1, 2027. A Citizens homeowners policy does not cover flood damage; that takes a separate NFIP or private flood policy. Confirm the current rule with Citizens before relying on it.

What Happens If Citizens Runs Short After a Storm?

Citizens can recoup a catastrophic shortfall through a layered assessment structure. That structure includes a policyholder surcharge, a regular assessment on other insurers, and a broader emergency assessment that can reach nearly every property/casualty policyholder in the state, Citizens customer or not. See the Citizens assessments guide for how each tier works.