Understanding Citizens Property Insurance in Florida

Citizens Property Insurance Corporation is Florida's state-backed insurer of last resort. Created to provide coverage when private carriers won't, Citizens has grown to become one of the largest home insurers in Florida — a sign of the challenges facing the private market.

What Is Citizens Property Insurance?

Citizens is a not-for-profit, tax-exempt government entity created by the Florida Legislature. It provides homeowners, condo, and commercial residential insurance to property owners who cannot find coverage in the private market at a reasonable price.

Citizens is backed by Florida policyholders — if Citizens doesn't have enough reserves to pay claims after a major storm, it can levy assessments on all Florida insurance policyholders, not just Citizens customers.

Limitations of Citizens Insurance

While Citizens provides an important safety net, it has several limitations compared to private carriers:

Coverage limits: Citizens has maximum coverage limits that may not be sufficient for high-value properties
Rate increases: Citizens rates have been increasing and are expected to continue rising as the state works to reduce its exposure
Depopulation program: Citizens actively works to move policies to private carriers through its depopulation program — you may receive a notice that your policy is being transferred
Coverage restrictions: Citizens may have more restrictive coverage terms than private alternatives
Assessment risk: As a Citizens policyholder, you could be assessed additional charges if Citizens experiences major losses

Citizens Alternatives: Private Market Options

The Florida private insurance market has been evolving, and there are more options available than many homeowners realize:

Admitted Carriers

Several Florida-focused admitted carriers continue to write policies in most of the state. These carriers are regulated by the Florida Office of Insurance Regulation and participate in the Florida Insurance Guaranty Association (FIGA), which provides protection if a carrier becomes insolvent.

Surplus Lines Carriers

Surplus lines carriers are not admitted in Florida but are licensed to write policies here. They operate with more flexibility than admitted carriers and can often write policies that admitted carriers won't. They do not participate in FIGA, so it's important to verify their financial strength.

The Citizens Depopulation Program

Florida has been actively working to reduce Citizens' policy count through its depopulation program. Private carriers can offer to take over Citizens policies, and if the offer is within a certain percentage of the Citizens rate, policyholders may be required to accept the private coverage.

If you receive a depopulation offer, review it carefully with your agent before accepting or rejecting it. The private carrier may offer better coverage terms, and staying with Citizens may not always be the right choice.

How to Find Citizens Alternatives

The best way to find private market alternatives to Citizens is to work with an independent insurance agent who has access to multiple carriers. They can identify which carriers are writing policies in your area, compare coverage and pricing, and help you make an informed decision about whether to stay with Citizens or move to a private carrier.

Citizens Insurance Alternatives: What Florida Homeowners Should Know