What is Citizens Property Insurance?
Citizens is a state created, not for profit insurer. It’s meant to be a last resort for Florida homeowners who can’t get coverage from a private company. Many Floridians ended up with Citizens when private insurers pulled back, but the private market has been adding options again.
Who is eligible for Citizens?
You can only get or keep a Citizens homeowners policy if one of these is true:
- No private insurer will offer you coverage, or
- Private offers are more than 20% higher than the Citizens premium for comparable coverage.
This is often called the 20% rule. For new policies, agents have to check private offers through Citizens’ clearinghouse first. At renewal, Citizens policies are shopped again, and if a private offer comes in within 20% of your Citizens renewal premium, Citizens won’t renew your policy.
What is a takeout offer?
Citizens works with private insurers approved by the state to take over policies. This is called depopulation, and the offer is often called a takeout offer. If you’re selected, you’ll get a letter with the details and a deadline.
- If the private offer is within 20% of your Citizens renewal premium, you can’t stay with Citizens.
- If it’s more than 20% higher, you can choose to stay, but you have to actively respond by the deadline. If you don’t, your policy is transferred.
- If your policy is transferred, your premium and coverage stay the same until the policy term ends. At renewal, the 20% rule applies again.
Read these letters carefully, and call your agent before the deadline if you’re unsure.
Why move to a private insurer?
- Broader coverage: private policies often include coverage that Citizens policies don’t.
- Assessments: if Citizens ever can’t pay all its claims after a major storm, its policyholders can face assessments that private customers don’t.
- Price: private offers are increasingly priced at or below Citizens.
How to find an alternative
An independent agent is the simplest route, because we can quote multiple private carriers at once instead of just one. Have your current policy’s declarations page handy, along with any wind mitigation or four point reports, since they can open up more options and better pricing.
How Marshall Insurance Group can help
We compare private carriers against your Citizens policy side by side, so you can see the price and the coverage differences before you decide. If you’ve received a takeout letter, send it to us and we’ll help you understand your choices before the deadline.
Common questions
Can I stay with Citizens if I get a private offer?
Only if the private offer is more than 20% higher than your Citizens premium for comparable coverage. This is Florida's 20% rule. If the offer is within 20%, you're no longer eligible and Citizens won't renew your policy. If a takeout offer is more than 20% higher and you want to stay, you must respond by the deadline in the letter, or your policy is transferred.
What is a Citizens takeout or depopulation offer?
A takeout offer is when a private insurer approved by the state offers to take over your Citizens policy, a process called depopulation. You'll get a letter with the details and a deadline, and if you don't respond, your policy is transferred. Your premium and coverage stay the same until the policy term ends, then the 20% rule applies again at renewal.
Why would I leave Citizens if it's cheaper?
Private insurers often include coverage that Citizens policies don't, and private offers are increasingly priced at or below Citizens. Citizens policyholders can also face assessments if Citizens can't pay all its claims after a major storm, which private customers don't. An independent agent can compare price and coverage side by side before you decide.
Can I go back to Citizens later?
Only if you become eligible again, meaning no private insurer will offer you coverage or private offers are more than 20% higher than Citizens for comparable coverage. New Citizens policies go through the state's clearinghouse, which checks private offers first.