Florida Homeowners Guide · Citizens Insurance

Citizens Insurance in Florida: who qualifies, what it costs and when to leave

Citizens Property Insurance Corporation is Florida’s insurer of last resort. It is a real safety net when the private market says no, but it comes with eligibility rules, a flood requirement and surcharge risk that every policyholder should understand.

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Written and reviewed by licensed Florida insurance advisors at Allied Insurance Group · Updated October 2026

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Executive summary

The short version

Citizens is a not-for-profit insurer created by the Florida Legislature for property owners who cannot find coverage in the private market. You generally qualify only if no authorized private insurer will cover the home, or if the private offers cost more than 20 percent above a comparable Citizens premium.

Staying is not guaranteed. If a private insurer offers to take over your policy at a premium within 20 percent of your Citizens renewal, you are generally no longer eligible to renew with Citizens. Citizens policyholders must also carry flood insurance on a phased schedule, and can be charged a surcharge if Citizens runs a deficit after a major storm.

  • Citizens is a last resort by design, not a first choice.
  • The 20 percent rule applies both when you apply and when you renew.
  • A takeout offer within 20 percent of your Citizens renewal generally ends your eligibility to stay.
  • Flood coverage is required for Citizens policies that include wind; the final phase begins January 1, 2027.
  • Have an independent agent re-check the private market every year before renewal.

What is Citizens Property Insurance?

Short answer: Citizens is a state-created, not-for-profit insurer that covers Florida properties the private market will not, or will not at a comparable price.

Citizens was created by the Florida Legislature in 2002 and operates under section 627.351(6), Florida Statutes. It is not a private company and it is not funded by tax dollars in the ordinary course; it pays claims from premiums, reserves and reinsurance. If those are not enough after a severe storm season, Florida law requires Citizens to collect surcharges and assessments to cover the shortfall.

You buy a Citizens policy through a licensed agent who is appointed with Citizens, such as Allied. The agent is required to check the private market first.

Who qualifies: the 20 percent rule

Short answer: You are eligible for Citizens when no authorized private insurer offers coverage, or when the private premium is more than 20 percent higher than Citizens for comparable coverage.

Situation Eligible for Citizens? Why
No private insurer will offer coverage Yes Citizens exists for exactly this case.
Private offer is more than 20% above the Citizens premium Yes The private offer is outside the eligibility threshold.
Private offer is within 20% of the Citizens premium No A comparable private offer is available.
Renewal, and a private insurer offers within 20% of your Citizens renewal premium Generally no The same threshold applies at renewal for primary residences.

The comparison is made on comparable coverage. Stricter rules apply to properties that are not a primary residence.

Illustration: the 20 percent test on a $4,000 Citizens premium

Citizens premium$4,000
Private offer at $4,60015% higher: not eligible for Citizens
Private offer at $5,20030% higher: eligible for Citizens

Example arithmetic only. Actual eligibility is determined through Citizens’ clearinghouse and current rules.

Citizens also has property eligibility limits, including a maximum dwelling replacement cost that is higher in counties where the state has found the private market lacks capacity, plus roof and inspection requirements. These limits are updated periodically, so we check the current rules for your address rather than rely on last year’s.

Takeout offers and depopulation

Short answer: A takeout offer is a private insurer’s offer to assume your Citizens policy. If the offer is within 20 percent of your Citizens renewal premium, you generally cannot choose to stay.

The Florida Office of Insurance Regulation approves private companies to take policies out of Citizens. This is called depopulation. If your policy is selected, you receive a notice of the assumption offer with the private company’s name, its estimated renewal premium and your Citizens renewal premium.

What to do when a takeout letter arrives

Do not ignore itThe letter has a response deadline and a default outcome if you do nothing.
Compare the premiumsIs the offer within 20 percent of your Citizens renewal? That decides whether you may stay.
Compare the coverageDeductibles, roof settlement, water damage limits and other endorsements can differ.
Check the companyLook at the insurer’s financial strength rating and how long it has written in Florida.
Ask for other optionsAn independent agent can check whether a different private carrier is a better fit.
A takeout is not always the best private option

The company that selected your policy is one of several that may want it. Before you accept, ask us to compare it with the other carriers we work with.

The Citizens flood insurance requirement

Short answer: Citizens personal residential policies that include wind coverage must carry flood insurance, phased in by dwelling replacement cost through January 1, 2027.

The requirement came from Senate Bill 2A in 2022. Properties in a Special Flood Hazard Area came first. For everyone else, the requirement phases in by the dwelling replacement cost shown on the policy:

Effective date Who must carry flood coverage
April 1, 2023 (new policies) and July 1, 2023 (renewals) Properties in a Special Flood Hazard Area
January 1, 2024 Dwelling replacement cost of $600,000 or more
January 1, 2025 Dwelling replacement cost of $500,000 or more
January 1, 2026 Dwelling replacement cost of $400,000 or more
January 1, 2027 All remaining personal residential policies that include wind

Source: section 627.351(6)(aa), Florida Statutes. Policies that do not include wind coverage and condominium unit-owner policies are treated differently.

The flood coverage can come from the National Flood Insurance Program or a private flood insurer that meets the statutory standard. See our Florida flood insurance guide for how the two compare, or request a flood quote.

Surcharges and assessments

Short answer: If Citizens runs a deficit after a storm, its policyholders pay first: a surcharge of up to 15 percent of premium, according to Citizens.

Citizens explains the order this way. The Citizens Policyholder Surcharge is applied first and can be up to 15 percent of the annual premium. If a deficit remains, an emergency assessment of up to 10 percent per year can be applied to most Florida property and casualty policies, including Citizens policies and policies with private insurers, for as many years as needed.

That is the main financial difference between Citizens and a private carrier: with Citizens, your cost after a bad season is not capped at the premium on your declarations page.

Citizens vs. private insurance

Short answer: Citizens can be the right answer when it is the only answer. When a comparable private policy is available, it is usually the more stable choice.

Citizens Private carrier
Who can buy it Only those who meet the eligibility rules Anyone who meets the carrier’s underwriting guidelines
Staying long term Eligibility is re-tested; takeouts can move your policy Renewal depends on the carrier’s guidelines and appetite
Flood insurance Required on policies that include wind, on the phased schedule Not required by the carrier, though a lender may require it
Cost after a major storm Policyholder surcharge of up to 15% of premium, then emergency assessments Emergency assessments only
Coverage options Standardized forms with fewer optional coverages Varies by carrier; often more endorsements available

General comparison. Specific forms, limits and options change; we confirm current terms when we quote.

How to move from Citizens to a private carrier

Short answer: Make the home as insurable as possible, document it, and have the private market checked before each renewal.

  • Get a current wind mitigation report and send it to your agent
  • Keep a recent four-point inspection on file if the home is older
  • Know your roof age and have the permit ready
  • Fix the issues an inspection flagged, such as an old water heater or electrical panel
  • Ask your agent to re-shop 45 to 60 days before renewal
  • Compare coverage, not just premium, before you switch

Questions Florida homeowners ask us

Frequently asked questions

Citizens Property Insurance Corporation is a not-for-profit insurer created by the Florida Legislature in 2002 to cover properties that cannot get coverage in the private market.

It is a state-created, not-for-profit corporation governed by Florida law and a board of governors. It is not a private company and it is not a state agency in the usual sense.

Property owners who cannot get an offer from an authorized private insurer, or whose private offers are more than 20 percent higher than a comparable Citizens premium, and whose property meets Citizens’ underwriting rules.

If a private insurer offers comparable coverage at a premium no more than 20 percent above the Citizens premium, you are not eligible for Citizens. The rule applies to new applications and to renewals.

Generally only if the takeout company’s premium is more than 20 percent above your Citizens renewal premium. If it is within 20 percent, you are generally no longer eligible to renew with Citizens.

The notice explains the default outcome and the deadline. In many cases the policy is assumed by the private company if you do not respond. Read the notice and call your agent before the deadline.

Sometimes, but not by design. Citizens is meant to be a last resort, and its rates are required by law to move toward actuarially sound levels. Surcharge risk should be part of the comparison.

Yes, if your Citizens policy includes wind coverage, on a phased schedule based on dwelling replacement cost. The last phase, covering all remaining personal residential policies with wind, takes effect January 1, 2027.

Yes. After the phase-in, it applies to Citizens personal residential policies that include wind regardless of flood zone.

Condominium unit-owner policies are treated differently under the statute. Ask us to confirm how the rule applies to your unit.

According to Citizens, it is a charge of up to 15 percent of the annual premium that Citizens must collect from its policyholders if it does not have enough money to pay claims after a storm or series of storms.

Yes. If a deficit remains after the policyholder surcharge, an emergency assessment of up to 10 percent per year can apply to most Florida property and casualty policies, including policies with private insurers.

Yes, when the policy includes wind coverage. Citizens policies carry a hurricane deductible like private policies. See the hurricane deductible guide.

Citizens requires inspections for many older homes and uses its own inspection form. We confirm the current requirement for your home when we quote.

Citizens has its own roof eligibility and documentation requirements, and they change over time. See roof age and insurance and ask us to check current rules.

Yes. Citizens sets a maximum dwelling replacement cost for eligibility, with a higher limit in counties where the state has determined the private market lacks capacity. We verify the current limit for your county.

The rules are stricter. A property that is not a primary residence is generally ineligible if any authorized private insurer offers coverage, regardless of price.

Through a licensed agent appointed with Citizens. The agent first submits the home to check for private offers, then applies to Citizens if you are eligible.

Every year, ideally 45 to 60 days before your Citizens renewal. Private carriers’ appetites change, and a home that had no offers last year may have several this year.

A newer roof, a current wind mitigation report, a clean four-point inspection and updated plumbing and electrical systems.

Not necessarily. Private policies often offer more optional coverages. The key is to compare deductibles, roof settlement terms and water damage coverage line by line.

Yes. We write Citizens policies when they are the right fit and compare private alternatives from multiple A-rated carriers. Start with a home quote or send your Citizens declarations page for a policy review.

Keep reading

Related Florida homeowners guides

Florida Homeowners Insurance GuideFlorida Homeowners Insurance GuideHow coverage, pricing and underwriting work in Florida.Florida Flood Insurance GuideFlorida Flood Insurance GuideWhy home policies exclude flood and how to cover it.Roof Age & Insurance in FloridaRoof Age & Insurance in FloridaThe 15-year rule, inspections and roof settlements.Four-Point Inspection GuideFour-Point Inspection GuideRoof, electrical, plumbing and HVAC: what insurers check.

Looking for something else? Visit the Allied Answer Desk, browse Florida insurance by city, or go back to the Florida Homeowners Insurance Guide.

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With Citizens, or holding a takeout letter? Let us compare before you decide.

Send us your Citizens declarations page or takeout notice. A licensed Allied advisor will compare it with the private options available for your home.

Or call (954) 475-8886

This guide is general information for Florida homeowners, not legal advice and not a statement of coverage. Coverage, eligibility, deductibles and pricing depend on the insurer, the policy form and your property. Laws, Citizens rules and carrier guidelines change; confirm current details with a licensed advisor and read your policy. Allied Insurance Group, 6600 Taft Street #100, Hollywood, FL 33024 · (954) 475-8886.

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