Citizens Property Insurance Corporation is Florida's state-created insurer of last resort. If you're on Citizens, it means no private carrier was willing to insure your home at the time you applied — or more likely, you were placed on Citizens after your previous carrier left the market. As of 2026, Citizens covers approximately 395,000 Florida homes — down 50% from its peak of nearly 1.4 million. That decline is good news: it means private carriers are returning and options are improving.
What Is Citizens Property Insurance?
Citizens was created by the Florida legislature in 2002 as a combination of two older state insurance programs. It's designed to provide coverage to homeowners who cannot find insurance in the private market — the "insurer of last resort."
Key facts about Citizens:
- Not a state agency. Citizens is a state-created, not-for-profit entity. It's not part of the state government, but it's subject to legislative oversight.
- Funded by premiums and assessments. Citizens doesn't receive tax dollars. It's funded by policyholder premiums. If it runs a deficit after a catastrophic hurricane, it can assess surcharges on ALL Florida insurance policyholders — not just Citizens customers.
- Rate-capped. Citizens rates cannot exceed the highest rate charged by private carriers in each county. This means Citizens is sometimes cheaper than private alternatives — but it also means Citizens rates don't fully reflect risk in the highest-exposure areas.
- Depopulation mandate. Florida law requires Citizens to actively reduce its policy count by encouraging private carriers to "take out" Citizens policies. When a private carrier offers comparable coverage at a rate within 20% of Citizens, policyholders may be transitioned to the private carrier.
Why You Might Be on Citizens
The most common reasons Florida homeowners end up on Citizens:
- Your previous carrier went insolvent or left Florida. Between 2020 and 2023, over 30 carriers either went bankrupt or exited the state. Hundreds of thousands of homeowners were displaced into Citizens.
- No private carrier will write your property. Older roofs, high-risk coastal locations, prior claims history, or unique construction types can make homes uninsurable on the private market.
- You didn't shop alternatives. Some homeowners went to Citizens during the crisis years and haven't re-shopped since. The market has changed significantly — many now qualify for private coverage they couldn't get 2 years ago.
Want a licensed agent to review your specific situation? Free, no obligation.
Get Your Free Review →The Problem with Staying on Citizens
Citizens provides essential coverage and has fulfilled its mission during the insurance crisis. But there are reasons to explore alternatives:
- Assessment risk. If Citizens runs a deficit after a major hurricane, ALL Florida policyholders — including those with private carriers — can be assessed a surcharge. The larger Citizens' policy base, the larger the potential assessment for everyone.
- Coverage limitations. Citizens coverage caps are lower than many private carriers. For higher-value homes, this can leave gaps.
- No rate competition. Citizens rates are set by formula. Private carriers compete for business, which means you may find better rates or coverage in the private market.
- Depopulation transitions. If a private carrier makes a take-out offer, you may be transitioned automatically unless you opt out. Understanding your options proactively is better than being transitioned reactively.
How to Find Private Alternatives to Citizens
- Contact an independent agent. An independent agent can compare 10+ carriers and may find private coverage you didn't know was available. The market has improved dramatically — Citizens' policy count dropped 50% because private carriers are returning.
- Get a wind mitigation inspection. Many carriers that won't quote a home without wind mitigation will quote it with one. A $100 inspection can open doors that were previously closed.
- Update your roof if it's over 15 years old. Roof age is the number one barrier to private market coverage. A new roof often unlocks 5+ carrier options that were previously unavailable.
- Check depopulation offers carefully. If a private carrier offers to take over your Citizens policy, review the coverage and pricing. By law, the take-out carrier must match Citizens coverage at no more than 20% above Citizens' rate. Many offer comparable or better pricing.
- Re-shop annually. The Florida insurance market is changing rapidly. A carrier that wouldn't write your home last year may be writing it this year.
Citizens Rate Changes in 2026
Citizens has approved an average 8.7% rate decrease statewide for 2026 — the first broad rate relief in years. Some counties are seeing larger reductions:
- Broward County: 17% average reduction
- Miami-Dade County: 14% average reduction
- Palm Beach County: 12% average reduction
- Monroe County: 11.3% reduction for homeowners, plus reductions on 8,000+ wind-only policies
Even with these reductions, Citizens rates remain among the highest in many counties. Private carriers have also been filing rate decreases — some matching or beating Citizens' new rates. An independent agent can compare current Citizens pricing to private market alternatives.