If you own property in Florida, you've probably heard about Citizens Property Insurance Corporation. Maybe your insurance agent mentioned it when you couldn't find coverage elsewhere, or perhaps a neighbor complained about being moved from Citizens to a private insurer. Here's what you need to know: Citizens isn't just another insurance company. It's Florida's insurer of last resort, created by the state legislature to provide coverage when the private market won't. And while that safety net has been a lifeline for hundreds of thousands of Florida homeowners, it comes with some unique quirks and risks you should understand before signing up.
What Is Citizens Property Insurance?
Citizens Property Insurance Corporation is a not-for-profit, government-created entity that provides property insurance to Florida homeowners and businesses when they can't get it from private insurers. Think of it as the insurance market's backup plan. Created in 2002 by combining two earlier state programs, Citizens exists to fill gaps in coverage availability, particularly in coastal areas and other high-risk regions where private insurers have pulled back.
But here's the thing that surprises most people: Citizens isn't meant to be your permanent insurance solution. Florida law actually requires Citizens to actively move policies back to the private market whenever possible. This depopulation effort means your Citizens policy could be transferred to another insurer during your policy period, often without much warning. It's all part of the plan to keep Citizens as small as possible and reduce risk for all Florida taxpayers.
Who Can Get Coverage Through Citizens?
You can't just choose Citizens because you like their rates or prefer dealing with a state-run insurer. The eligibility rules are strict, and they got even stricter in recent years. Citizens can only write you a new policy if you meet one of two conditions: either coverage isn't available from any private Florida-authorized insurance company, or the premiums from private insurers are more than 20% higher than what Citizens would charge for comparable coverage.
There are also hard limits on coverage amounts. In most of Florida, Citizens won't insure homes with a dwelling replacement cost of $700,000 or more. If you're in Miami-Dade or Monroe counties, that limit jumps to $1 million. These caps mean that if you own a higher-value property, you'll need to piece together coverage from other sources, potentially through surplus lines insurers or by self-insuring part of the risk.
Starting in 2023, Florida also began requiring flood insurance for most Citizens policyholders with wind coverage. If your home is in a designated flood zone, you'll need to carry flood insurance to maintain eligibility. This requirement has been phased in over time, and by now, most residential policyholders must have it. Your property also needs to pass structural eligibility requirements. Buildings deemed unsafe by inspections, structures with substantial unrepaired deficiencies, or properties that haven't complied with required inspections won't qualify for coverage.
Coverage Options and What They Actually Mean
Citizens offers both multiperil coverage and wind-only policies. Multiperil coverage works like a standard homeowners policy, protecting you against fire, theft, vandalism, and windstorm damage. Wind-only policies do exactly what the name suggests: they only cover wind damage, which is particularly important in Florida where hurricanes are a constant threat. If you have a wind-only policy, you'll need separate coverage for all the other perils that might damage your home.
One important note: Citizens stopped offering new commercial residential multiperil policies, though they continue to provide commercial residential wind-only coverage. For homeowners, both options remain available depending on your needs and what other coverage you might have in place.
The Hidden Risk: Assessments and Surcharges
Here's where Citizens gets complicated, and frankly, a bit scary. If a major hurricane causes losses that exceed Citizens' reserves and reinsurance, the company can levy assessments and surcharges to make up the difference. This is sometimes called the "hurricane tax," and it's not just a theoretical concern. It's written right into your policy.
As of 2024, when Citizens consolidated its three separate accounts into one, the assessment structure changed. First comes the Citizens Policyholder Surcharge, which can be up to 15% of your annual premium. This only affects Citizens policyholders. If that's not enough to cover the deficit, Citizens can levy an emergency assessment of up to 10% per year. This means you could potentially face up to a 25% surcharge on top of your regular premium after a catastrophic event.
But wait, there's more. Emergency assessments don't just hit Citizens policyholders. They can be charged on nearly every type of property and casualty insurance policy in Florida, including homeowners, renters, auto, boat, and even pet insurance. So even if you're not a Citizens customer, you could still end up paying assessments if Citizens faces a major shortfall. It's a shared-risk system designed to protect Florida's insurance market, but it means everyone has skin in the game.
What You'll Pay: Rates and Recent Changes
Citizens rates have been on a roller coaster in recent years. In 2024, rate increases for primary residences were capped at 13% under a "glide path" policy designed to gradually bring Citizens' rates closer to actuarial soundness without shocking policyholders. The good news is that 2025 brought relief for many customers: Citizens reduced rates by an average of 5.6% statewide.
However, that statewide average masks significant variation. For primary residences, rate changes in 2025 range from a 10% decrease to a 14% increase depending on your territory and underwriting factors. Geography matters a lot: 75% of Miami-Dade County homeowners saw rate reductions, along with half of Broward County homeowners, but only 19% of Palm Beach County homeowners got cuts. If your property isn't your primary residence, the situation is even more variable, with rate changes ranging from 0% to a whopping 50% increase.
The Depopulation Program: When Your Policy Gets Transferred
Florida law requires Citizens to actively reduce its policy count by moving coverage back to the private market. This happens through the depopulation program, sometimes called a "takeout." Approved private insurance companies can assume your Citizens policy at any time during your policy period. You don't initiate this process; the insurance companies do.
When selected for a takeout, you'll receive documents from both Citizens and your new insurer explaining the transition. If a private insurer offers coverage within 20% of your Citizens renewal premium, you're no longer eligible to stay with Citizens after your current policy expires. You'll have to accept the new coverage or find another option. The idea is sound: get policies back into the private market to reduce Citizens' exposure and the risk of massive assessments. But for policyholders, it can feel disruptive, especially if you were comfortable with your Citizens coverage.
If you receive a takeout notice, talk to your insurance agent. They understand the depopulation program and can help you evaluate whether the new policy is truly comparable and whether you have other options. Don't ignore these notices; if you don't respond during the designated timeframe, the transfer will happen automatically.
How to Get Started with Citizens
If you think you need Citizens coverage, start by working with an independent insurance agent who can verify your eligibility. They'll help you document that you can't find private coverage or that private options cost more than 20% above Citizens' rates. You can also visit the Citizens website directly to learn more about the application process and find contact information for their customer care center at (888) 685-1555.
Before you apply, make sure you understand the full picture: the coverage limits, the flood insurance requirements, and especially the potential for assessments and surcharges. Citizens provides a crucial safety net for Florida homeowners, but it's designed to be a temporary solution, not a permanent one. Keep looking for private market options, because if the private market becomes available at competitive rates, you won't have a choice about staying with Citizens anyway. The goal, for both you and the state, is to get you back into the private market as soon as it makes sense.
