Citizens Property Insurance in Florida is a state-created, not-for-profit insurer of last resort that sells homeowners, condo, and mobile home coverage to Floridians who can’t buy a policy on the private market at an affordable price. It was established by the Legislature under Florida Statute 627.351 and operates under rules that differ from those of private carriers.1Justia Law. Florida Code Title XXXVII – Section 627.351 Citizens peaked at roughly 1.4 million policies in 2023 and had shrunk to about 395,000 by the end of 2025 as private insurers re-entered the market, but it remains the only option for hundreds of thousands of property owners in the state.
Who Can Buy a Citizens Policy
Citizens is only for property owners who genuinely cannot get coverage elsewhere. You qualify under one of two conditions: no private insurer will write you a policy at approved rates, or the cheapest comparable private quote is more than 20% higher than what Citizens would charge.2Citizens Property Insurance Corporation. Rule for New-Business Eligibility Increases to 20% That 20% threshold replaced an earlier 15% rule in 2021.
You don’t apply directly. Your insurance agent runs your application through the Clearinghouse, a system required by Florida Statute 627.3518 that checks whether a private carrier will cover your property within the 20% window.3Citizens Property Insurance Corporation. Clearinghouse For standard homeowners and condo policies, the Clearinghouse automatically solicits quotes from participating carriers. For mobile homes, wind-only policies, and some other types, the agent has to shop the market manually and document the results.
If a private insurer offers coverage at a premium that isn’t more than 20% above Citizens’ rate, you’re ineligible and must take the private offer. Your agent uploads either a screenshot from a comparative rater confirming no affordable private offer exists, or at least one quote showing the available premium is above the threshold.
The property itself also has to meet underwriting standards. Shingle roofs older than 25 years and tile, slate, clay, concrete, or metal roofs older than 50 years need documentation of a full replacement before Citizens will write the policy, unless an underwriter accepts proof that the roof has at least five years of useful life left.4Citizens Property Insurance Corporation. What Are the Roof Age Requirements for Personal Residential Policies Homes with a dwelling replacement cost of $700,000 or more face additional eligibility restrictions under the statute.1Justia Law. Florida Code Title XXXVII – Section 627.351
What a Citizens Policy Covers
Citizens writes homeowners, condominium, and mobile home policies. All of them are designed as basic protection, all exclude flood damage, and all carry hurricane deductibles calculated as a percentage of the dwelling’s insured value.
A standard homeowners policy covers the structure, personal belongings, and liability against perils like fire, windstorm, and theft. A condo policy covers the interior of your unit (flooring, cabinetry, built-in appliances), personal belongings, liability, and loss assessment, with the condo association’s master policy handling the building exterior and common areas. A mobile home policy covers the structure (including attached porches or carports), personal property, and liability, with provisions tied to tie-down and anchoring requirements because manufactured housing faces elevated wind risk.
The hurricane deductible is one of the most misunderstood features. It’s percentage-based, not a flat dollar figure. A 2% hurricane deductible on a home insured for $200,000 means you pay the first $4,000 before Citizens pays anything; on a $500,000 policy, that same 2% becomes $10,000.5Citizens Property Insurance Corporation. Deductibles This catches many policyholders off guard after a storm.
Flood damage isn’t covered under any Citizens policy. You buy flood insurance separately through the National Flood Insurance Program or a private flood carrier.6Federal Emergency Management Agency. Flood Insurance
The Mandatory Flood Insurance Requirement
Starting in late 2022, Florida began requiring most Citizens policyholders with wind coverage to also carry a separate flood policy. If your home is in a FEMA-designated Special Flood Hazard Area, flood insurance is already required regardless of dwelling value. For homes outside those high-risk zones, the requirement phases in on this schedule:7Citizens Property Insurance Corporation. Flood
- January 1, 2024: dwelling coverage of $600,000 or more
- January 1, 2025: $500,000 or more
- January 1, 2026: $400,000 or more
- January 1, 2027: all policies regardless of value
Condo unit-owner policies, tenant policies, and policies that exclude wind coverage are exempt. If you fall within the mandate and don’t maintain flood coverage, Citizens can decline to renew your policy.
How Premiums Are Set
Because Citizens is a government entity rather than a competitive insurer, premiums are set through a regulated process. The Florida Office of Insurance Regulation must approve rate changes, and state law caps how much Citizens can raise rates in a single year. Under reforms passed in Senate Bill 76, the annual cap has been increasing by 1% per year and reached 15% for primary residences as of January 1, 2026.8Citizens Property Insurance Corporation. 2026 Rate Change Non-primary residences face a potential increase of up to 50% above the prior year’s rate.
The cap applies only to the base rate. It doesn’t cover coverage changes, wind mitigation adjustments, sinkhole loss coverage rates, or surcharges and assessments, so your total bill can rise by more than the headline percentage.
Your individual premium depends on location, construction type, roof age and condition, and proximity to the coast. Wind mitigation features can bring the number down. Florida law requires Citizens to offer premium discounts for structural improvements that reduce hurricane damage, and a licensed inspector documents eligible features using the state’s Uniform Mitigation Verification Inspection Form.9Florida Office of Insurance Regulation. Premium Discounts for Hurricane Loss Mitigation Hip roofs, secondary water barriers, roof-to-wall reinforcements, and impact-resistant shutters or windows each trigger credits. An inspection typically runs $75 to $175 and often pays for itself in the first year of savings.
Assessments: Why Citizens Can Affect You Even If You Aren’t a Policyholder
If a major hurricane or series of storms exhausts Citizens’ reserves, state law requires the corporation to levy assessments in a set order, and one of those assessments reaches well beyond Citizens’ own book.10Citizens Property Insurance Corporation. Assessments
First is a Citizens Policyholder Surcharge of up to 15%, applied only to Citizens policyholders on top of their regular premium. If that doesn’t close the deficit, an Emergency Assessment of up to 10% per year hits nearly every property and casualty policyholder in Florida, including customers of private insurers. It applies to homeowners, renters, auto, boat, and other policies and can continue year after year until the deficit is paid off. This is sometimes called “Florida’s hurricane tax.”11Citizens Property Insurance Corporation. Citizens Assessments – Florida’s Hurricane Tax Brochure
When you buy a Citizens policy, your agent is required to have you sign an acknowledgment that surcharges and assessments combined could reach as high as 25% of your premium.1Justia Law. Florida Code Title XXXVII – Section 627.351
Getting Moved to a Private Insurer
Citizens isn’t meant to be your permanent insurer. The state actively moves policies to private carriers through depopulation, often called the “take-out” program. Private insurers that meet financial standards set by the Office of Insurance Regulation can apply to assume blocks of Citizens policies.12Florida Office of Insurance Regulation. Take-Out Companies
If a private insurer selects your policy, you receive a take-out offer. Whether you can refuse depends on the price. If the private insurer’s premium is more than 20% above your Citizens renewal premium, you remain eligible for Citizens and can stay. If the private offer is within that 20% window, Citizens won’t renew and you move to the private carrier.3Citizens Property Insurance Corporation. Clearinghouse It’s the same 20% threshold used for eligibility, applied in reverse.
Policies are written for one-year terms, and your agent remarkets through the Clearinghouse at every renewal. For standard nonrenewals and cancellations, Citizens must give at least 120 days’ written notice before the effective date.13Florida Legislature. Florida Statutes 627.4133 – Notice of Cancellation, Nonrenewal, or Renewal Premium When a policy is being nonrenewed because a private insurer assumed it through take-out, the notice is at least 45 days. Nonpayment, failure to maintain the property (especially the roof), and failure to obtain required flood insurance are other common grounds for nonrenewal.
Filing a Claim and Resolving Disputes
Report any claim to Citizens within one year of the date of loss. A supplemental claim, for damage discovered after the initial claim, must be filed within 18 months.14Citizens Property Insurance Corporation. Is There a Time Limit by Which I Must Report My Claim These windows were shortened from two years and three years by reforms passed in late 2022.15Citizens Property Insurance Corporation. Special Legislative Session – December 2022 Advisory Miss them and you forfeit the right to payment. Claims can be filed through Citizens’ myPolicy portal, through your agent, or by phone on the 24/7 claims line. Photos, receipts, and repair estimates ready at the time of filing speed up the process.
If you disagree with a denial or settlement amount, start by requesting a formal reconsideration with contractor estimates or other evidence of the actual cost. Your policy also includes an appraisal clause: both sides hire an independent appraiser, those two select an umpire, and the umpire’s decision on disputed items is binding. Appraisal resolves disagreements over the dollar amount of damage but not whether the damage is covered at all.
The December 2022 reforms changed what happens if you want to sue. One-way attorney fees, which previously let policyholders recover legal costs from the insurer when they won, were eliminated. Assignment of benefits, which let contractors file claims directly against insurers on a policyholder’s behalf, was eliminated for policies issued after January 1, 2023.15Citizens Property Insurance Corporation. Special Legislative Session – December 2022 Advisory Citizens policies may also include mandatory binding arbitration provisions as an alternative to a lawsuit. Keep detailed records of every communication, policy document, adjuster report, and claim-related expense, whatever path you end up taking.