A homeowner in Hialeah opens her mail and finds a letter about her Citizens policy with the word “takeout” in it and the name of an insurance company she has never heard of. The letter says the company wants to assume her policy at renewal. Her first instinct is to throw it away and stay where she is. Her second is to call her neighbor, who got the same letter last year, did nothing and ended up with a different company and a policy she never read. Neither is the right move. The letter is the start of a decision, and the homeowner who treats it that way usually ends up with better coverage at a better price.
Citizens Property Insurance Corporation was created by the Florida Legislature as the state’s insurer of last resort, meant for homeowners who cannot find coverage in the private market. For years, especially in Miami-Dade, it became the default for hundreds of thousands of homes as private carriers pulled back. After the 2022 and 2023 reforms brought carriers back to Florida, the state has been moving policies out of Citizens and back into the private market, and Miami homeowners are seeing the effects in their renewal mail.
How Takeout Offers Work
Through Citizens’ depopulation program, private insurers approved by the Florida Office of Insurance Regulation can offer to assume groups of Citizens policies. If your policy is selected, you receive a notice naming the company and describing its offer, along with a window to opt out. The offer is one company’s proposal for your home, not a review of every option available to you, and the policy it describes may not match your Citizens policy line for line.
The 20 Percent Rule
This is the part most homeowners do not know. Under Florida law, a Citizens policyholder becomes ineligible to renew with Citizens when a private insurer offers comparable coverage at a premium no more than 20 percent above the Citizens renewal premium. That applies to takeout offers and to other private offers. In practice, many takeout offers fall inside that range, so opting out does not mean staying with Citizens.
It also does not mean you have to accept the company in the letter. Being ineligible for Citizens means you need private coverage, not that you need that particular company’s policy. You are free to place your home with any private carrier, and an independent agency can compare the takeout offer against the rest of the market before you decide. New applicants face the same test: Citizens can generally write a new policy only when private coverage is unavailable or costs more than 20 percent above the Citizens premium.
Compare the Coverage, Not Just the Price
A takeout policy is a different policy from a different company, so read it the way you would read any new policy. The things that change most often are how the roof is settled, whether at replacement cost or actual cash value, the hurricane deductible and the all-other-perils deductible, the water damage limits and any exclusions for screen enclosures or cosmetic roof damage. Our article on how to read your Florida homeowners declarations page shows where each of those appears.
Check the company too. Every carrier in the depopulation program is approved by the state, but carriers differ in financial strength and in how they handle claims. Look at the carrier’s financial strength rating from A.M. Best or Demotech and its information on the Florida Office of Insurance Regulation’s website, or ask your agent to walk you through it.
Leaving Citizens Before a Letter Arrives
You do not have to wait for a takeout letter to leave Citizens. Many Miami homes that landed there during the worst years of the market now have private options, especially homes with a newer roof, a current wind mitigation inspection or documented updates to the electrical, plumbing and air conditioning. Florida law generally prevents an insurer from refusing a home solely because its roof is less than fifteen years old, as our article on roof age and Florida insurance explains, and a current wind mitigation inspection can move a home into markets that would not look at it before. Reviewing your Citizens policy against the private market at renewal costs nothing and often finds a better price.
The Citizens Flood Requirement
Citizens has been phasing in a rule that its homeowners policies that include wind must also carry flood insurance. Homes in high-risk flood zones already had to carry it, and the requirement reaches every remaining personal residential policy that includes wind at renewals on or after January 1, 2027. Condo unit owner and tenant policies are exempt. Many Miami homeowners are receiving non-renewal notices because Citizens has no proof of flood coverage on file, and a non-renewal for that reason is a good moment to compare the whole program, flood included, against the private market. Our article on the Citizens flood requirement covers the deadlines, and our article on NFIP versus private flood explains the flood options.
When Citizens Is Still the Right Answer
Citizens still has a role. Some homes, such as older homes with original systems, homes very close to the water or homes with a difficult claims history, may have no private option at a comparable price, and Citizens remains available for them. Citizens also writes wind-only policies in eligible coastal areas, which some owners pair with a private policy that excludes wind. The goal is not to leave Citizens at any cost but to make sure you are there because it is the best fit, not because nobody checked.
What Citizens Policyholders Should Confirm
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If you received a takeout letter, when does the opt-out window close?
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How does the takeout policy settle roof claims, and what are its deductibles?
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What are the carrier’s financial strength rating and claims record?
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Have you compared the offer against other private carriers?
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Do you have a current wind mitigation report and documentation of roof and system updates?
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Is flood coverage in place to meet the Citizens requirement?
Compare Citizens and Private Coverage With Prestige Insurance Group
Prestige Insurance Group helps homeowners across Miami, Hialeah, Kendall, Doral, Coral Gables and the rest of Miami-Dade compare Citizens, takeout offers and the private market, as well as in Orlando and across our nine-state footprint for clients who move out of state and stay with us. With access to over twenty homeowners carriers in Florida, we can tell you whether the offer in your letter is the best one available, and we can re-place homes that received a non-renewal for missing flood coverage. Send us your takeout letter or your Citizens declarations page. Learn more on our South Florida homeowners insurance page, or see how to save money on homeowners insurance in Florida. Call the office nearest you. Se habla español.
Miami: 305-969-8776 Orlando: 407-993-2331
Frequently Asked Questions
Can I refuse a Citizens takeout offer and stay with Citizens?
Usually not, if the private offer is comparable coverage within 20 percent of your Citizens renewal premium. In that case you become ineligible to renew with Citizens, but you can still choose any private carrier, not only the one in the letter.
Do I have to accept the company named in my takeout letter?
No. You need private coverage, but you can place your home with any private carrier. An independent agent can compare the takeout offer against the rest of the market before your opt-out window closes.
Is Citizens still available for new policies?
Yes, but generally only when private coverage is not available or would cost more than 20 percent above the Citizens premium. It is meant to be a last resort.
Why is Citizens asking for proof of flood insurance?
Citizens requires flood coverage on homeowners policies that include wind, phased in by flood zone and dwelling value, with every remaining policy included at renewals on or after January 1, 2027. Condo unit owner and tenant policies are exempt.
General information only, not legal advice. Citizens eligibility rules, depopulation procedures, flood requirements, carrier ratings and coverage forms vary and change over time, and Florida statutes can change. Refer to your actual policy, your takeout notice and Citizens’ current guidelines for the terms that apply to you.
