Citizens Property Insurance vs. Private Carriers in Florida
If you’ve received a letter from Citizens Property Insurance with the word “depopulation” printed on it, you’re far from alone. Florida’s insurer of last resort has undergone one of the most dramatic transformations in its history — and understanding what’s actually happening, and what your real options are, matters directly for your coverage and your wallet.
At Prestige Insurance Group, we help Florida homeowners navigate exactly this transition, whether you’re currently with Citizens, have received a takeout offer, or are simply comparing your options. Learn more about our Florida Homeowners Insurance solutions.
The Real Scale of What’s Happening
Citizens was created by the Florida Legislature in 2002 as a genuine insurer of last resort — coverage for homeowners who couldn’t find a policy in the private market, not a primary option for most Floridians. For years, it drifted far from that original purpose. Citizens’ policy count peaked at 1.42 million in October 2023, making it Florida’s largest property insurer by far.
That’s changed dramatically. By early 2026, Citizens’ policy count has fallen to roughly 336,000 to 392,000 policies — a 73% to 76% reduction from peak, and the lowest level in over a decade. More than 546,000 policies were transferred out of Citizens to private carriers in 2025 alone, removing an estimated $235.6 billion in exposure from the state-backed insurer. Citizens is no longer Florida’s largest property insurer.
Why This Is Happening: The Depopulation Program
This shift isn’t random — it’s the direct, intended result of Florida’s Depopulation Program, which matches Citizens policyholders with private insurance companies interested in assuming their coverage. Every company participating in this program must be approved by the Florida Office of Insurance Regulation before it can assume policies. More than a dozen new admitted carriers have entered the Florida market since 2022-2023 reforms, including companies like Slide, Orange Insurance Exchange, Mangrove, Mainsail, and Orion180 Select — Slide alone was authorized to assume up to 455,900 Citizens policies in a single 2025 approval round.
The underlying reforms driving this recovery are real and specific: Senate Bill 2-A (December 2022) eliminated one-way attorney fees and banned post-loss assignment of benefits, while the 2023 tort package tightened bad-faith and claim-filing rules. These changes made Florida’s market genuinely more attractive to private carriers for the first time in years.
The “20% Rule” You Need to Understand
This is genuinely the most important, and least understood, mechanic in this entire process. If a private carrier’s takeout offer comes within 20% of what Citizens would charge you at renewal, Florida law requires you to leave Citizens for that private coverage — you don’t get to simply decline and stay. This isn’t a minor technicality: approximately 97% of recent takeout offers have been close enough to Citizens’ premiums that policyholders receiving them are no longer legally eligible to remain with Citizens.
In practical terms, if you’re currently with Citizens, receiving a depopulation letter is a near-certainty at some point, not an unusual event — and understanding the rule now, before you receive one, helps you respond calmly rather than being caught off guard.
What You Should Actually Do If You Receive a Takeout Offer
Not all private carriers are equally stable, even though every company in the depopulation program has been state-approved. Checking a carrier’s financial strength rating and claims-handling history before accepting a takeout offer is genuinely worth the time — Demotech and AM Best ratings, along with the Florida Office of Insurance Regulation’s own carrier information, can typically be reviewed in about 15 minutes.
Just as importantly, a takeout offer isn’t necessarily your only option. An independent insurance agency can shop dozens of carriers on your behalf, and it’s genuinely common to find better coverage at a lower price than the specific takeout offer sitting in your packet — the offer you received represents one company’s proposal, not the full universe of what’s actually available to you in today’s market.
A Genuinely Important Distinction: Personal Lines vs. Commercial
This part of the story is more nuanced than headlines about statewide rate cuts suggest. While Citizens has recommended rate decreases for most personal lines policyholders in 2026 — a genuine reversal from requesting a 15% increase just six months earlier — commercial lines are moving in the opposite direction, with Citizens requesting a 10.4% average increase for late 2026. Citizens’ own leadership has explained that commercial rates remain below actuarially sound levels even as personal lines rates have caught up. If you own rental property or a business alongside your primary residence, understand that these two markets are genuinely moving on different timelines right now.
Citizens Eligibility Has Also Tightened
As Citizens has shrunk back toward its intended role, eligibility for new policies has become genuinely more restrictive. Under current Florida law, Citizens may only write a new policy for a property if coverage isn’t available from a Florida-authorized private insurer, or if private coverage would cost significantly more — reinforcing that Citizens is meant to function as a true last resort, not a default option. Citizens has also implemented mandatory flood insurance requirements on a phased schedule tied to property value, consistent with the broader statewide flood mandate now taking effect.
Should You Actively Try to Leave Citizens?
Given how dramatically the private market has recovered — 17-plus new carriers, genuine rate competition, and real rate decreases for the first time in years — many current Citizens policyholders may find better coverage and pricing available in the private market even without waiting for a formal takeout offer. Working with an independent agency to compare your current Citizens coverage against real private market alternatives is worth doing proactively, rather than waiting for a depopulation letter to force the decision.
Frequently Asked Questions
Can I refuse a Citizens takeout offer and stay with Citizens? Not if the offer is within 20% of your Citizens premium — Florida law requires you to accept private coverage in that situation.
Are all private carriers assuming Citizens policies financially stable? They’re all state-approved, but stability varies — checking a carrier’s Demotech or AM Best rating before accepting an offer is genuinely worth the few minutes it takes.
Is Citizens still a good option for new coverage? Eligibility has tightened significantly, and Citizens is now intended to serve as a genuine last resort rather than a competitive option for most homeowners.
Why are Citizens’ personal and commercial rates moving in opposite directions? Personal lines rates have caught up to actuarially sound levels following years of increases, while commercial rates remain below that level, prompting a continued increase specifically for commercial policies.
Should I wait for a takeout letter, or shop the private market now? Given how much the private market has recovered, comparing your options proactively rather than waiting is often the better strategy.
Navigating Florida’s Changing Insurance Landscape
Florida’s property insurance market has genuinely transformed over the past two years, and understanding where Citizens fits into that picture — and what your real options are — matters directly whether you’re currently insured with Citizens or simply comparing coverage.
Prestige Insurance Group helps Florida homeowners compare Citizens and private market coverage to find the right fit for their specific situation.
Contact Prestige Insurance Group today:
Miami: 305-969-8776 Orlando: 407-993-2331 Stuart: 561-983-4333
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