Citizens Shrinks: What Florida Homeowners Need to Know About the Big Insurance Shift
Florida’s insurance market just hit a major turning point—and for once, it might be good news.
Why This Matters
Citizens was created to step in when the private market fails—but over the past few years, it became the go-to insurer for more than 1.3 million Floridians. Now, that’s changing.
Thanks to a strategy known as “depopulation,” Citizens is transferring policyholders to private insurers who can offer similar rates and coverage. The goal: reduce the state’s financial exposure in case of a major storm and restore confidence in the private market.
A Win for Homeowners?
If you’re among the 800,000 still with Citizens—or you recently got a letter saying you’re being moved to a private insurer—you might be wondering: Is this good or bad?
Here’s what you need to know:
- Private options are increasing. More insurers are stepping back into the Florida market, which means more competition and potentially better service.
- Some premiums are going down. Especially in places like Miami-Dade and Broward counties, state regulators have ordered rate decreases of 4.5% to 6.3% for eligible Citizens policyholders.
- You have a choice. By law, if a private company offers you coverage that’s no more than 20% higher than what you’re paying with Citizens, you’re required to switch. But if the offer exceeds that, you can stay with Citizens.
Risk Still Looms
Despite these changes, Florida’s insurance crisis isn’t over. Rates remain high, and some homeowners are opting to go without insurance entirely—a dangerous gamble in a state vulnerable to hurricanes and flooding.
Plus, while Citizens is shrinking, the risk still exists that a major storm could overwhelm the system and require taxpayer bailouts. That’s part of why this depopulation effort is being treated with urgency.
What You Should Do
- Compare quotes early. Don’t wait until your policy is up for renewal—start shopping around now.
- Understand the 20% rule. If a private insurer is within 20% of Citizens’ price, you may be required to switch. But you can reject offers above that threshold.
- Stay covered. Don’t risk being uninsured in Florida’s storm season. Even if premiums are painful, the alternative could be financially devastating.
The Bottom Line
This shift is a major win for Florida regulators trying to reduce the state’s insurance burden—and a sign that private companies are regaining confidence in the market.
But for homeowners, it’s a reminder to stay informed, shop smart, and never assume you’re stuck with one option. As the market evolves, opportunities to save and improve your coverage may be just around the corner.
