STATE MARKETS: FLORIDA
Florida Citizens Property Insurance: eligibility, the clearinghouse and takeout offers
Citizens Property Insurance Corporation is Florida's state-created insurer of last resort. A primary home is eligible only if no private insurer offers comparable coverage, or every offer costs more than 20 percent above the Citizens premium, and its dwelling replacement cost is under $700,000 in most counties. Those two numbers, 20 percent and $700,000, decide most applications.
A plain reading of Florida Statutes sections 627.351(6), 627.3517 and 627.3518 and Citizens' published program pages, checked October 2026. Not legal or insurance advice, not a quote, and not a recommendation for or against any insurer. Citizens' policy forms, its underwriting rules and the statute control. Flood is a separate policy, and Citizens requires one for most policies.
What Citizens is, in law
Florida created Citizens by statute, in section 627.351(6) of the Florida Statutes. It writes personal lines residential coverage (homeowners, mobile home owners, dwelling, tenant and condominium unit owner policies) and commercial residential coverage such as condominium association and apartment building policies, for risks the private market will not take on the statute's terms. It is not a regular insurer competing for business. The statute builds in rules to keep it a last resort: an eligibility test that favors private offers, a cap on the value of homes it insures, a clearinghouse that re-shops its policies, and a depopulation program that moves policies back to private insurers.
The statute also commits Citizens to service standards: it says policyholders, applicants and agents should receive service no less than that generally provided in the voluntary market. That is a statement of intent, not a guarantee of any particular claim outcome, but it is the benchmark a complaint to the Office of Insurance Regulation would rely on.
The eligibility test, as a decision table
Work through the rows in order. The test differs for primary residences and for other homes, and the statute defines a primary residence as the dwelling that is the policyholder's primary home, or a rental property that is the primary home of the tenant, occupied for more than 9 months of each year.
| Question | If yes | If no |
|---|---|---|
| 1. Is the dwelling replacement cost $700,000 or more (or, for a condo unit, combined dwelling and contents replacement cost of $700,000 or more)? | Not eligible, unless the county is one where the Office of Insurance Regulation has found no reasonable degree of competition; there the cap is under $1 million | Go to question 2 |
| 2. Has an authorized insurer offered coverage at its approved rate, under a standard or basic policy including wind? | Go to question 3 | Eligible for a Citizens standard or basic policy including wind |
| 3. Is that offer more than 20 percent greater than the Citizens premium for comparable coverage? | Eligible for Citizens | Not eligible for any Citizens policy |
| 4. At renewal, has an authorized insurer offered comparable coverage? (Primary residences, renewals on or after April 1, 2023) | Not eligible to renew unless the offer is more than 20 percent greater than the Citizens renewal premium | Eligible to renew |
| 5. Not a primary residence? | The same 20 percent test applies to new applications, and to renewals on or after July 1, 2024. Offers from approved surplus lines insurers under an approved take-out plan also count for non-primary homes. | |
| 6. Will you carry flood insurance where required? | Eligible | Citizens may deny coverage to an applicant or insured who refuses to secure and maintain flood insurance |
Citizens' own clearinghouse page states the test in two lines: you may be eligible if no private-market companies are willing to offer coverage at their approved rates, or if the premium offered by private-market insurers is more than 20 percent higher than the premium for comparable coverage from Citizens.
The 20 percent rule, worked through
The premiums in this table are hypothetical, chosen to make the arithmetic easy to follow, and they are not quotes or averages. They show how the threshold is calculated, which is the part applicants most often get wrong.
| Line | Step | Illustration |
|---|---|---|
| A | Citizens premium for comparable coverage | $4,000 |
| B | The 20 percent threshold: A times 1.20 | $4,800 |
| C | Private offer 1 for comparable coverage | $4,700 |
| D | Private offer 2 for comparable coverage | $5,300 |
| E | Is any offer at or below line B? | Yes: offer 1 ($4,700) is not more than 20 percent greater |
| F | Result for a new primary-residence application | Not eligible for Citizens |
Check the arithmetic: $4,000 times 1.20 is $4,800. An offer of $4,700 is below that line, so it disqualifies the application even though it costs $700 more than Citizens. An offer of $5,300 is above the line and would not disqualify on its own. If offer 1 did not exist, the home would be eligible.
Two words in the statute carry a lot of weight: comparable coverage. A private offer with a much larger hurricane deductible or narrower settlement terms is not necessarily comparable. Citizens' clearinghouse page says the coverages on a comparative rater screenshot or quote should match the final policy. If you believe a disqualifying offer is not comparable, ask the agent to show the coverage lines side by side. Our percentage deductible guide shows how to put a hurricane deductible into dollars for that comparison.
The clearinghouse: how agents check the market for you
Section 627.3518 requires the Citizens Policyholder Eligibility Clearinghouse Program, and Citizens says it helps agents establish eligibility before placing or renewing a policy. The mechanics depend on the policy form.
| Policy forms | How eligibility is checked | At renewal |
|---|---|---|
| HO-3, HO-6, DP-1 dwelling and DP-3 dwelling | Quoted through the Clearinghouse, which compares participating private carriers | The agent works each renewal through the Clearinghouse; any offer not more than 20 percent greater than the Citizens renewal premium results in nonrenewal of the Citizens policy, and a new-business policy has to be written with the other carrier |
| HO-4, HO-8, DP-3-C, DP-1-C, mobile home forms (MHO-3, MHO-4, MDP-1) and all wind-only forms | Quoted in Citizens' own system; the agent determines eligibility, for example through a comparative rater | The agent remarkets each policy with the carriers it can write; if a private offer is available, the agent contacts the policyholder |
Citizens says agents may be required to upload a nonrenewal or cancellation notice, or new purchase documents, and evidence of the private-market offers or declinations, with coverages matching the final policy. It notes that no proof of a prior notice is needed if coverage lapsed more than 45 days earlier. Risks sent to private carriers through remarketing are subject to those carriers' new-business underwriting, which can include current inspections.
A policyholder can also choose to leave. Citizens says an agent may place a policy with a private carrier whenever a valid offer exists, including when the policy is eligible to renew with Citizens but the policyholder prefers the private coverage at a greater premium.
Takeout offers through depopulation
Depopulation is the separate program in which private insurers ask to assume Citizens policies. Citizens says every company assuming its policies has been approved by the Office of Insurance Regulation. The statute sets what you must be told and when you can say no.
- Written notice of every offer. Citizens must notify the policyholder and the agent of record about every insurer requesting to take out the policy, with the estimated premium, a description of the coverage, and a comparison of that premium and coverage with Citizens'.
- A list for your agent. Citizens must keep a consolidated list of all insurers requesting to take out a policy, with coverage descriptions and estimated premiums, available to the agent of record.
- The 20 percent rule again. For a primary residence, under take-out applications submitted on or after January 1, 2023, a take-out offer from an authorized insurer ends Citizens eligibility unless its premium is more than 20 percent greater than the Citizens renewal premium for comparable coverage.
- Your agent stays. Section 627.3517 protects your right to retain your current agent when a take-out offer arrives, if the agent is licensed and appointed with Citizens. If your agent cannot or will not be appointed with the take-out insurer, you are not disqualified from Citizens because of that offer.
Treat a takeout offer the way you would any quote. Compare the dwelling limit, the hurricane deductible, the roof settlement terms, other deductibles and exclusions, and the insurer's details. Citizens' depopulation page encourages policyholders to consider the offer with their agent, and suggests coverage worksheets on its resources page. It also makes a point about assessments, covered below, that is Citizens' own statement rather than a promise about any offer.
The flood requirement
Since 2023, Florida law has required Citizens to make flood insurance a condition of coverage for personal lines residential risks, with exceptions. Applicants and insureds sign a form acknowledging that Citizens does not provide flood insurance and that the risk will not be eligible without it.
| Who | Flood coverage required for policies effective on or after |
|---|---|
| Property in a FEMA special flood hazard area, new policies | April 1, 2023, at initial issuance |
| Property in a FEMA special flood hazard area, renewals | July 1, 2023, by the time of renewal |
| Dwelling replacement cost $600,000 or more | January 1, 2024 |
| Dwelling replacement cost $500,000 or more | January 1, 2025 |
| Dwelling replacement cost $400,000 or more | January 1, 2026 |
| All other personal lines residential property | January 1, 2027 |
| Policies without wind coverage, and condo unit owner policies | Not required |
The required flood coverage must at least match the dwelling coverage available from the National Flood Insurance Program, or meet the statute's alternative standard for private flood. For a Citizens policyholder in a lower-value home outside a mapped flood zone, the January 1, 2027 date is the one to plan for: the NFIP typically has a 30-day waiting period, so buying close to the renewal date risks a gap. Our flood insurance guide covers how flood policies work. The statute also says a Citizens policyholder making a water damage claim has the burden of proving the damage was not caused by flooding, which is one more reason to have both policies in place.
Rates, surcharges and assessments
Three separate charges can change what a Citizens policy costs, and they work differently. A fourth charge belongs to a different system: when a private insurer is liquidated, the Florida Insurance Guaranty Association pays its covered claims and recovers the cost through assessments on insurers, covered in our insurer insolvency guide.
| Charge | What the statute says | Who pays |
|---|---|---|
| Annual rate change, primary residence | Capped for any single policy, excluding coverage changes and surcharges: 12 percent for 2023, 13 percent for 2024, 14 percent for 2025, 15 percent for 2026 and later, until Citizens reaches actuarially sound rates; sinkhole coverage excluded from the cap | The policyholder, in the premium |
| Annual rate change, not a primary residence | Not subject to the cap above; may not be charged more than 50 percent above, nor less than, the prior year's established rate | The policyholder |
| Citizens policyholder surcharge | If the board projects a deficit, a uniform surcharge of up to 15 percent of premium on all Citizens policyholders, payable at cancellation, renewal or new issuance within 12 months of the levy; treated like premium for nonpayment | Citizens policyholders only |
| Emergency assessments | If the deficit exceeds what surcharges recover, levied for as many years as necessary, collected as a uniform percentage on policies of assessable insurers and Citizens, excluding NFIP policies | Policyholders across many lines in Florida, not only Citizens customers |
The caps above are ceilings on a single policy's increase, not the change most policyholders saw in 2026. Citizens' OIR-approved 2026 rate changes averaged an 8.8 percent decrease for homeowners multiperil policies across the state, and an average 5.1 percent decrease for homeowner wind-only policies, for policies with effective dates on or after July 1, 2026. The change varies by territory and product, and the caps still bound any single primary-residence increase.
Citizens' own pages emphasize the surcharge point. It says Citizens policyholders can be required to pay an assessment if Citizens does not have the resources to pay claims after a major hurricane or series of storms, that the assessment could be significant, and that private-market policyholders can be subject to a much lower assessment amount. Those are Citizens' statements; the statute's 15 percent surcharge ceiling is the figure a policyholder can plan around.
For a sense of scale, apply the ceiling to the illustration above. A 15 percent surcharge on a $4,000 premium is $600, on top of the premium itself, collected in the year after a levy. That is an illustration of the arithmetic, not a forecast of any levy.
Inspections and the roof
Citizens' underwriting looks closely at older houses. It requires a four-point inspection of the roof, electrical, plumbing and HVAC for homeowner, dwelling and mobile home applications on properties more than 20 years old, and roofs past 25 years (shingle and similar) or 50 years (tile, slate, clay, concrete, metal) need documentation of at least five years of remaining useful life. Our four-point inspection guide walks through the form. A separate wind mitigation inspection can earn premium discounts; see the wind mitigation guide.
Florida's general roof statute, section 627.7011(5), is written for any insurer issuing or renewing a homeowner's policy, and section 627.351 does not say whether it governs Citizens, so ask your agent how it applies to your renewal. As written, it says an insurer may not refuse to issue or renew solely because a roof is under 15 years old, and for an older roof must allow an inspection at the homeowner's expense, and may not refuse solely for age if the roof has at least five years of useful life left.
A year with Citizens: what to expect
- Application. The agent runs the Clearinghouse or comparative rater, collects any required nonrenewal notice and offer evidence, and orders inspections for an older home. You sign the flood acknowledgment if it applies. Citizens will not bind new coverage while a tropical storm or hurricane watch or warning is up anywhere in Florida, so a buyer should bind well before closing; our guide to a hurricane binding suspension before closing lists recent suspensions and how long each lasted.
- During the term. Citizens may order an exterior or interior field survey at no cost to you and ask for repairs of hazards. Takeout offers can arrive through depopulation, each with a written comparison.
- Before renewal. The agent remarkets the policy. If a comparable private offer is within 20 percent of the Citizens renewal premium, the Citizens policy will not renew, and you move to the private policy as new business.
- At renewal. Check the rate change against the cap that applies, and look for any surcharge line. Confirm your flood policy is in force and matches the requirement for your dwelling value.
The common thread is that Citizens is designed to be left. Planning for the renewal check, rather than being surprised by it, avoids a scramble to bind a private policy in the last weeks of the term.
Common mistakes
- Assuming a cheaper private quote is required to be cheaper than Citizens. The test is 20 percent above the Citizens premium, not below it.
- Leaving flood until renewal week. The requirement now reaches homes worth $400,000 or more and reaches all personal lines property from 2027; a waiting period can leave you ineligible.
- Comparing a takeout offer on premium only. Read the hurricane deductible and roof settlement terms first.
- Forgetting the value cap. A renovation that lifts dwelling replacement cost to $700,000 or more can end eligibility in most counties.
- Ignoring the surcharge risk. The surcharge applies only to Citizens policyholders; budget for it in a year after a major storm.
Questions Florida homeowners ask about Citizens
Who is eligible for Citizens Property Insurance?
Under Florida Statutes section 627.351(6), a primary residence applying for new coverage is not eligible if an authorized insurer offers comparable coverage at a premium no more than 20 percent above the Citizens premium. If no private insurer will offer coverage, or every offer is more than 20 percent higher, the home can be eligible. Homes with a dwelling replacement cost of $700,000 or more are not eligible, except in counties the Office of Insurance Regulation finds lack reasonable competition, where the cap is $1 million.
What is the Citizens Clearinghouse?
It is the system, required by Florida Statutes section 627.3518, that agents use to check private-market offers before placing or renewing a policy with Citizens. For HO-3, HO-6, DP-1 and DP-3 forms, agents quote through the Clearinghouse; Citizens says any offer not more than 20 percent greater than the Citizens renewal premium will result in nonrenewal of the Citizens policy.
Can I refuse a Citizens takeout offer?
It depends on the price. For a primary residence, if a take-out offer from an authorized insurer, made under a depopulation application submitted on or after January 1, 2023, is not more than 20 percent above your Citizens renewal premium for comparable coverage, the statute says the risk is no longer eligible for Citizens. If the offer is more than 20 percent higher, you can stay. Florida law also protects your right to keep your current agent when a take-out offer arrives.
Does Citizens require flood insurance?
Yes, for most personal lines policies that include wind. Homes in FEMA special flood hazard areas have needed flood coverage since 2023. Outside those areas the requirement phased in by dwelling replacement cost: $600,000 or more from January 1, 2024, $500,000 or more from January 1, 2025, $400,000 or more from January 1, 2026, and all other personal lines residential property from January 1, 2027. Policies without wind coverage and condo unit owner policies are exempt.
How much can Citizens raise my rate each year?
For a primary residence, the statute caps Citizens' annual rate increase on any single policy at 15 percent for 2026 and later years, excluding coverage changes and surcharges, until Citizens reaches actuarially sound rates. Policies that do not cover a primary residence are not subject to that cap and may be charged up to 50 percent above the prior year's rate. Surcharges and assessments after a deficit are separate.
What is a Citizens policyholder surcharge?
If Citizens projects a deficit, its board must levy a surcharge on all Citizens policyholders of up to 15 percent of premium, collected at renewal, new issuance or cancellation within the following 12 months. If that is not enough, emergency assessments are collected from policyholders of most property and casualty lines in Florida, not only Citizens customers. Citizens says private-market policyholders can be subject to a much lower assessment amount.
Sources and verification
Lines of coverage, service standard intent, $700,000 dwelling replacement cost cap effective January 1, 2017 and the $1 million exception, 20 percent eligibility test for new and renewal primary residences (renewals on or after April 1, 2023) and non-primary homes (renewals on or after July 1, 2024), basic and standard policies including wind, take-out offer rule for applications submitted on or after January 1, 2023, take-out notice contents and consolidated list, rate increase caps of 12, 13, 14 and 15 percent, 50 percent limit for non-primary homes, primary residence definition, policyholder surcharge of up to 15 percent, emergency assessments, flood insurance requirement and phase-in dates, exemptions and minimum flood coverage, water damage burden of proof: Florida Statutes section 627.351 (2026), checked October 22, 2026. Right to retain your agent on a take-out or keep-out offer: section 627.3517; clearinghouse program: section 627.3518; both checked October 22, 2026. Clearinghouse eligibility criteria, policy forms, documents, 45-day lapse note, renewal remarketing and nonrenewal rule: Citizens Property Insurance Corporation, Clearinghouse; OIR approval of assuming companies, assessment statements and coverage worksheets: Citizens, Depopulation; four-point and roof thresholds: Citizens, Inspections; all checked October 22, 2026. Roof age rules: section 627.7011(5), checked October 22, 2026. NFIP 30-day waiting period: FEMA, Flood insurance, checked October 22, 2026. 2026 rate changes: Citizens Property Insurance Corporation, July 2026 Rate, Rule, and Wind-Loss Mitigation Updates (April 30, 2026), checked November 1, 2026. The 20 percent and surcharge examples are labeled illustrations. See Methodology and the Disclaimer.
If a Citizens renewal or takeout letter is in front of you, put the Citizens premium and the private premium on one line and multiply the Citizens figure by 1.20; that single calculation tells you whether staying is an option. For the published average across Florida and the state's other rules, see the Florida homeowners insurance cost page, and the catastrophe and market hub for other residual markets.