Citizens Property Insurance in Florida: Eligibility, the 20% Rule and Leaving

For many Florida homeowners, Citizens Property Insurance is the policy they ended up with when private companies said no. For others, it’s a name on a letter announcing that a private insurer wants to take over their policy. Either way, the rules are set by statute, they’ve changed several times since 2022, and they decide whether you can get into Citizens, stay there or have to leave.

Here’s how Citizens works as of October 2026, in plain terms.

What is Citizens Property Insurance Corporation?

Citizens is Florida’s government-created property insurer for people who can’t find coverage in the private market. It was created by the Florida Legislature in August 2002 as a “not-for-profit, tax-exempt, government entity,” and it describes itself as the state’s insurer of last resort. Its rules are in section 627.351(6), Florida Statutes, and its rates and underwriting manuals are reviewed by the Office of Insurance Regulation (OIR).

Citizens has shrunk sharply. A January 2026 Florida Senate staff analysis reported that Citizens had more than 1.4 million policies in force in September 2023 and fell below 500,000 policies in November 2025.

Citizens writes homeowners (HO-3), condo unit owners (HO-6), renters (HO-4), dwelling and mobile home policies. It also offers an HO-8 for some older homes. Citizens describes the HO-8 as a named-peril policy that “could pay policyholders significantly less in the event of a loss” than an HO-3.

Who is eligible for Citizens?

Eligibility turns on three things: whether a private insurer will offer coverage at a comparable price, the home’s replacement cost, and Citizens’ underwriting rules.

The 20% rule

Under section 627.351(6)(c)5., Florida Statutes, a primary residence applying to Citizens isn’t eligible if an authorized private insurer offers comparable coverage at a premium that isn’t more than 20% greater than the Citizens premium. The same test applies at renewal for policies renewing on or after April 1, 2023. For homes that aren’t primary residences, a 20% test applies to new applications and, for renewals on or after July 1, 2024, to renewal offers as well.

Situation	Private offer for comparable coverage	Result
New application, primary residence	Not more than 20% above Citizens	Not eligible for Citizens
New application, primary residence	More than 20% above Citizens, or no offer	Eligible for Citizens
Renewal, primary residence	Not more than 20% above the Citizens renewal premium	Not eligible to renew
Renewal, primary residence	More than 20% above, or no offer	May renew with Citizens

New and renewal personal lines policies run through Citizens’ clearinghouse, where participating private insurers can review the risk and make offers before Citizens writes or renews it. A 2026 law, CS/CS/SB 1028, amended the clearinghouse statute and added clearinghouses for commercial risks. The 20% test for personal lines stayed in place.

Home value limits

Section 627.351(6)(a)3. bars Citizens from insuring a home with a dwelling replacement cost of $700,000 or more, or a condo unit with a combined dwelling and contents replacement cost of $700,000 or more. In counties OIR finds lack a reasonable degree of competition, the limit is $1 million. The Senate’s 2026 analysis identifies those counties as Miami-Dade and Monroe. For Lakeland and the rest of Polk County, the limit is $700,000.

Underwriting rules

Citizens has its own underwriting requirements on top of the statute. It requires a 4-point inspection on homeowners applications for homes more than 20 years old, and roofs older than 25 years (shingle) or 50 years (tile, slate, clay, concrete or metal) need documentation of at least five years of remaining useful life.

One more condition to know about: section 627.351(6)(aa) requires Citizens personal lines policyholders with wind coverage to carry flood insurance. It has applied in FEMA special flood hazard areas since 2023 and is being phased in elsewhere by dwelling replacement cost. As of January 1, 2026, it applies at $400,000 and up, and on January 1, 2027 it extends to all other personal lines residential policies, with exceptions for condo unit owner policies and policies without wind coverage.

How Citizens takeout offers (depopulation) work

Depopulation is how Citizens moves policies back to private insurers. Insurers approved by OIR identify Citizens policies they want to assume, and Citizens sends you and your agent a packet comparing the offer with your estimated Citizens renewal.

The packet contains one of two forms:

1. Policyholder Depopulation Form. The offer makes you ineligible to stay with Citizens, because it’s for comparable coverage at a premium not more than 20% above your estimated Citizens renewal premium. You’ll choose among the private offers.
2. Policyholder Choice Offer Form. The offer is more than 20% higher, so you’re eligible to stay. You can keep Citizens or accept a private offer.

Register your choice by the date on the form, through your agent or Citizens’ online choice page. Citizens says that if you don’t register a choice by the deadline, it will assign your policy to the private company that offered the lowest premium. Citizens also says there is no longer a 30-day window to return after an assumption: once the policy transfers, the transfer is final.

Section 627.3517 protects your right to keep your current agent through a takeout, as long as the agent is licensed and appointed.

The cost of staying: surcharges and assessments

Citizens policyholders carry a risk private policyholders don’t carry in the same way. Under section 627.351(6)(b)3., if Citizens’ board finds a projected deficit, it must levy a Citizens policyholder surcharge of up to 15% of premium on all Citizens policyholders. Any deficit left after that is recovered through emergency assessments. Factor that into any “Citizens is cheaper” comparison.

How to leave Citizens for a private insurer

You don’t have to wait for a takeout offer. Here’s the usual process:

1. Pull your Citizens declarations page and renewal date.
2. Get a current 4-point inspection if the home is more than 20 years old, and a wind mitigation report on the current OIR-B1-1802 form.
3. Gather roof documentation: covering type, year of last full replacement and permit.
4. Have an independent agent shop authorized insurers and compare coverage line by line, not only premium. Check deductibles, roof payment terms and whether the policy is admitted or surplus lines.
5. Line up the new policy’s effective date with your Citizens cancellation so there’s no gap, and notify your mortgage company.

Our Florida homeowners insurance guide explains what private underwriters look for, and our guide to lowering your home insurance premium covers ways to make your home more attractive to carriers.

What to have ready before you request a quote

• Your current Citizens declarations page and any depopulation packet
• Year built, square footage and construction type
• Roof type, age and permit
• 4-point inspection (if over 20 years old) and wind mitigation report
• Five years of claims history
• Your mortgage company’s information

Want a baseline first? Our free Citizens estimate tool calculates a non-binding HO-3, HO-4 or HO-6 estimate from Citizens’ published rating rules. Then request a quote and a licensed agent will compare private options against it. You can also see the carriers we represent or read about our homeowners coverage.