Florida Insurance Guide
Citizens Insurance vs. Private Market in Florida
Citizens Property Insurance is Florida's insurer of last resort. But is it your best option? This guide compares Citizens with private market carriers so you can make an informed decision in 2026.
Background
What Is Citizens Property Insurance?
Citizens Property Insurance Corporation is a state-backed entity created by the Florida Legislature in 2002 to provide property insurance coverage to Florida homeowners who cannot obtain coverage in the private market. Citizens is not a private insurance company — it is a governmental entity that operates as the insurer of last resort.
As of 2026, Citizens insures approximately 1.1 million policies in Florida, a significant decrease from its peak of 1.4 million in 2023 as the private market has stabilized and more carriers have returned to Florida. The legislature's mandate is for Citizens to reduce its exposure by transferring policies to the private market whenever possible.
1.1M
Active policies in 2026
$700K
Maximum coverage limit
20%
Clearinghouse threshold for takeouts
Detailed Comparison
Citizens vs. Private Market: Full Comparison
| Feature | Citizens | Private Market | Winner |
|---|---|---|---|
| Coverage Limit | $700,000 max (residential) | Up to full replacement cost | Private |
| Policy Stability | Subject to mandatory takeouts | Carrier of your choice | Private |
| Rate Increases | Legislature-controlled; rising toward actuarial rates | Market-based; stabilizing in 2026 | Tie |
| Coverage Options | Standard HO-3 / HO-6; limited endorsements | Broader endorsements, higher limits, custom coverage | Private |
| Claims Service | State-managed; variable response times | Carrier-specific; often faster for smaller claims | Private |
| Storm Assessment Risk | Yes — policyholders can be assessed after a major storm | No assessment risk | Private |
| Availability | Available statewide as insurer of last resort | Varies by county, zip code, and property characteristics | Citizens |
| Price | Competitive in some markets; rising toward actuarial rates | Competitive in 2026; shop multiple carriers | Tie |
When Does Citizens Make Sense?
Citizens may be your best option if:
- You cannot find coverage in the private market
- Private market quotes are more than 20% more expensive than Citizens
- Your property has characteristics that private carriers decline (old roof, claims history)
- You need immediate coverage and don't have time to shop
Consider the private market if:
- Your property is worth more than $700,000 (Citizens limit)
- You want broader coverage or higher limits
- You are concerned about Citizens assessments after a storm
- Private market quotes are within 20% of Citizens
- You want to choose your carrier and not be transferred
The Citizens Assessment Risk
If Citizens has a deficit after a major storm, it can assess all Citizens policyholders — and potentially all property insurance policyholders in Florida — to cover the losses. Historical assessments have reached as high as 45% of the annual premium. This risk does not exist with private market carriers.
Practical Guide
How to Get Off Citizens Insurance
Contact an independent agent
An independent agent can shop multiple carriers simultaneously. Unlike captive agents (who sell only one brand), independent agents have access to dozens of carriers and can identify which ones are actively writing in your area.
Get your wind mitigation report
If your home has wind mitigation features (impact windows, hip roof, opening protection), a wind mitigation report can significantly reduce your premium in the private market. The OIR-B1-1802 form is accepted by all admitted Florida carriers.
Consider replacing your roof if it's over 15 years old
Many private carriers require roofs under 15 years old. If your roof is approaching that threshold, replacing it can significantly open up your private market options and reduce your premium.
Compare Citizens and private market quotes
Once you have private market quotes, compare them to your Citizens premium. If the private market quote is within 20% of Citizens, the Citizens Clearinghouse may transfer you anyway. If it's more than 20% more expensive, you can remain with Citizens.
Frequently Asked Questions
Citizens vs. Private Market: Common Questions
Is Citizens Insurance good coverage?
Citizens Property Insurance provides legally required minimum coverage and is a legitimate insurer of last resort. However, it has several limitations compared to private market policies: lower coverage limits (currently capped at $700,000 for most residential policies), mandatory participation in the Citizens Clearinghouse (which can result in involuntary policy transfers to private carriers), and potential exposure to assessments if Citizens has a deficit after a major storm. For many Florida homeowners, Citizens is an acceptable option — but it should not be the default choice if private market alternatives are available at a comparable price.
Can I be forced off Citizens Insurance?
Yes. Florida law requires Citizens to transfer policies to private market carriers through the Citizens Clearinghouse if a private carrier offers coverage within 20% of the Citizens premium. This is called a 'takeout.' If your policy is selected for a takeout, you will receive a notice and have the option to remain with Citizens only if you actively opt out. Many homeowners have been surprised to find their policy transferred to a carrier they did not choose.
What is the Citizens Insurance coverage limit in 2026?
As of 2026, Citizens Property Insurance has a coverage limit of $700,000 for most residential properties (single-family homes, condos, and renters). High-value properties above this threshold cannot be insured by Citizens and must use the private market or surplus lines carriers. The $700,000 limit applies to the dwelling coverage (Coverage A), not the total policy value.
How do I get off Citizens Insurance in Florida?
To move from Citizens to a private market carrier, contact an independent insurance agent who can shop multiple carriers simultaneously. In 2026, more private market carriers are writing in Florida than in 2022–2023, so there are more options available. Key factors that affect your ability to find private market coverage include your roof age (carriers prefer roofs under 15 years), wind mitigation features, flood zone, and claims history. An independent agent can identify which carriers are actively writing in your area and at what price.
Is Citizens Insurance cheaper than private insurance in Florida?
Not always, and not necessarily by much. Citizens rates have increased significantly since 2022 as the legislature required Citizens to move toward actuarially sound rates. In many South Florida markets, private carriers are now competitive with or cheaper than Citizens — especially for properties with good wind mitigation features. The only way to know is to get quotes from both Citizens and private market carriers through an independent agent.