Citizens Property Insurance: Who Qualifies and What to Do With a Takeout Offer

Citizens Property Insurance Corporation is Florida's state-created insurer of last resort. Under state law, a primary residence is eligible for Citizens only if no authorized private insurer offers comparable coverage at a premium that is not more than 20 percent above Citizens' premium for comparable coverage. The same test applies to a new application and, for policies renewing on or after April 1, 2023, to a Citizens renewal. When Citizens sends a policyholder a private insurer's takeout offer (Citizens calls the letter a Policyholder Choice Offer or Policyholder Depopulation Offer), an offer within 20 percent means you cannot stay with Citizens. An offer more than 20 percent higher means you may stay, but you must choose to; if you do not respond by the deadline, the policy moves to the private insurer (s. 627.351(6)(c)5., Fla. Stat.; Citizens).

Last updated November 4, 2026. Facts checked November 2, 2026 against the sources at the end of this page.

At a glance

Who qualifies for a Citizens policy

Citizens' own answer for a new applicant: you are eligible if no comparable private-market offer is received, or if the offers received are more than 20 percent higher than a comparable Citizens policy. You are ineligible if at least one comparable private offer is within 20 percent of a comparable Citizens policy. Every risk is also subject to Citizens' underwriting guidelines (Citizens FAQ, updated August 26, 2026).

The statute adds details:

• Primary residences and other homes are tested slightly differently. For a home that is not a primary residence, the offer can come from an authorized insurer or from an approved surplus lines insurer as part of its take-out plan. For renewals of such homes the test applies from policies renewing on or after July 1, 2024 (s. 627.351(6)(c)5.b.).
• If you cannot get an offer, you are eligible. The risk is eligible for a standard policy including wind coverage or a basic policy including wind coverage from Citizens.
• The comparison has to be like for like. It is based on reasonably comparable forms and coverages: the same Coverage A or other building limits, the same percentage hurricane deductible, the same percentage of ordinance and law coverage, the same mitigation credits, and the same method of loss payment (replacement cost or actual cash value), where both offer them. Premium includes any surcharge or assessment actually applied to the policy. If an insurer will not break its premium down by coverage when asked, Citizens may treat the offer as not an offer of coverage (s. 627.351(6)(c)5.d.).

Worked example: the 20 percent line

Made-up numbers. Citizens' renewal premium for comparable coverage is $4,000. "More than 20 percent greater" means more than $4,800.

The outcome turns on a comparison of like coverages, which is why the letter comes with a worksheet. Citizens says the 20 percent rule "protects you from substantial premium increases" (Citizens).

What a takeout (depopulation) offer is

Depopulation is how policies move from Citizens to private insurers. State law requires Citizens to publish a schedule of cycles in which an insurer may identify the policies it wants to take out, and to give the agent of record a list of insurers requesting each policy (s. 627.351(6)(ii)1.-2.). When you are selected, Citizens sends you the offer letter. Citizens states that it has moved more than 900,000 policyholders to private insurers since 2023 (Citizens, June 3, 2025).

What to do when an offer arrives

1. Open it and find the deadline. The letter has the details; Citizens says to read it carefully because it affects your coverage (Citizens).
2. Find out which side of 20 percent you are on. The letter says whether you are eligible to stay. Citizens' FAQ adds that if the offer is within 20 percent you may still confirm the offer by following the same steps, but staying with Citizens is not an option (Citizens FAQ).
3. If you can stay and want to, say so before the deadline. You or your agent must respond to the letter and indicate your choice. Citizens says that failing to respond results in the policy being transferred to a private insurer (Citizens).
4. Compare the coverage, not only the premium. The letter includes coverage worksheets for each private offer. Look at the dwelling limit, the hurricane deductible, the roof settlement terms, water damage limits and the flood requirement. Our guides explain hurricane deductibles and roof age and roof settlement.
5. Add up the whole cost. Citizens requires flood insurance on its policies, and a private insurer is not required to ask about flood insurance when it decides whether to offer you coverage. Citizens points out that a private offer that looks more expensive than your Citizens policy may cost less once the separate flood policy Citizens requires is counted (Citizens).
6. Ask your agent. Your agent can check your policy and the worksheet and explain what each option means before the deadline.

Citizens' own FAQ lists reasons it gives for moving: policyholders could pay up to a 15 percent surcharge on top of their annual premium after a major deficit, plus emergency assessments of up to 10 percent a year, and private policies may be more comprehensive (Citizens FAQ). Those are Citizens' statements; whether they matter to you depends on the actual offer.

After a private insurer takes over (assumption)

When another insurer assumes your policy, your Citizens premium and coverage stay as they are until the policy term ends, and the policy stays on Citizens' forms through the end of the term (s. 627.351(6)(c)5.a.). Before renewal you get an offer from the private insurer. The 20 percent rule applies again: if its renewal premium is more than 20 percent above Citizens' comparable premium, you can renew with Citizens; if the offer is within 20 percent, you cannot go back to Citizens, even if you decline the private offer (Citizens). By statute, a policyholder removed from Citizens through an assumption agreement does not remain eligible after the end of the policy term.

Citizens questions

Talk to an agent

Bring us the letter and your declarations page. Your agent can check your policy and explain how the private offer compares, before your deadline.

More Florida homeowner guides

• All Florida insurance guides
• Flood insurance in Florida
• Hurricane deductibles
• Roof age and home insurance
• Home insurance non-renewal in Florida
• Buying a home in Florida: insurance checklist
• Homeowners insurance in Florida

Local pages that discuss Citizens letters and non-renewals: Kendall and all areas we serve.

Sources