The Complete Guide to Florida Citizens Property Insurance
Citizens Property Insurance Corporation is Florida state-backed insurer of last resort. If you cannot find coverage in the private market, Citizens must offer you a policy. Here is what you need to know.
What Is Citizens Insurance?
Citizens is a not-for-profit, tax-exempt government entity created by the Florida Legislature. It provides property insurance when private insurers are unwilling or unable to provide coverage.
Who Qualifies for Citizens?
You may qualify for Citizens if:
- You cannot find private insurance
- Private quotes are more than 20% higher than Citizens rates
- You meet property eligibility requirements
Property Requirements
- Property must be in Florida
- Residential properties, condos, mobile homes, and some commercial properties eligible
- Must meet building code requirements
- Some properties with condition issues may not qualify
Types of Citizens Policies
Personal Lines Account
Covers primary residences, including:
- Homeowners policies
- Dwelling fire policies
- Condominium unit-owner policies
- Mobile home policies
Commercial Lines Account
Covers commercial residential properties like apartment buildings.
Coverage Options
Citizens offers similar coverage to private insurers:
- Dwelling coverage
- Personal property coverage
- Liability coverage
- Additional living expenses
- Optional flood coverage through NFIP
Costs and Rates
Despite being the insurer of last resort, Citizens is not always the cheapest option:
- Rates are set by law and regulated
- No profit margin, but also no flexibility
- Rates can increase annually (capped at certain percentages)
- Surcharges may apply after major losses
The Assessment Risk
This is important: If Citizens has insufficient funds to pay claims after a major hurricane, they can assess policyholders of all Florida insurers. This means:
- Even if you do not have Citizens, you could pay a surcharge
- Assessments can be up to 45% of your premium
- Assessments can last for years
Depopulation Programs
Citizens actively tries to move policyholders to private insurance through takeout programs:
- Private carriers may offer to take over your policy
- You can accept or reject takeout offers
- Rejecting takeout may affect future rates
- Takeout companies must be approved by the state
Applying for Citizens
- Work with a licensed agent (like us)
- Agent obtains quotes from private market first
- If no affordable private options, agent applies to Citizens
- Citizens reviews application and property
- Inspection may be required
- Policy is issued if approved
Tips for Citizens Policyholders
- Continue shopping the private market annually
- Improve your property to qualify for private insurance
- Maintain your property to avoid cancellation
- Understand your hurricane deductible
- Consider flood insurance separately
Need help with Citizens or exploring private options? Contact Anchor & Atlas Insurance for assistance.
