Glossary · Insurance

Citizens Insurance

Florida Real Estate Glossary entry. Definition, examples, and how this term applies to NE Florida transactions.

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Definition
Citizens Property Insurance Corporation is Florida's state-backed insurer of last resort. It insures properties that cannot get coverage from private carriers, typically due to coastal exposure, prior claims history, or older construction. Citizens currently insures over 1.4 million Florida properties — about 17% of the state's homeowners policies. Premiums vary but Citizens cannot refuse coverage based on standard risk factors that private insurers reject.

What Citizens is

Citizens Property Insurance Corporation is a state-created not-for-profit insurance entity. It was established by the Florida Legislature in 2002 to provide homeowners insurance to property owners who cannot find coverage in the private market or who can only find private coverage at premiums substantially higher than Citizens' rates. Citizens is governed by a board appointed by the Governor and state cabinet.

Why so many Floridians use it

Florida's private insurance market has been under strain since the 2017-2018 hurricane seasons and especially after Hurricane Ian's 2022 impact in Southwest Florida. Several private carriers have left Florida entirely. Others have non-renewed policies in coastal ZIP codes or for older homes. Citizens fills the gap. Citizens' market share has grown from roughly 4% of policies in 2018 to over 17% in 2026, with over 1.4 million active policies.

How premiums compare

Citizens premiums are set by Florida statute and cannot exceed certain caps relative to private market rates. In practice, Citizens premiums in NE Florida typically run comparable to or slightly above private market rates when private coverage is available. Citizens cannot refuse coverage based on standard risk factors that private insurers commonly reject (older roofs, prior claims, coastal exposure within statutory limits). Citizens may still decline coverage in certain extreme-risk scenarios.

Required private market check

Florida law requires that before getting Citizens coverage, you must first attempt to obtain private market coverage and document the rejections or quotes received. If you can get private coverage at less than 20% above Citizens' rate, you are required to take the private policy. The intent of this rule is to keep Citizens as a true last resort, not a default first option.

Coverage and claims

Citizens provides similar coverage to private market homeowners insurance — dwelling, other structures, personal property, loss of use, liability, medical payments. Hurricane and wind coverage is included. Flood coverage is separate (through NFIP, not Citizens). Citizens claims service has been a point of criticism historically. Many policyholders work with public adjusters or attorneys when filing major hurricane claims.

Common questions.

How do I get Citizens Insurance in Florida?
You can apply through any Florida-licensed insurance agent. Citizens does not sell directly to consumers. The agent will document your private market quotes and rejections, then submit the Citizens application on your behalf. Most applications are processed within 7-14 days.
Is Citizens Insurance cheaper than private market?
Sometimes yes, sometimes no. Citizens premiums are statutorily limited but can still be substantial in high-risk coastal ZIP codes. In some NE Florida ZIP codes, Citizens runs below private market quotes. In others, private carriers can match or beat Citizens for specific risk profiles. Always shop both before committing.
How many Florida homes use Citizens Insurance?
Citizens insures over 1.4 million Florida properties as of 2026, representing approximately 17% of the state's homeowners insurance market. The number has grown substantially since 2018 as private carriers exited Florida or restricted underwriting.
Does Citizens cover hurricane damage?
Yes. Citizens homeowners policies include hurricane wind coverage, subject to a separate hurricane deductible (typically 2%, 5%, or 10% of dwelling coverage). Flood damage is not covered by Citizens or any homeowners policy. Flood coverage requires a separate NFIP policy or private flood insurance.
Will Citizens drop me after a claim?
Citizens cannot non-renew a policy solely because of one claim, but policies can be non-renewed for accumulated risk factors or major underwriting issues. Citizens has historically been less aggressive in dropping policyholders post-claim than some private carriers, though policy terms can change.
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