What You Need to Know About Citizens Insurance in Florida

If you have a Citizens Insurance policy or recently got a quote, you might be wondering if it’s the right choice for you. Here’s the truth: Citizens doesn’t want you as a client.

That’s not to say they don’t offer coverage, but Citizens was designed as Florida’s insurer of last resort—not the biggest insurer in the state. Typically, Citizens maintains 300,000 to 500,000 policies, but by January 2023, that number skyrocketed to 1.2 million.

Why Does This Matter?

Because Citizens protects itself with built-in assessments that allow them to bill policyholders up to 15% more if they experience a financial deficit. While they’ve only issued smaller assessments in the past, they’re now in uncharted territory with over a million policies, making future assessments a real possibility.

If your insurance agent only gave you a Citizens quote, here are three questions you should ask:

1️⃣ What’s the next best rate available?

2️⃣ How many companies do you represent?

3️⃣ Why was Citizens recommended over other options?

Now, you may be asking yourself, “What’s wrong with Citizens?” Let’s break it down.

Three Things Citizens Policyholders Need to Know

If you’re currently insured by Citizens, here are three key things that could impact your coverage and costs:

1. Depopulations: You May Be Moved to Another Insurer Without Your Input

Florida has over 60 different insurance companies writing policies, and Citizens has contracts with about a dozen of them. If you meet their guidelines and the new rate is within 20% of your current Citizens rate, you will automatically be moved.

Here’s where it gets tricky:

📩 If you don’t respond to their depopulation letter, you’ll be switched automatically! For example, if Citizens offers to keep you at $2,000 per year, but another carrier offers $7,000—and you don’t respond—you’ll be transferred to the higher-priced policy without notice.

⚠️ Citizens is doing multiple rounds of depopulations, so you constantly need to check your mail and emails for notifications.

2. New Flood Insurance Requirements for ALL Citizens Policies by 2027

You may think, “I’m in Flood Zone X, so this doesn’t apply to me.” Unfortunately, it does. By 2027, every Citizens policyholder (except condo owners) must carry flood insurance—even if your home is in a low-risk area.

If you don’t already have flood insurance, now is the time to plan ahead and factor this additional cost into your budget.

3. The Primary Residence Form – Avoid a 48% Rate Hike!

Starting in 2024, Citizens received approval for rate increases of up to 48% for homes that are not homesteaded or are used as short-term rentals.

If you live in your home full-time or rent it annually, you need to make sure you’ve signed and submitted the Primary Residence Form with proper verification. Otherwise, you could see a massive rate increase at renewal.

What Questions Should You Be Asking Your Insurance Broker?

If you currently have a Citizens policy, it’s time to have a conversation with your broker. Here are the key questions to ask:

✔ When will I be affected by the flood insurance requirement?

✔ Will you notify me of any depopulation changes or potential transfers?

✔ Do you have everything you need to ensure I qualify for the primary residence rate?

✔ Do you have other options available besides Citizens?

Upcoming Rate Increases for Citizens Policyholders

Citizens usually offers lower rates than private carriers, which is why so many homeowners opt for their policies. But this is changing:

🔺 In June 2024, Citizens’ board approved a 14% rate increase, pending approval from Florida regulators.

🔺 For 2025, the proposed increases are:

• 14% for primary residences (owner-occupied or tenant-occupied rentals)
• 48% for second homes or short-term rentals

These changes make it even more important to explore your options before you get hit with unexpected rate hikes.

Next Steps: Have Your Policy Reviewed

If you’re unsure about your Citizens policy, potential rate increases, or alternative options, now is the time to take action.

📞 Contact Tiffany Firlik at Triton Agency at (813) 948-5990

📩 Email us at FrontDesk@Tritonagency.com

We’re happy to review your policy and help you determine the best course of action—before these changes impact your coverage and your wallet.

👉 Don’t wait until renewal—plan ahead and make sure you’re in the best possible position for the future.