What is Citizens Insurance and why do so many Florida homes use it?

If you’re shopping for homeowner’s insurance in Florida and see “Citizens” mentioned, you’re not looking at a regular private insurer. Here’s what you need to know.

What is Citizens Property Insurance?

Citizens Property Insurance Corporation is Florida’s state-backed insurer of last resort. It was created by the Florida Legislature to provide coverage to homeowners who can’t find affordable insurance in the private market.

Citizens is not a traditional insurance company. It’s a quasi-governmental entity, and its policies are backed by Florida’s taxpayers through a potential assessment mechanism — meaning if Citizens runs out of money after a major hurricane, Florida policyholders (including people insured by private companies) can be assessed a surcharge.

Why do so many Florida homes have Citizens?

Florida’s private insurance market has been in turmoil for years. Since 2020, over a dozen private insurers have gone insolvent or exited the Florida market entirely. This has pushed more and more homeowners into Citizens, even in areas that used to have plenty of private market competition.

Common reasons a home might be with Citizens:

• The home is older (pre-2000 construction), which private insurers increasingly won’t write
• The roof is older than 10–15 years
• The home is in a coastal or high-risk area
• Previous claims history makes private insurers reluctant to write the policy
• The private market quotes are so high that Citizens is cheaper (Citizens has rate caps)

Should you be worried if a home you’re buying is on Citizens?

Not necessarily — but it’s worth understanding a few things:

1. Citizens has eligibility requirements. To qualify for Citizens, you generally can’t be insurable in the private market for less than 20% more than the Citizens rate. If you’re buying a home that’s currently on Citizens, a private insurer may still be willing to cover you.

2. Citizens has coverage limits. Citizens does not offer the same breadth of coverage as some private policies. Notably, Citizens doesn’t offer “Replacement Cost Value” for personal property by default.

3. Citizens has a depopulation program. Citizens actively tries to move policies back to the private market when private carriers are willing to take them. If you’re on Citizens, a private insurer may offer to take over your policy — you have the right to accept or decline.

4. You can keep Citizens if you qualify. If the private market won’t cover you at a reasonable price, Citizens remains an option.

How do you find out what insurance will actually cost?

Get insurance quotes before you make an offer, or at minimum include a sufficient inspection/insurance contingency period. Florida’s insurance market is unusual enough that you should treat insurance costs as part of your affordability calculation.

Have more questions? Browse our full FAQ library or get your free Florida Home Buying Guide.