Citizens Insurance in Florida: Takeouts and How to Decide

Citizens Property Insurance Corporation was never meant to be Florida's largest insurer. It was created in 2002 as the "insurer of last resort" for people who couldn't find coverage in the private market. For most of its history it was a backstop. Then came 2022–2023.

In September 2023, Citizens was carrying roughly 1.4 million policies — about 22% of the entire Florida residential market. Many of those were homes that private insurers had either dropped or refused to quote during the worst of the hurricane and litigation crisis.

Fast forward to late 2026: Citizens is now at about 270,000–280,000 policies. Private carriers absorbed over 585,000 policies in 2025 alone, and another 120,000+ in the first eight months of 2026. If you still have Citizens, odds are good you'll be asked to move at some point in the next 12–18 months — through what's called a takeout offer.

Here's what that means, how to read a takeout offer, and the decisions you'll face.

What is a Citizens takeout offer?

Private insurers can review Citizens' book and offer to "take out" (reinsure, assume) specific policies. When one of them makes an offer on your policy, Citizens notifies you, and you have 30 days to decide:

• Accept the takeout → your policy moves to the private carrier at renewal, typically at a similar or slightly higher premium.
• Decline (keep Citizens) → only possible if the takeout offer is more than 20% higher than your Citizens premium. This is the famous "20% rule."

The 20% rule, explained

Under Florida law, if a private carrier offers to take out your Citizens policy and the premium quoted is within 20% of your Citizens renewal premium, you must accept. You lose eligibility to stay on Citizens.

Example:

• Citizens renewal: $3,000/year.
• Private carrier takeout: $3,500/year. That's 16.7% higher. You must accept. You lose Citizens eligibility.
• Private carrier takeout: $3,750/year. That's 25% higher. You can decline and stay on Citizens.

The 20% ceiling exists so the private market can actually depopulate Citizens over time. It's unpopular with homeowners — nobody enjoys being forced into a 20% premium increase — but it's doing what it was designed to do: shrink Citizens dramatically.

Should I accept a takeout offer?

Honestly, often yes. Here's how we think about it:

Reasons to accept:

1. Citizens is a last-resort market, not a competitive one. Its coverage can be more limited than a well-chosen private carrier.
2. Citizens assessments. If Citizens runs out of money after a catastrophic event, every Florida insurance consumer (not just Citizens customers) can be hit with special assessments. The private carrier doesn't carry that risk.
3. The private market in 2026 is healthier than it was. Rate requests are trending down. Thirty-plus private insurers filed rate decreases in 2025. The "flight to safety" was warranted in 2023; in 2026, less so.
4. If you're on Citizens today, the pool is shrinking. Fewer policies means less diversification and a more concentrated risk pool. Over time, that could pressure Citizens' pricing further.

Reasons to decline (if you can):

1. The takeout carrier isn't rated well. Not all private carriers are equal. Some newer insurers have thin reserves or short track records. Your agent should check Demotech or AM Best ratings.
2. Their coverage is materially worse. Occasionally a takeout policy excludes something Citizens includes. Compare the dec pages, not just the price.
3. You're one renewal away from moving to a specific private carrier you prefer. Sometimes it makes sense to decline, then switch to a different private carrier on your terms.

If the takeout premium is within 20%, you don't have a choice — you accept. But a good independent agent helps you decide the next step: stay with that carrier, or move to a different private carrier at the next opportunity.

I don't have a takeout offer but want to leave Citizens. Can I?

Yes. You can shop private carriers any time and move at renewal. The main reason to want to leave Citizens voluntarily:

• Rates. For many home profiles in Miami-Dade in 2026, private is competitive or cheaper.
• Flood requirement. As of January 1, 2027, Citizens requires flood insurance on every residential policy. If you don't want to buy flood, a private carrier that doesn't require it is one way out. (We still recommend most Florida homeowners carry flood — see our flood guide.)
• Coverage. Citizens tends to have higher wind/hurricane deductibles and some narrower endorsements. Private carriers compete partly on coverage breadth.

The way to leave: give an independent agent your dec page and let us shop. We'll come back in 24–72 hours with 2–4 quotes.

The flood requirement — the big 2027 story

If you remember one thing: starting January 1, 2027, Citizens requires flood insurance on every residential policy with wind coverage. No exceptions for condos with master policies, no exceptions for high floors, no exceptions for inland properties.

• Dwelling (Coverage A) less than $600,000 → required 1/1/2024.
• Less than $500,000 → required 1/1/2025.
• Less than $400,000 → required 1/1/2026.
• All of it → required 1/1/2027.

If you plan to stay with Citizens into 2027, start pricing flood now. If you'd rather leave Citizens because you don't want to buy flood through them, you have about 12 months to shop private.

Carrier assumption notices

Sometimes you'll get a letter not about a takeout offer but about an assumption — meaning your Citizens policy has already been assigned to a specific private insurer, and your next renewal will come from them. This is different: there's no 30-day decision window. The private insurer is simply taking over the policy at renewal.

If you get an assumption notice, use the opportunity: get an independent quote. If the assumed carrier is competitive, stay. If it's not, shop and switch at renewal.

What this means for your next renewal

Three scenarios we see most often:

Scenario 1: You're on Citizens and happy. Just wait and see. You may get a takeout offer in the next 6–18 months. When it comes, call us and we'll help you decide.

Scenario 2: You're on Citizens and the renewal is high. Let us shop private before renewal. In many cases we find a competitive or cheaper option — especially if your home has wind mitigation features (shutters, impact windows, reinforced roof).

Scenario 3: You already got a takeout offer or assumption notice. Send us a copy of the notice and your current dec page. In 24–48 hours we'll tell you whether the new carrier is the best option on the market, or whether there's a better one worth switching to at renewal.

The short version

Citizens is shrinking fast. The private market is competing for your business again. The 20% rule and flood requirement are forcing moves whether you want them or not. Being on Citizens in 2026 isn't automatically bad — but it's worth pricing the alternatives at least once a year.

Call us at (305) 956-7818 or send us a quote request. Takes about 15 minutes of your time; we do the shopping.

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This article was written by the Assure US team and reviewed by Aviva Druin, Agency Principal at Assure US Insurance Agency, before publication. It is informational and does not constitute insurance advice or an offer to bind coverage. Florida insurance law changes frequently — always confirm with a licensed agent before acting. Last reviewed: October 17, 2026.