In Florida, many homeowners are familiar with Citizens, often considered the state’s insurer of last resort.
If your policy is selected for “depopulation,” it means a private carrier is offering to take over your coverage. This is part of an effort to move policies into the private insurance market.
If you receive a notice, it’s important to:
- Review the new policy carefully
- Compare coverage and pricing
- Speak with your agent before making a decision
Ignoring these notices can limit your options.
What is Citizens Property Insurance?
Citizens Property Insurance Corporation serves as a safety net for Florida homeowners. It is designed to provide insurance for property owners who are unable to find coverage in the standard, private market. Because of this unique role, it acts as the state’s insurer of last resort.
Why Does Depopulation Happen?
Because Citizens is meant to be the insurer of last resort, the state actively works to reduce the number of properties it covers. This is part of an effort to move policies into the private insurance market to help stabilize the broader insurance economy.
Transitioning Carriers: Why Increasing Your Liability Coverage Is Strongly Recommended
Switching to a new insurance company can be a great opportunity to reassess your coverage—not just your premium.
When reviewing your policy, consider:
- Increasing liability coverage (e.g., from $100K to $300K) to better protect your assets
- Reviewing medical payments coverage
- Confirming protection for personal belongings
- Ensuring your standard homeowners insurance includes the endorsements you need
Lower premiums can be attractive, but strong coverage is what protects you when it matters most.
Frequently Asked Questions
Why is my policy being transferred to a private carrier?
Because Citizens is meant to be the insurer of last resort, the state actively uses “depopulation” to reduce the number of properties it covers. Transferring policies back to private carriers helps stabilize the broader Florida insurance economy.
Do I have to accept the private carrier’s offer?
You typically have options, but ignoring the notice is a mistake that could limit them. It is highly recommended to speak with your insurance agent immediately to compare the new coverage, review pricing, and make an informed decision before the state’s deadline.
Should I adjust my coverage limits when switching from Citizens to a private carrier?
Yes, transitioning carriers is the perfect time to reassess your overall protection. It is strongly recommended to review medical payments, confirm protection for personal belongings, and consider increasing your liability coverage (for example, from $100K to $300K) to better protect your personal assets.
