Citizens Insurance, Florida’s state-backed insurer of last resort, has successfully moved approximately 355,000 policies off its books this year, with a significant portion of these homeowners transitioning to private insurance companies. This aggressive "takeout" strategy aims to reduce the financial exposure of Citizens and, by extension, Florida taxpayers.
Key Takeaways
- Citizens Insurance has moved about 355,000 policies this year.
- 42% of these homeowners have transitioned to private insurers.
- The insurer’s policy count has dropped significantly from 1.4 million to around 482,570.
- Homeowners may face premium increases, impacting those on fixed incomes.
- Lawsuit reforms are credited with stabilizing the market and increasing competition.
The Takeout Process and Homeowner Impact
Citizens Insurance is actively working to reduce its policy count, which has dramatically decreased from 1.4 million policies a couple of years ago to just over 482,570. This depopulation effort involves issuing "takeout" notices to policyholders, encouraging or requiring them to move to private insurers. While the goal is to lessen financial risk for the state, the transition can present challenges for homeowners.
Ramsay MacLeod, a homeowner in Lake Worth Beach, shared her experience of receiving a takeout notice from Slide Insurance. Although the new premium increase was capped at 20% over her current Citizens rate, the financial impact was substantial. "I’m on a budget, a fixed income, and for me to get hit with an increase that I have to come up with almost $4,000 by February of next year just to still have insurance coverage. That’s a big blow for me," MacLeod stated.
Market Stabilization and Future Outlook
Mark Friedlander of the Insurance Information Institute highlighted that recent lawsuit reforms in Florida have played a crucial role in stabilizing the insurance market and fostering increased competition among private insurers. "Citizens cannot depopulate without a stable private market," Friedlander explained. This improved market condition now offers homeowners more choices than they had previously.
"You have options now. Even a year ago, you may have had zero options other than accepting the takeout. Now you can shop it. … Many don’t realize, the market is much better," Friedlander added. Citizens Insurance plans to continue issuing takeout offers in 2026 as it pursues its goal of further reducing its policy count.