Florida’s state-backed insurer of last resort has sent 45,000 non-renewal notices to homeowners as Citizens Property Insurance Corporation continues reducing its policy count. The move places thousands of customers back into the private market, where brokers will need to secure replacement coverage.
The notices form part of Citizens’ ongoing depopulation program. Policy count peaked at about 1.4 mn in September 2023 and has since fallen to roughly 270,000 following repeated depopulation rounds and improved private-market conditions.
Homeowners receiving the latest letters have about a year to arrange new insurance. That window gives brokers time to compare private-market options, though replacement premiums are often higher than Citizens rates.
Florida law requires Citizens policyholders to accept a private insurer’s offer when the premium sits within 20% of their Citizens price. The rule limits how much more customers must pay before leaving Citizens, but it doesn’t guarantee private coverage at the same price.
Citizens has historically charged less than many private insurers. A homeowner moved out of the state-backed market therefore might face a higher premium even when the private offer complies with the 20% rule.
Michael Peltier, spokesperson for Citizens Insurance, said the latest round of notices points to healthier private-market conditions. He cited increased competition while acknowledging that private insurance often costs more than Citizens coverage.
For brokers, that pricing difference becomes a direct client issue. Homeowners expecting a private insurer to match their Citizens premium will often need to reconsider both price and coverage structure before renewal.
Coverage adequacy creates another concern. North Fort Myers resident James Hembree told WBBH he pays about $3,200 annually for $75,000 of coverage on a home purchased for close to $150,000.
That gap between insured value and property cost gives brokers another issue to address during placement. Moving a customer into the private market creates an opportunity to review whether existing limits still match the home’s current exposure.
Florida’s broader property insurance market has improved compared with conditions seen several years ago. The Florida Office of Insurance Regulation reported an average statewide homeowners premium of $3,815, including wind coverage, based on April data.
Average premiums declined across 51 of Florida’s 67 counties during the first half of 2026, according to the Insurance Information Institute. Twenty-one carriers have also entered the Florida market since legislative changes adopted in 2022 and 2023.
Those new insurers provide brokers with more placement options for customers leaving Citizens. Increased private capacity also supports the state’s effort to move policyholders away from the insurer of last resort.
The legislative changes included restrictions affecting one-way attorney fees and assignment-of-benefit arrangements. Florida officials and insurers had linked those practices to litigation costs and worsening economics for private property carriers.
Florida domestic property insurers posted a combined ratio of about 77% in 2025, according to Guy Carpenter. A relatively quiet hurricane season also supported underwriting results and gave carriers more room to rebuild profitability.
The roughly one-year transition period gives affected homeowners time to review replacement policies before Citizens coverage ends. Brokers will need to manage premium expectations carefully, especially for older homes and properties near the coast.
Those risks often produce the widest difference between Citizens premiums and private-market prices. The latest 45,000 non-renewals therefore represent another major test of whether Florida’s recovering private insurance market has enough capacity to absorb customers leaving the state-backed carrier.
