Last checked against the Florida Statutes and official sources on October 25, 2026. This is general information, not legal advice.
Citizens insurance depopulation moves selected policies to private insurers through an approved takeout process; it does not mean Citizens is leaving Florida. For the personal-lines homeowners process discussed here, an offer no more than 20% above Citizens' estimated renewal premium for comparable coverage makes the policy ineligible to remain, and any available choice must be registered by the deadline in the offer packet.
Is Citizens insurance leaving Florida?
No. Citizens describes depopulation as a program offering private-market coverage to its policyholders, with eligible customers able to choose to remain. OIR's takeout page lists approved companies and assumption dates. Those materials describe transfers of selected policies, rather than the closure of Citizens (Citizens, Personal Lines Depopulation Program; Florida OIR, Take-Out Companies).
Citizens' role and a state guarantee are also different questions. The statutory application warning expressly says Citizens is not supported by Florida's full faith and credit. Statutory surcharges and assessments are funding mechanisms, not a promise that the state's general resources guarantee every claim (section 627.351(6), Florida Statutes).
For a homeowner receiving a letter, the immediate task is to identify the policy, available offers and deadline. A statewide headline cannot tell you whether your individual policy can stay. This article focuses on personal-lines homeowners takeout choices; commercial properties and other eligibility categories require their own program review.
What are takeout, depopulation and assumption?
Depopulation is the program. A takeout company is a private insurer participating in it. Assumption is the transfer of the selected policy to that company on the specified date. OIR requires participating companies to submit information supporting their financial resources and business plans; approval orders specify eligible removals, assumption dates and any additional conditions (Florida OIR, Take-Out Companies).
Citizens supplies coverage worksheets and estimated renewal premiums for the available offers and its own policy. The choice deadline, assumption date and policy expiration date serve different purposes. Put all three on a calendar and keep the packet with your declarations page. Do not treat a renewal estimate as an immediate invoice.
How does the Citizens 20% rule work?
The comparison uses Citizens' estimated renewal premium for comparable coverage, rather than simply the premium you paid last year. Citizens explains that an offer within the 20% threshold makes the policy ineligible to remain. For primary-residence personal-lines risks, the statute uses a more-than-20% test for price-based eligibility at renewal (section 627.351(6)(c)5.a., Florida Statutes).
Here is a hypothetical comparison, not a quote: assume Citizens' estimated renewal premium is $3,000 and the private offer provides comparable coverage.
| Private offer | Difference from $3,000 | Effect of the price test |
|---|---|---|
| $3,300 | 10% higher | Does not permit remaining with Citizens |
| $3,600 | Exactly 20% higher | Does not permit remaining with Citizens |
| $3,750 | 25% higher | May permit remaining, subject to other eligibility requirements and a timely choice |
If there are several offers, review every one. An offer above the threshold does not cancel the effect of another qualifying offer within it. Confirm the eligibility shown in the packet with the agent, especially if an offer appears to use different coverage limits or deductibles.
The threshold is an eligibility rule. It is not a universal cap on future premium increases, and it does not mean an insurer may immediately add 20% to the premium during assumption.
What happens if you ignore the depopulation letter?
Citizens says that if a choice is not registered by the date on the offer form, it assigns the policy to the private company offering the lowest estimated premium. That default applies even when the policyholder could have elected to stay. Eligible homeowners must actively register their decision (Citizens, Personal Lines Depopulation Program).
Choices can be submitted online or through the agent. Citizens also states that there is no longer a 30-day post-assumption period for changing your mind and returning. Keep a saved registration record, and ask the agent for documentation when the agent submits the choice. Do not assume silence preserves Citizens coverage.
Sometimes an assumption does not occur. Citizens says it sends a letter explaining that the policy remains with Citizens when an accepted offer does not result in transfer. Save that notice too; an offer and a completed assumption are separate events.
What changes at assumption, and what changes at renewal?
Citizens explains that your current premium and coverage remain unchanged through the end of the existing policy term after assumption. Before renewal, the private insurer sends its own offer. Compare that renewal with Citizens' comparable coverage at that time (Citizens, Making the Most of Depopulation with Policyholder Choice).
A private insurer does not have to match Citizens' price to prevent a return based on price. Citizens explains that a comparable private renewal offer within the 20% threshold prevents return at that point; an offer more than 20% higher may allow a return to Citizens through a new-business application, subject to eligibility. Declining an offer within the threshold does not itself create eligibility.
Compare the renewal documents afresh. Check dwelling and contents limits, roof settlement terms, water coverage, deductibles and optional protections. Ask which form or endorsement supports each difference. Do not rely only on the carrier name or the annual premium.
Citizens depopulation factors to review in 2026
Use the official offer and OIR approval record to organize your review:
- Eligibility: Does any comparable offer fall within the 20% threshold?
- Coverage: What differences appear in the worksheets and actual forms?
- Dates: When must you respond, when would assumption occur, and when does the current term end?
- Carrier information: What does OIR's takeout approval and company information show?
- Claims: Which company handles a loss before or after the assumption date?
This is a document-review checklist, not a ranking of insurers or a forecast of premiums. It is more useful for an individual decision than applying a statewide transfer count to your property.
Who handles a claim after a Citizens takeout?
Citizens' program guide distinguishes losses before assumption from those on or after the assumption date. Claims with a loss date on or after 12:01 a.m. on that date go to the takeout company; earlier losses remain Citizens' responsibility. During the assumption period, routine servicing can still run through Citizens. Confirm the claim contact in the transfer documents.
The Citizens property insurance claims guide addresses the separate claim workflow, while the denied or underpaid claim guide addresses payment disputes.
A public adjuster represents the policyholder; an independent adjuster may be hired by the insurer, as DFS explains. The public versus independent adjuster comparison explains those roles.
Keep the coverage and claim records together
Save the packet, registered choice, assumption certificate, renewal offer and any open claim correspondence in one place. A property-insurance lawyer can review a specific claim involving disputed coverage or payment across a transfer.
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