Citizens Ins

1) What is Citizens Property Insurance?
Citizens is Florida’s state-backed insurance company created to provide coverage when homeowners cannot obtain insurance in the private market.

2) Why am I insured with Citizens?
Most homeowners are placed with Citizens because:
Private carriers declined coverage
The home is considered higher risk
There were limited market options at the time of purchase

3) What is a Depopulation Letter?
A depopulation letter is a notice informing you that a private insurance company has been approved to take over your Citizens policy.
This process is part of Florida’s effort to move policies from Citizens back into the private market.

4) Why is Citizens depopulating policies?
Citizens is designed to be the “insurer of last resort.”
The state wants more policies insured by private companies to reduce financial risk to taxpayers.

5) Am I required to move to the new insurance company?
Possibly. If the new private carrier’s premium is:
Not more than 20% higher than your Citizens renewal premium, you are generally required to accept the new policy.If it exceeds 20%, you may have the option to remain with Citizens.

6) How do I know if the new premium is within 20%?
The depopulation letter usually shows:
Your current Citizens renewal premium
The new private carrier premium
The percentage difference
Your agent can confirm the calculation.

7) What happens if I ignore the letter?
If the new premium qualifies under the 20% rule and you do not respond:
Your Citizens policy may automatically be non-renewed
Coverage may transfer to the private carrier
Always review the letter immediately.

8) Can I shop other insurance companies?
Yes. Even if you receive a depopulation letter, you can:
Shop other private carriers
Compare coverage and pricing
Choose another company if available

9) Is the new private company financially stable?
Depopulation companies are approved by:
Florida Office of Insurance Regulation (OIR)However, private carriers do not have the same state-backed structure as Citizens. It is important to review:
Financial rating
Coverage differencesDeductibles

10) Will my coverage change?
Possibly.Differences may include:
Roof settlement terms
Water damage limitsLiability limits
Deductibles
Endorsements
Never assume coverage is identical — review carefully.

11) Will my hurricane deductible change?
It might.Private carriers may:
Require higher hurricane deductibles (2%, 5%, etc.)
Structure deductibles differently than Citizens
Always verify before accepting.

12) What if I don’t want to move to the private carrier?
If the premium is more than 20% higher, you may remain with Citizens.If it is within 20%, state rules may require you to move unless you find another qualifying policy.

13) Will my escrow account be affected?
Yes, possibly.If the premium increases:
Your mortgage escrow payment may increase
You could receive an escrow shortage notice
Always notify your mortgage company of any carrier change.

14) What should I do after receiving a depopulation letter?
Contact your insurance agent immediately.
Review the new premium and coverage.
Compare other market options.
Confirm deductible and coverage differences.
Make a decision before the deadline.

15) Is moving to a private carrier good or bad?
It depends.
Pros:
Potentially broader coverage optionsAccess to endorsements
More flexibility
Cons:
Higher premium
Stricter underwriting
Less state backing compared to Citizens
Each situation should be reviewed individually.