NATIONAL INSURANCE GUIDE

Citizens Property Insurance

🏠 Citizens Property Insurance Corporation: Florida’s Insurer of Last Resort

Citizens Property Insurance Corporation is a state-backed, not-for-profit insurance company created by the state of Florida to provide property coverage for homeowners and businesses who are unable to find affordable insurance in the private market. It’s known as the insurer of last resort — and for many Floridians, it truly is.

🧩 What Is Citizens and Why Does It Exist?

Founded in 2002 through the merger of two state-run underwriting associations, Citizens was created to ensure that Floridians living in high-risk areas (especially coastal zones) could still access property insurance. When private insurers pull out due to hurricane risk or financial exposure, Citizens steps in to fill the gap.

🌪️ Who Needs Citizens Insurance?

You may be eligible for a Citizens policy if:

You’ve received at least one declination from a private insurer.
Comparable private coverage is 15% or more expensive than Citizens’ quote.
Your home is in a designated high-risk area, such as coastal flood zones or windstorm-prone regions.

📜 Types of Policies Offered

🏡 Personal Lines

HO-3 – Standard homeowners insurance
HO-6 – Condo unit owners
DP-1 / DP-3 – Dwelling property (rental, seasonal)
Mobile Homeowners – For manufactured homes

🏢 Commercial Lines

Commercial Residential (CR-W) – Apartment buildings, condos
Commercial Nonresidential (CNR-W) – Small businesses, offices

💸 Key Coverage Components

Citizens policies are named peril only – meaning they cover specific risks listed in the policy, unlike all-risk policies common in the private market.

Main coverage sections include:

Coverage A – Dwelling structure
Coverage B – Other structures (e.g., sheds, fences)
Coverage C – Personal belongings
Coverage D – Loss of use (temporary housing)
Coverage E – Personal liability

Important features:

Hurricane Deductible: Typically 2%–10% of the dwelling’s insured value
No replacement cost for some older structures or mobile homes
Wind mitigation discounts available with inspection

🚫 What’s Not Covered?

Citizens policies are more limited than private carriers. Exclusions often include:

Flood damage (requires a separate NFIP policy)
Earthquake
Sewer or drain backup (unless endorsed)
Cosmetic or wear-and-tear damage
Extensive mold or water seepage issues

🏚️ Underwriting Restrictions

Citizens may deny coverage if:

Your home is over 60 years old and has not had a full roof replacement
The property fails to meet Florida Building Code standards
You haven’t submitted a valid wind mitigation report

⚠️ Real-World Financial Impact

Citizens is funded by policyholder premiums, investment income, and state reserves. It is not supported by Florida taxpayers directly, but in the event of a massive hurricane or financial shortfall, emergency assessments can be levied on all Florida insurance policyholders – even those insured by private companies.

🧠 Key Insurance Terms to Know

Residual Market – Coverage offered when no private options are available
Depopulation Program – Citizens can transfer your policy to a private insurer
Windstorm Exposure – Elevated risk areas for hurricane or storm damage
Policy Takeout – Your policy is moved to a private carrier if one agrees to assume it

📞 How to Apply

You can only obtain a Citizens policy through a licensed Florida insurance agent. Direct applications are not allowed. Requirements include:

Home inspection or four-point inspection
Wind mitigation report (for possible discounts)
Proof of private market denial or rate quote

💬 What Are People Saying About Citizens Property Insurance?

Citizens Property Insurance serves as Florida’s insurer of last resort, providing coverage to homeowners who cannot find insurance elsewhere. Customer feedback is mixed, reflecting both appreciation for coverage availability and frustration with claims handling.

⭐ “Lifesaver for difficult-to-insure homes”
“After being turned down by several companies, Citizens stepped in and got me coverage quickly.”
— Angela M., Miami, FL

⚠️ “Claims process is slow and frustrating”
“Dealing with claims was a nightmare after hurricane damage. The adjusters were hard to reach, and payouts took too long.”
— Robert K., Tampa, FL

⭐ “Affordable premiums compared to private market”
“My premiums are higher than average, but still better than what private insurers offered me.”
— Linda S., Orlando, FL

⚠️ “Customer service needs improvement”
“Getting answers over the phone was difficult. Communication could definitely be better.”
— Carlos R., Jacksonville, FL

📝 Overall Rating from Customers

⭐ 3.2 out of 5 (Average based on homeowner reviews in Florida)

👍 Highlights:

Provides coverage for high-risk properties
Generally affordable premiums compared to private insurers
Important backstop for Florida homeowners

👎 Drawbacks:

Slow and cumbersome claims handling
Customer service can be unresponsive
Limited options and less flexibility than private insurance

📝 Bottom Line

Citizens isn’t luxury insurance – it’s a safety net. For many Florida homeowners in hurricane-prone areas, it may be the only option available. While coverage is more limited, it’s still a vital tool in protecting against catastrophic loss from wind, fire, or theft when no other insurers will underwrite your home.

If you live in a coastal or high-risk zone, don’t overlook Citizens. It may not be flashy, but it could save your home – and your finances – when a storm hits.

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