Jeffrey Wade
Citizens Insurance, or Citizens Property Insurance Corporation, is a state-run, non-profit insurance carrier for Florida residents. It was created by the Florida Legislature in 2002 as a response to hurricanes and tropical storms, which were driving up the price of home insurance in the state. Citizens Insurance provides property insurance protection to eligible Florida property owners who are unable to find coverage in the private market. As of 2024, Citizens Insurance is the most used home insurance company in Florida, with 1.171 million policies across the state.
| Characteristics | Values |
|---|---|
| Year of creation | 2002 |
| Type of entity | Not-for-profit, tax-exempt, government entity |
| Purpose | Provide property insurance to eligible Florida property owners unable to find insurance coverage in the private market |
| Funding | Policyholder premiums, assessments on Florida policyholders in the event of a deficit |
| Number of policies | 1.4 million (peak), 1.171 million (March 2024) |
| Number of employees | N/A |
| Website | www.citizensfla.com |
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What You'll Learn
Citizens Property Insurance Corporation is a non-profit
Citizens is committed to promoting a stable property insurance market for all Floridians and providing quality service that meets the needs of its customers. It aims to be a catalyst for depopulation and to optimize access to private-market coverage for its applicants and policyholders. Citizens also strives to reduce or eliminate the risk of emergency assessments for its policyholders and all potentially impacted Florida policyholders.
As one of Florida's leading insurers of homes and businesses, Citizens strives to ensure that its customers receive service comparable to private-market standards. Citizens is known as Florida's "'insurer of last resort,'" and many Florida property owners turn to Citizens because they have no other choice. Citizens provides less coverage than standard insurance policies, and its customers may face higher premiums and unaffordable assessments.
In recent years, Citizens has taken steps to reduce the number of policies it holds, encouraging policyholders to move to private insurers when possible. Despite this, Citizens remains a crucial part of Florida's property insurance marketplace, providing a safety net for those who cannot obtain coverage elsewhere.
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Citizens Insurance is the insurer of last resort
Citizens Insurance, formally known as Citizens Property Insurance Corporation, is a state-run, non-profit insurance carrier for Florida residents. It was created by the Florida Legislature in 2002 as a not-for-profit, tax-exempt, government entity to provide property insurance to eligible Florida property owners unable to find insurance coverage in the private market.
Citizens Insurance is often referred to as the "insurer of last resort" for Floridians. This is because it is often the only option for those who cannot obtain insurance from private companies. In fact, in 2005, Citizens was the only resort for many Floridians, as several companies pulled out of the Florida market due to an extraordinary number of hurricane and new sinkhole-related claims.
Citizens Insurance is funded by policyholder premiums. However, Florida law also requires Citizens to levy assessments on most Florida policyholders if it experiences a deficit after a particularly devastating storm or series of storms. As a result, Citizens Insurance can become very expensive for policyholders, especially after a major storm. This has led to concerns about the insurer's solvency, with Florida Governor Ron DeSantis warning that Citizens is "not solvent" and that it cannot function with "millions of people" relying on it.
Due to the high costs and limited coverage options offered by Citizens Insurance, many insurance experts advise against purchasing a policy from them unless it is the only option. Citizens itself admits that private insurers offer "more coverage options and less restrictive coverage" than its own policies. In addition, Citizens has actively worked to reduce its number of policies through its depopulation program, which aims to transfer policies to private insurers.
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Citizens Insurance is funded by policyholder premiums
Citizens Insurance, or Citizens Property Insurance Corporation, is a not-for-profit, tax-exempt, state-run insurance carrier for Florida residents. It was created by the Florida Legislature in 2002 to provide property insurance to eligible Florida property owners who are unable to find insurance coverage in the private market.
Citizens Insurance has a large customer base, with 1.3 million policyholders in 2011 and nearly 1.4 million in 2012. In 2012, Citizens asked 174,000 policyholders to move their policies to private insurers, and approximately 25,000 chose to remain with Citizens. As of April 2014, Citizens policies fell below one million, to 940,000.
Citizens Insurance is often referred to as Florida's "insurer of last resort". While Citizens Insurance can be a more affordable option for Floridians, it may not provide the same level of coverage and flexibility as private insurers.
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Citizens Insurance is accountable to its stakeholders
Citizens Insurance, formally known as Citizens Property Insurance Corporation, is a state-run, non-profit insurance carrier for Florida residents. It was created by the Florida Legislature in 2002 as a not-for-profit, tax-exempt, government entity to provide property insurance to eligible Florida property owners who are unable to find insurance coverage in the private market. Citizens is funded by policyholder premiums, and Florida law requires Citizens to levy assessments on most Florida policyholders if it experiences a deficit due to devastating storms. Citizens is governed by a board of governors and strives to provide quality service and access to affordable insurance for Florida consumers.
As a government entity, Citizens Insurance is accountable to its stakeholders, including the citizens of Florida, policyholders, and taxpayers. Its accountability is demonstrated through its commitment to financial stewardship and ethical behaviour. Citizens strive to be good stewards of premium funds and are accountable for managing finances responsibly. This includes being transparent about its financial health and reserves, as well as ensuring that it can meet its claims obligations.
Citizens Insurance is also accountable to its stakeholders by striving to provide quality service and access to insurance. It aims to offer professional, prompt, and courteous interactions with customers and to ensure that its services are comparable to private-market standards. Citizens is committed to promoting access, stabilisation, and market competitiveness in the property insurance industry in Florida. This includes working with private insurers to transition policyholders when possible, as part of its "depopulation program".
Additionally, Citizens Insurance is accountable to its stakeholders by being responsive to the needs of the communities it serves. It aims to be flexible and present for its policyholders and stakeholders when they need it the most, such as in the aftermath of hurricanes or other natural disasters. Citizens also equips its employees to act with integrity and do what is right for the communities and customers they serve.
Furthermore, Citizens Insurance is accountable to its stakeholders through its governance and oversight structures. It operates according to statutory requirements established by the Florida Legislature and is governed by a board of governors, which includes the governor, chief financial officer, attorney general, and commissioner of agriculture. This oversight panel provides additional accountability and ensures that Citizens operates in the best interests of its stakeholders and the state of Florida.
In summary, Citizens Insurance demonstrates its accountability to stakeholders through its commitment to financial stewardship, quality service, access to insurance, responsiveness to community needs, and adherence to governance and oversight structures. As a state-run, non-profit insurance carrier, Citizens plays a crucial role in providing affordable and accessible property insurance to Florida residents who may not have other options in the private market.
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Citizens Insurance's eligibility criteria
Citizens Insurance, formally known as Citizens Property Insurance Corporation, is a state-run, non-profit insurance carrier for Florida residents. It was created in 2002 by the Florida Legislature as a government entity to provide property insurance to eligible Florida property owners.
Citizens Insurance is often referred to as Florida's "'insurer of last resort'". This is because it is typically used by Florida property owners who cannot obtain insurance coverage in the private market. Citizens Insurance provides coverage for residential and commercial property owners who cannot find coverage on the open market or if their premiums are significantly higher than Citizens' coverage.
Under Florida law, customers are only eligible for Citizens Insurance if they cannot find coverage through a Florida private insurance company or if the premiums offered by private insurers are more than 20% higher than a comparable Citizens quote. If a customer is able to secure a private insurance policy for a lower price than Citizens, or if Citizens is less than 20% cheaper than their private options, they are not eligible for a Citizens policy.
Citizens Insurance provides a variety of personal residential policies that cover single-family homes, duplexes, condos, rental properties, mobile and manufactured homes, and even provides coverage for renters. Citizens also offers wind-only coverage in certain areas of Florida that are prone to hail and windstorms. If a property has been upgraded with wind-damage mitigation features, such as hurricane-proof windows and doors, Citizens offers discounts on premiums.
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Frequently asked questions
Citizens Insurance Florida, or Citizens Property Insurance Corporation, is a state-run, non-profit insurance carrier for Florida residents who are unable to find coverage from private insurance companies.
Citizens Insurance Florida was created by the Florida Legislature in 2002 as a response to hurricanes and tropical storms driving up the price of home insurance in the state.
Only those who are unable to purchase a policy from any other provider and those who have been priced out of the private market are eligible for insurance from Citizens. The property must be valued at $700,000 or less unless located in Miami-Dade or Monroe counties, where the cap is $1 million.
Citizens Insurance Florida is typically used as a last resort for those who cannot find coverage elsewhere. Private insurers offer more coverage options and flexibility than Citizens. However, Citizens policies are significantly cheaper than private insurers, with coverage from private insurers being at least 20% higher than a similar Citizens policy.
Citizens Insurance Florida is funded by policyholder premiums and assessments on most Florida policyholders if it experiences a deficit after a devastating storm.
