Citizens Property Insurance vs Private Carriers in Florida
If you're a Hillsborough County homeowner with a Citizens Property Insurance policy, you've probably received letters offering to move you to a private carrier. Or maybe you're shopping for coverage and wondering whether Citizens is even an option.
This guide explains what Citizens is, how it compares to private carriers in , and what the depopulation process means for your policy.
What Is Citizens Property Insurance?
Citizens is Florida's state-backed property insurance company. It was created in 2002 as an "insurer of last resort" — a place for homeowners who can't find coverage in the private market. It's not a charity and it's not a subsidy program; it's a full insurance company that happens to be backed by the state.
Citizens is designed to shrink over time, not grow. State law requires it to charge rates that are "actuarially sound" and to move policies to private carriers whenever possible.
Eligibility for Citizens in 2026
To get a Citizens policy in , you must meet one of these conditions:
- You've been rejected by at least one private carrier for the same coverage
- Your home's replacement cost exceeds the private market's maximum limits (usually $2–$3 million)
- Your home is in an area where no private carrier writes policies
You cannot simply choose Citizens because it's cheaper. The state requires proof that you've been denied private coverage.
Citizens vs Private: Cost Comparison
Citizens cut rates by an average of 8.7% statewide for , making it more competitive than it's been in years. But the comparison isn't simple:
- Citizens average Hillsborough premium: ~$1,816/year
- Private market average in Hillsborough: ~$4,150/year
Citizens is significantly cheaper — but that's because Citizens policies often have narrower coverage, higher deductibles, and fewer endorsements available. It's also because Citizens is subsidized by the state's ability to assess policyholders after a major storm.
What Is Depopulation?
Depopulation is Florida's program to move policies from Citizens to private carriers. When a private carrier offers to take a Citizens policy, the state encourages the policyholder to accept. The goal is to reduce the state's exposure to hurricane risk.
If you're a Citizens policyholder, you'll receive offers from private carriers. You're not required to accept them, but there are consequences to refusing:
- If you accept a private offer and the private carrier later non-renews you, you can return to Citizens without penalty
- If you refuse private offers and remain on Citizens, you may face a "consent to rate" surcharge if Citizens raises rates
Citizens vs Private: Pros and Cons
Citizens Pros
- Lower average premiums
- Available when no private carrier will write your home
- Backed by the state, so it won't go bankrupt
- Handles coastal and high-risk properties
Citizens Cons
- Assessment risk after major storms
- Narrower coverage options
- Not designed to be a long-term solution
- Depopulation pressure at every renewal
Private Carrier Pros
- No assessment risk
- Broader coverage options and endorsements
- Competitive pricing for low-risk homes
- Bundling discounts available
Private Carrier Cons
- Higher average premiums in Hillsborough
- Some carriers won't write older homes or coastal properties
- Financial stability varies — some Florida carriers have failed
What Should You Do?
- If you're on Citizens and receive a private offer, compare it carefully. Don't reject it automatically. Get a sample policy and compare deductibles, coverage limits, and exclusions.
- If the private offer is more than 20% higher, it's usually worth staying on Citizens.
- If the private offer is within 10% of your Citizens rate, take the private offer. You're avoiding assessment risk.
- If you're shopping fresh, get quotes from at least three private carriers before applying to Citizens. See our best companies guide.
For the broader market picture, see our 2026 market trends guide. For what drives your premium, see our insurance costs guide.