Who Is Citizens Insurance in Florida?

Citizens Property Insurance Corporation is Florida's insurer of last resort, created in 2002 to help homeowners who could not find affordable coverage in the private market.

What is Citizens Insurance of Florida and why do so many people have them? Citizens was set up back in 2002 by the government in Florida to help people who could not get insurance or could not get affordable insurance. Over time it has turned into a type of policy that can often be cheaper than the private markets. So if you have a high-risk home or a home that is hard to insure, Citizens is usually, or what has been historically, the cheapest option to find. They insure a lot of homes close to water, a lot of homes with claim history, and homes that the private markets will not take.

Should you switch your policy to them? That is a whole other conversation, but they are the carrier of last resort. There are a lot of things that those policies are missing. They do not cover screen enclosure coverages. They will not insure your personal liability over $100,000. There are other important coverages they leave off as well. So they are there to help people who cannot get insurance, but should you go with them? Not if you can find a private option.

What Is Citizens Insurance of Florida?

If you have been shopping for homeowners insurance in Florida, you have likely come across Citizens Property Insurance Corporation. In fact, Citizens has become one of the largest home insurance providers in the state. But what exactly is Citizens Insurance, and why do so many Florida homeowners have policies with them? The answer lies in Florida's unique insurance market and the challenges many homeowners face when trying to obtain affordable coverage.

Why Was Citizens Insurance Created?

Citizens Property Insurance Corporation was established by the State of Florida in 2002 following a series of devastating hurricanes and the withdrawal of many private insurance companies from the state. As insurers became more selective or stopped writing policies in certain areas altogether, many homeowners struggled to find coverage. Citizens was created to serve as a safety net for property owners who could not obtain homeowners insurance through the private market or whose available options were prohibitively expensive.

Why Do So Many People Have Citizens Insurance?

Over the years, Citizens has grown significantly because many Florida homeowners live in areas that private insurance companies consider higher risk. Homes located near the coast, properties with previous insurance claims, older homes, or houses with characteristics that make them more difficult to insure often qualify for Citizens when private carriers decline coverage. In many cases, Citizens has also offered lower premiums than comparable private insurance policies, making it an attractive option for homeowners looking to reduce insurance costs.

Is Citizens Insurance the Cheapest Option?

Historically, Citizens has often been among the more affordable choices for homeowners who qualify. However, price should never be the only factor when comparing insurance policies. While a lower premium can certainly help reduce monthly expenses, it is equally important to understand exactly what coverage you are receiving and what may not be included.

What Are Some Limitations of Citizens Insurance?

Because Citizens is intended to be Florida's insurer of last resort, its policies may not provide the same breadth of coverage available from many private insurance companies. For example, Citizens policies generally do not include coverage for screened enclosures, which are common features on Florida homes. Coverage limits for personal liability are also lower than what many private insurers offer, with a maximum liability limit of $100,000. Depending on the policy and property, there may be additional coverage limitations or optional endorsements that are unavailable. These differences can become important if you experience a claim and discover certain types of damage or liability exposures are not fully covered.

Should You Choose Citizens Insurance?

For homeowners who cannot obtain coverage through a private insurance company, Citizens plays a vital role by ensuring insurance remains available. Without it, many Florida residents would have few or no options for protecting their homes. However, if a reputable private insurance company offers comparable pricing and broader coverage, many insurance professionals recommend considering the private market first. Private carriers often provide higher liability limits, additional optional coverages, and policy features that may better protect your home and financial assets. Every homeowner's situation is different, and the right choice depends on your property's location, age, condition, claims history, and the available insurance options in your area.

The Bottom Line

Citizens Insurance was created to help Florida homeowners who have difficulty finding affordable insurance through the private market. It continues to provide an essential service by insuring homes that many private companies may decline. While Citizens can be an excellent solution for some homeowners, it is important to understand that lower premiums may come with coverage limitations. Before choosing any homeowners insurance policy, compare not only the price but also the coverages, exclusions, deductibles, and liability limits. Working with an independent insurance agent can help you evaluate all available options and determine whether Citizens or a private insurer is the better fit for your home.