Your Florida home insurance just got more competitive. News4Jax reports that Citizens Property Insurance Corporation shed over 900,000 policies in two years, dropping from 1.4 million to under 500,000. That’s a 64% decline—and the biggest signal yet that Florida’s notorious property insurance crisis may finally be stabilizing.
What does this mean for your wallet? More choices. Lower premiums for many. And possibly the end of the dreaded “hurricane tax” that’s threatened Florida homeowners for years.
The shift happened through an aggressive depopulation program that transferred policyholders to private insurers when premiums stayed within 20% of Citizens’ rates. In October alone, 199,000 policies moved to private companies—and 40% got lower premiums than Citizens charged.
Why Citizens Shrinking Is Good News for Florida Homeowners
Citizens wasn’t designed to be Florida’s largest insurer. It’s the state-backed “insurer of last resort”—a safety net for homeowners rejected by private companies.
But after hurricanes battered Florida and insurers fled, Citizens ballooned to 1.4 million policies by 2023. That created a ticking time bomb: if a major hurricane hit, the state would need to assess surcharges on every insurance policy in Florida—auto, business, health—to cover losses. Mark Friedlander from the Insurance Information Institute called it the “hurricane tax.”
Now? That risk dropped significantly.
“This is the biggest sign we’ve seen thus far to get Citizens down to a manageable level of risk,” Friedlander told reporters. “We no longer have to worry about the so-called hurricane tax that would be a surcharge applied to all Florida consumers.”
The math works out for homeowners, too. With Citizens smaller, your exposure to post-hurricane assessments shrinks. Plus, increased competition from 17 new insurers entering Florida means better rates and coverage options you didn’t have two years ago.
How the Depopulation Program Works (And What It Means for Your Premium)
Citizens’ depopulation program isn’t random. Here’s the process:
- Private insurers make offers to Citizens policyholders if they can provide coverage at premiums within 20% of Citizens’ rates. For some homeowners, that means identical or lower costs.
- Policyholders get notified when they’re eligible for transfer. You’re not forced to switch, but the option exists.
- 40% of October transfers paid less with private insurers than they would’ve with Citizens. The rest stayed roughly the same price but gained access to potentially better coverage terms.
- The program runs continuously, with tens of thousands of policies moving monthly as private insurers rebuild capacity in Florida.
Peltier, a Florida insurance expert, noted: “Private companies are ready, willing and able to come back to Florida.” That wasn’t true in 2022.
What changed? Legislative reforms stabilized the market. Tort reforms reduced frivolous lawsuits that drove up claims costs. Reinsurance became more available. And with two consecutive years of no catastrophic hurricanes, insurers regained confidence in Florida’s market.
Florida Home Insurance Rates: What the Numbers Show
The average rate filing change in Florida came in below 1% for the second year running. That’s remarkable for a state where premiums skyrocketed 30-40% annually from 2020-2022.
| Year | Average Rate Change | Market Status |
|---|---|---|
| 2021-2022 | 30-40% increases | Crisis mode |
| 2024 | Under 1% | Stabilizing |
| 2025 | Under 1% | Stabilized |
Friedlander emphasized the significance: “Two consecutive years of very strong results for Florida consumers because the market is stabilized.”
Not every homeowner saw decreases. But many did. And critically, the double-digit annual increases that made Florida home insurance unaffordable for thousands? Those appear to be over.
Several insurers even filed for rate decreases in 2025—something almost unthinkable three years ago. “Rates have come down, and many companies have been filing for rate decreases,” Friedlander confirmed.
Should You Switch from Citizens to a Private Insurer?
If you’re still with Citizens and get a depopulation offer, here’s what to consider:
Reasons to switch:
- Your premium stays the same or drops (40% chance based on recent data)
- You avoid future hurricane tax assessments if a major storm hits
- Private insurers often provide better customer service and claims processing
- More coverage options and policy customization
Reasons to stay with Citizens:
- You’re locked into a good rate that private insurers can’t match within the 20% threshold. But this is rare now.
- You prefer the stability of a state-backed insurer, though that comes with surcharge risk.
- Your property has unique characteristics that make private coverage difficult. Even so, check the offer carefully.
Most insurance experts recommend accepting the transfer if premiums are comparable. You’ll likely get equal or better coverage with lower systemic risk.
One homeowner concern: “Will my new insurer go bankrupt?” Valid question, given Florida’s history. But the Florida Office of Insurance Regulation now requires stricter capital requirements and financial stability standards. The 17 new insurers entering the market passed rigorous solvency tests.
17 New Insurers: What Competition Means for Your Choices
Private insurer re-entry fundamentally changed Florida’s market dynamics.
“With that increased competition, folks are seeing that they have more choices,” Peltier explained. More choices drive down prices. Basic economics.
The 17 new insurers don’t just absorb Citizens’ policies. They compete for business, which means:
- Rate shopping actually works now. Two years ago, many Floridians had zero options outside Citizens. Today, coastal homeowners might have 5-7 quotes to compare.
- Coverage innovations appear. New insurers bring modern policy structures, usage-based pricing, and better digital tools for claims filing.
- Customer service improves. When Citizens was the only game in town, service suffered. Competition forces insurers to retain customers through better experiences.
Still, not every Florida homeowner benefits equally. Coastal properties and older homes face higher premiums across the board. But even in high-risk areas, having options beats having none.
What Happens Next for Florida Property Insurance
Citizens plans to keep shrinking. The target: reduce policies to a “manageable level of risk” that won’t trigger statewide assessments even after a major hurricane.
Experts project Citizens could drop below 300,000 policies by late 2026 if the depopulation pace continues. That would return the insurer to its intended role: true last resort, not market dominant player.
For homeowners, this means:
- Expect more depopulation offers if you’re with Citizens
- Rate increases should stay modest (barring catastrophic storms)
- Private market options will keep expanding
- Your hurricane tax exposure continues declining
The wildcard? Hurricane activity. One Category 4 or 5 direct hit could reverse market gains quickly. But unlike 2017-2022, insurers now have better reinsurance and stronger balance sheets to weather storms.
Frequently Asked Questions
Why did Citizens Insurance lose 900,000 policies in two years?
Citizens ran an aggressive depopulation program transferring policyholders to private insurers when premiums stayed within 20% of Citizens’ rates. Legislative reforms and improved market conditions brought 17 new insurers to Florida, creating capacity for private companies to absorb Citizens’ policies. The goal: reduce state-backed insurance risk and avoid “hurricane tax” surcharges on all Florida consumers after major storms.
Will my home insurance rates keep dropping in Florida?
Average rate changes stayed below 1% for two consecutive years (2024-2025), with some insurers filing decreases. But “dropping” isn’t guaranteed for everyone. Coastal properties and older homes still face higher premiums. The good news: double-digit annual increases (30-40% in 2021-2022) appear over. Rates should stay relatively stable unless major hurricanes hit, though individual premiums vary based on location, home age, and coverage levels.
Should I accept a depopulation offer from Citizens Insurance?
Most insurance experts recommend accepting if premiums are comparable. In October 2025, 40% of transferred policies got lower rates than Citizens charged. You avoid future hurricane tax assessments, often get better customer service, and gain more coverage options. Only stay with Citizens if your rate is significantly better than private offers (rare now) or your property has unique characteristics making private coverage difficult. Always compare the full policy terms, not just premium cost.
Are the new Florida insurers financially stable?
The Florida Office of Insurance Regulation now requires stricter capital requirements and solvency standards. All 17 new insurers passed rigorous financial stability tests before receiving licenses. While no insurance is risk-free, regulatory oversight improved significantly after the 2022 crisis. Check your insurer’s ratings with AM Best or similar services, and verify they carry adequate reinsurance for hurricane season.
What is the “hurricane tax” and am I still at risk?
The “hurricane tax” refers to surcharges applied to all Florida insurance policies (home, auto, business, health) if Citizens faces catastrophic losses exceeding its reserves after a major hurricane. With Citizens down to under 500,000 policies from 1.4 million, your exposure dropped significantly. Mark Friedlander from the Insurance Information Institute stated: “We no longer have to worry about the so-called hurricane tax.” Risk isn’t zero, but it’s far lower than when Citizens held 1.4 million policies.
Bottom Line: Florida’s Insurance Market Finally Turning Around
Citizens’ 900,000-policy drop isn’t just a number. It’s proof that Florida’s property insurance market stabilized after years of chaos.
You now have options. Premiums stayed flat or dropped for many homeowners. And the risk of statewide hurricane assessments decreased substantially.
If you’re with Citizens, expect a depopulation offer eventually. Compare it carefully, but odds favor switching—especially if premiums match or beat Citizens’ rates. Check with your insurance agent or get quotes from multiple carriers using Florida’s consumer resources.
The market still isn’t perfect. Coastal areas face high premiums. Older homes need expensive retrofits. But compared to 2022? Night and day.
For the first time in years, Florida homeowners can shop for insurance without panic. That’s progress.