Every other house in Kendall used to be on Citizens. Half the condos on Brickell Ave, too. That's changing fast — and if you're still on Citizens in 2026, there's a real chance you shouldn't be.
Citizens was created by the state as Florida's insurer of last resort — for homes no private carrier would touch. The problem: private carriers kept leaving Florida, and Citizens quietly became the first option a lot of Miami homeowners see. Not because it's the best fit — because it's what was around when the renewal hit. Here's how to tell which side of that line you're on.
Key takeaways:
- Citizens is shrinking fast — over 500,000 policies moved to private carriers in 2025 alone.
- Private carriers aren't always more expensive — on newer roofs, they often win on price and coverage.
- Florida's 20% rule forces you off Citizens if a private offer is within range. It's not optional.
1. Why are so many Miami homes on Citizens?
The private market shrank for years. After a decade of hurricane losses, reinsurance cost spikes, and litigation pressure, a wave of Florida carriers left the state or stopped writing new policies. Citizens quietly became the default.
That's reversed. Legal reforms, a calmer reinsurance market, and the state's aggressive depopulation program moved over 500,000 policies off Citizens in 2025 alone. Miami-Dade's Citizens count dropped by more than half in a single year. Statewide, Citizens is down to under 400,000 policies — the lowest since 2019 and a 73% drop from its 2023 peak.
What's left on Citizens today tends to be older condos on Collins, coastal homes, and properties with roof age past 15 years. Most everything else has better private options now. If you're still on Citizens because you were "always on Citizens," it's probably time for a shop.
2. What happens if Citizens runs out of money?
This is the part most homeowners don't think about until the year after a hurricane.
Unlike private carriers, Citizens can levy assessments on every policyholder in Florida — even people who aren't on Citizens. After a major storm, those surcharges stick around for years, and your Citizens renewal itself can jump 20–30% with no warning.
A private carrier that goes insolvent triggers the Florida Insurance Guaranty Association, which pays claims up to a cap. Different risk profile, different year-two experience.
3. Is Citizens always cheaper?
No. This is the biggest misconception we see.
Citizens looks cheap at quote time, but it often skips coverage that matters: tighter water damage limits, limited law & ordinance, less generous wind mitigation discounts. On newer homes with updated roofs? Private carriers routinely beat Citizens on both price and coverage.
The "Citizens is cheapest" reflex is usually based on one quote from five years ago. That quote isn't valid anymore.
4. What's the 20% rule?
Florida law: if a private carrier offers you coverage within 20% of your Citizens premium, you're required to take the private offer. Citizens is supposed to be a last resort, and the 20% rule is how the state enforces it.
Your broker is obligated to shop both markets every year. If they aren't — or if you're auto-renewing Citizens without a comparison — you might be overpaying while technically required to move.
WYN Tip:
Ask us to shop both markets every renewal, not just Citizens. The 20% rule isn't a suggestion — it's a regulatory trigger. If a private carrier is in range, moving off Citizens isn't optional, it's required. We run this check free for every Miami policyholder, whether you buy from us or not. Straight answers, no gotchas — that's how we think insurance should work.