Citizens Depopulation in Florida: What to Do When You Get a Takeout Offer

If you have been with Citizens Property Insurance for a few years, there is a decent chance you have already received a takeout offer in the mail — or you will. The state has been pushing depopulation hard since 2023, and the pace picked up again in 2024. Hundreds of thousands of Florida homeowners were moved to private carriers last year, whether they wanted to go or not.

This post breaks down how the depopulation process actually works, what the 20% rule means in plain language, and what your real options are when a takeout offer lands in your mailbox. I am not an insurance agent, so this is not advice about which carrier to pick — but as a Central Florida real estate agent, I deal with insurance questions on nearly every transaction. Understanding this matters.

What Is Citizens Depopulation?

Citizens Property Insurance Corporation is Florida's insurer of last resort. It was created by the state legislature to cover homeowners who cannot find affordable coverage in the private market. At its peak in 2023, Citizens held more than 1.4 million policies — an unsustainable number that put Florida taxpayers on the hook if a major hurricane hit.

Depopulation is the official term for the program that moves policies off Citizens and onto private carriers. The Florida Office of Insurance Regulation (OIR) approves private insurers to participate. Those carriers make takeout offers to Citizens policyholders. If you accept — or if you meet the criteria that make you ineligible to stay — your policy transfers to the new carrier.

The program ran in multiple waves throughout 2024. Slide Insurance was one of the more active participants, receiving OIR approval to make offers on about 35,000 policies in the February 2024 round alone — 25,000 of those were residential. Altogether, more than 354,000 Citizens policies transferred to private carriers during 2024.

The 20% Rule: When You Cannot Stay on Citizens

The core of the depopulation program is what people call the 20% rule. Under Florida law, if a private carrier offers you a policy that is within 20% of what Citizens estimates your renewal premium would be, and the coverage is equivalent, you are considered ineligible to remain with Citizens. That means you will be moved — even if you would rather stay.

Here is a concrete example. Say Citizens estimates your renewal at $4,000 per year. A private insurer offers you $4,700. That offer is 17.5% higher than Citizens — under the 20% threshold. You cannot stay on Citizens. You would be automatically transferred to the private carrier if you do not respond to the takeout notice.

If the private offer were $5,100 — 27.5% higher — you would have the right to decline and stay with Citizens.

• The 20% comparison is against Citizens' estimated renewal premium, not what you paid last year.
• Coverage must be equivalent — a stripped-down policy at a lower price does not automatically trigger the rule.
• You typically have 30 days to respond to a takeout notice. Ignoring it often means automatic transfer.
• As of 2023 law changes, Citizens is no longer required to notify you whether you have the right to reject the offer. Read your notice carefully.
• Commercial nonresidential policies have no right to remain with Citizens — those policyholders must accept a takeout offer or find coverage elsewhere.

Rate Caps: How Citizens Limits Annual Increases

Citizens operates under a glide-path rate cap that limits how much your premium can increase each year. For homestead (primary residence) policies, the cap has been climbing annually under Senate Bill 76:

1. 2022: 11% cap
2. 2023: 12% cap
3. 2024: 13% cap
4. The cap increases by 1% per year, targeting 15% by 2026

Non-homestead (investment or vacation) properties face higher caps. The glide path was designed to bring Citizens premiums closer to actuarially sound rates — meaning rates that actually reflect the risk. For years, Citizens was subsidizing premiums below market, which is why it ballooned to 1.4 million policies.

The rate cap matters when you are evaluating a takeout offer. If Citizens is at $3,500 now but is capped at 13% for 2024, your Citizens renewal could hit $3,955 before long. A private offer at $4,200 is not as far apart as it looks at first glance — and you are no longer building toward the private market anyway.

“The glide-path cap does not freeze your Citizens premium. It only limits how fast it can climb each year. Budget accordingly.”

Should I Accept a Citizens Takeout Offer?

This is the question I hear most often from clients. There is no universal answer, but here is how I think through it.

First, check whether the private carrier is financially stable. The OIR requires takeout companies to demonstrate financial resources and a solid claims-paying plan before approval — but carrier solvency has been an issue in Florida. Look up the company on the Florida OIR website or ask your insurance agent to pull a rating.

Second, compare coverage, not just premium. Does the private policy include replacement cost coverage or actual cash value? Are wind and flood exclusions the same or broader? Is the deductible structure comparable? A lower premium with worse coverage is not a good deal.

Third, think about your timeline. If you are planning to sell in the next one to three years, a private carrier policy may actually help. Buyers and lenders are increasingly scrutinizing Citizens policies during transactions — some lenders prefer private market coverage, and it signals you have not just been defaulting to the insurer of last resort.

• If the private offer is within 20% and coverage is equivalent, you likely cannot stay anyway — evaluate the carrier and move on.
• If you can stay on Citizens, weigh the short-term savings against the rate trajectory. Citizens rates are heading up.
• Never ignore a takeout notice. Non-response usually equals automatic transfer.
• Ask your insurance agent to compare the takeout policy side by side against your Citizens policy before you decide.
• If you are buying a home currently insured by Citizens, ask the seller for documentation of their current Citizens premium and any pending takeout offers.

What Happens After the Transfer?

Once your policy transfers to a private carrier, you are generally on the same footing as any other homeowner with private insurance. You deal with the new carrier directly for renewals, claims, and coverage changes. Citizens is no longer in the picture.

One caveat: some takeout carriers are newer companies that built their Florida books primarily through the depopulation program. Slide Insurance is one example — it was specifically formed to participate in Florida's market. That is not automatically bad, but it means a shorter claims history. Dig into reviews from Florida policyholders, not national averages.

If your new private carrier later decides to leave the Florida market or becomes insolvent, the Florida Insurance Guaranty Association (FIGA) provides a backstop for covered claims up to certain limits. Know that it exists, but do not rely on it as a reason to accept a weaker carrier.

The Bigger Picture for Florida Homeowners

The state's goal with depopulation is straightforward: reduce Citizens' exposure so Florida taxpayers are not on the hook for a catastrophic storm season. That is a legitimate policy objective. The friction is that thousands of homeowners who moved to Citizens because private coverage was unaffordable are now being pushed back into a private market that is still finding its footing.

As of mid-2024, Citizens still held about 1.16 million policies, making it the largest property insurer in the state despite the depopulation push. The program has been moving the needle — down from the 1.4 million peak — but it is a slow process.

For buyers and sellers in Tampa Bay and Central Florida, this is not abstract policy. It affects what a home costs to own, whether a deal closes on the buyer's financing timeline, and what escrow projections look like in the first year. If you are navigating a transaction and Citizens is part of the picture, bring it up early with your agent and your lender.