Citizens Wants to Hand Your Policy to Another Company. Should You Let Them?

If you have a homeowners policy with Citizens, there's a good chance an offer has already landed in your mailbox — or will soon — saying a private insurance company wants to "take over" your policy. The wording is confusing, the deadline feels pushy, and a lot of people either panic or ignore it. Neither is the right move. Here's exactly what a takeout offer is, why it's happening, and how to decide what's actually best for your home.

First, what is a "takeout" offer?

Citizens Property Insurance was created to be Florida's insurer of last resort — coverage for people who couldn't find a policy anywhere else. For a few years there, that was almost everyone, and Citizens ballooned to around 1.4 million policies. That was never the plan. So the state runs a program called depopulation: approved private insurers are allowed to "take out" policies from Citizens and offer to cover those homes themselves.

When a private company selects your policy, you (and we, as your agent) get a notice that Company X is offering to assume your coverage. You typically have a short window — often around 30 days — to either accept the offer or opt out and stay with Citizens, if you're still eligible to stay. That eligibility part is where it gets important.

Why this is happening now — and why it's mostly good news

The reason takeout offers have surged is that Florida's market is finally healing. After the litigation reforms of the last few years, new carriers have entered the state, and private companies are competing for policies again. Citizens has shrunk dramatically — down to roughly 385,000 policies, its lowest level ever and a fraction of its peak.

For the first time since 2015, Citizens even filed for an average rate decrease in 2026, with a large share of customers seeing meaningful cuts. The takeaway: more competition usually means more options for you, and being courted by private insurers is generally a sign of a healthier market — not a trap.

The case for accepting a takeout

Moving to a private carrier is often the right call, for a few concrete reasons:

• Broader coverage. Citizens coverage is deliberately bare-bones. Many private homeowners insurance policies include coverages Citizens caps or excludes — like water damage limits, ordinance-or-law coverage, and higher personal property protection.
• Lower exposure to assessments. If a catastrophic storm drains Citizens' reserves, Citizens policyholders can be hit with assessments (surcharges) on top of their premium. Leaving Citizens reduces that exposure.
• Sometimes a lower price. With more carriers competing, a private offer can come in at or below what you're paying — especially on newer or well-maintained homes.

The case for slowing down

That said, "a company wants your policy" is not the same as "this is a better policy." Before you sign, this is the part most people skip — and the part that matters most. A cheaper premium can hide thinner coverage or a financially shakier company.

1. Compare the premium honestly

Look at the full annual cost — including fees — against your actual Citizens renewal, not last year's number. Remember Citizens is cutting rates for many homeowners in 2026, so your renewal may be lower than you expect.

2. Match the coverage, not just the price

Confirm the dwelling limit (Coverage A), roof coverage (replacement cost vs. actual cash value), personal property, and liability at least match what you have today. A lower premium with a lower dwelling limit isn't a deal — it's a coverage cut.

3. Check the hurricane deductible

Florida policies carry a separate hurricane deductible, usually a percentage of your dwelling coverage. A "cheaper" offer with a 5% or 10% wind deductible instead of 2% can cost you tens of thousands out of pocket after a storm. Always convert the percentage to a dollar figure.

4. Vet the company's financial strength

Not every new Florida carrier is equally solid. Ask for the company's Demotech or AM Best rating before you move your home to it — and make sure it's a company we know and place business with. You can see the carriers we work with on our carriers page.

The bottom line

A Citizens takeout offer is not something to fear, and it's not junk mail to toss. In a lot of cases, moving to a private carrier means broader coverage and less assessment risk — sometimes for a similar or lower price. But the only way to know is to compare the offer apples-to-apples against what you have now. That's a ten-minute conversation, and it's exactly what an independent agent is for. Before you accept or decline, let's look at it together.

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