Citizens Property Insurance vs. Private Carriers: Which Is Right for Your Florida Home?

One of the most common questions buyers ask when shopping for a home in Bradenton or Sarasota is whether they should get their homeowners insurance through Citizens Property Insurance or a private carrier. The answer is more nuanced than most people expect, and getting it right can save you thousands of dollars over the life of your policy.

John Belt with Keller Williams On The Water walks clients through this decision regularly. Here is how the two options compare in the current Florida insurance market.

What Is Citizens Property Insurance?

Citizens is a state-created, not-for-profit insurer of last resort. It was established in 2002 to provide coverage to Florida homeowners who could not find insurance in the private market. It is not a government insurance program in the traditional sense — it is a publicly funded corporation that operates like an insurance company but exists specifically to fill gaps when private carriers will not write a policy.

During the height of the insurance crisis in 2022 and 2023, Citizens grew to more than 1.4 million policies as private insurers collapsed or withdrew from Florida. That rapid growth was a problem — Citizens is backed by the ability to levy assessments on all Florida policyholders if its reserves are insufficient to pay claims after a major hurricane. In other words, if Citizens cannot cover its losses, every Florida insurance customer helps pay the difference.

The Depopulation Program: How Policies Move to Private Carriers

Florida law mandates that Citizens actively reduce its policy count through a depopulation program. Under this process, private insurers submit proposals to the Office of Insurance Regulation to assume blocks of Citizens policies. If approved, Citizens policyholders receive takeout offers from private carriers.

Here is the key rule buyers need to understand: under Florida law, you cannot remain with Citizens if a private insurer offers you a policy at a premium within 20 percent of your current Citizens rate. Policyholders have 30 days to respond to a takeout offer. If you do not respond within that window, Citizens automatically transfers your policy to the approved private carrier.

The depopulation effort has been remarkably successful. More than 546,000 policies were transferred to private insurers in 2025 alone. As of early 2026, Citizens has approximately 336,000 policies remaining — the lowest level in over 20 years. Citizens is no longer the largest property insurer in Florida, with Universal Property and Casualty Insurance and State Farm Florida now holding more policies.

Citizens vs. Private Carriers: The Pros and Cons

Citizens offers a few advantages. Its rates are regulated and have historically been lower than many private carriers, which is partly why so many homeowners gravitated toward it during the crisis. Citizens also approved an 8.7 percent average rate decrease for 2026 — the first reduction since 2015. For some properties that are difficult to insure in the private market, particularly older homes or those in high-risk coastal areas, Citizens may be the only option.

However, Citizens has significant limitations. Coverage caps are lower than many private policies — the maximum dwelling coverage is $700,000 for most properties. Citizens does not offer some of the endorsements and optional coverages that private carriers provide. And the assessment risk is real: if a catastrophic hurricane depletes Citizens' reserves, every Florida insurance customer can be assessed a surcharge on their own policy, regardless of who their insurer is.

Private carriers now offer more competitive pricing thanks to 17 new companies entering the Florida market since the 2022 reforms. Many private insurers offer broader coverage options, higher dwelling limits, and claims service that can be more responsive. The downside is that private carrier rates are not regulated in the same way, and some of the newer entrants do not yet have long track records in the Florida market.

What Bradenton-Sarasota Buyers Should Do

The best approach is to quote both Citizens and multiple private carriers for any property you are considering. An independent insurance agent who works with several Florida carriers can run quotes side by side and help you compare not just premiums but also coverage limits, deductible structures, and claims handling reputation.

Pay close attention to the wind and hurricane deductible, which in Florida is typically a percentage of your dwelling coverage rather than a flat dollar amount. A two percent hurricane deductible on a $400,000 home means you are paying the first $8,000 out of pocket on a hurricane claim. Some carriers offer lower percentage deductibles for an additional premium, which may be worth it depending on your risk tolerance.

If you end up on Citizens and later receive a takeout offer, review the private carrier's financial stability rating and coverage terms carefully before accepting or rejecting. You can check an insurer's financial health through the Florida Office of Insurance Regulation or rating agencies like AM Best and Demotech.

The Bottom Line

The Florida insurance market is healthier than it has been in years, and both Citizens and private carriers are viable options depending on your property and circumstances. The key is to shop aggressively, understand the terms of your policy, and factor insurance costs into your home buying budget from the very beginning.

For help navigating insurance decisions while buying a home in Manatee or Sarasota County, reach out to John Belt with Keller Williams On The Water. Understanding the full cost of ownership — including insurance — is how you buy smart in this market.