Citizens Property Insurance has shrunk to its smallest size in over a decade as private carriers pull policies back into the open market. If you have a Citizens policy, you have probably received, or soon will, a takeout (also called depopulation) offer from a private insurer. Here is how to read it.
What a takeout offer is
Citizens is Florida's state-backed insurer of last resort. When the private market stabilizes, carriers offer to assume Citizens policies, and the state encourages the move. A takeout offer is simply a private company proposing to take over your coverage at renewal.
The 20% rule
This is the part that catches people off guard. Under Florida law, if a private insurer offers to cover you at a premium within 20% of what Citizens would charge, you are required to leave Citizens and accept the private policy. Only if every private offer is more than 20% higher can you stay on, or return to, Citizens.
How to evaluate the offer
- Compare coverage, not just price. Check Coverage A, the roof settlement (replacement cost vs. actual cash value), and the deductibles. A cheaper policy with an ACV roof can cost you dearly at claim time.
- Check the carrier. Financial strength rating and claims reputation matter, especially in Florida.
- Look at the whole market. The takeout offer is one option. An independent agent can line it up against every other carrier to see if it is actually your best deal.
What happens if you do nothing
Read the notice and the opt-out deadline carefully. If you take no action, the takeout can proceed automatically at renewal. That is fine if the policy is good, but you want to make that choice on purpose, not by default.
With rates improving across Florida in 2026, there has rarely been a better time to compare your Citizens policy against the private market.
Frequently asked questions
Do I have to accept a Citizens takeout offer?
If the private offer is within 20% of your Citizens renewal premium, Florida law generally requires you to take it. If it's more than 20% higher, you can stay on Citizens.
Is a private carrier better than Citizens?
It often offers broader coverage, but not always. Compare the roof settlement, deductibles, and the carrier's strength. We can compare an offer against the full market for you.
Can I go back to Citizens after leaving?
Sometimes. If no private carrier can renew you within 20% of what Citizens would charge, you may be eligible to return.
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