For the first time in more than two years, Citizens Property Insurance Corporation announced that it has reduced its policy count below 1 million as the Florida property insurance market shows signs of recovery.
As of Nov. 29, the state-backed insurer reported 987,650 policies, a decrease largely attributed to the success of its depopulation efforts.
Since January 2024, Citizens’ Depopulation Program has facilitated the transfer of more than 428,000 policies to private insurers approved by Florida’s Office of Insurance Regulation. This development reflects not only the program’s effectiveness but also increased interest from private insurers in Florida’s market.
“These are encouraging signs as we continue our efforts to return to our role as Florida’s insurer of last resort,” said Tim Cerio, Citizens’ president, CEO, and executive director.
He said that as Citizens’ policy count shrinks, the risk of assessments on non-Citizens policyholders is reduced, a benefit to all Florida residents.
The drop in policy count marks a 19.5% decrease from January 2024 and has reduced Citizens’ exposure by nearly $200 billion. Following the December depopulation assumption, the policy count is projected to fall further, potentially reaching close to 900,000 by year-end.
This trend also reflects a slowdown in the influx of new policies into Citizens as private insurers expand their presence in Florida. New market entrants and the re-engagement of existing private insurers have contributed to a diversification of available coverage options for homeowners.
During the Citizens board of governors’ quarterly meeting, Cerio addressed the insurer’s rate of claims denials following hurricanes Debby, Helene, and Milton. As of now, Citizens has denied 13.2% of all claims related to the storms, primarily due to a lack of coverage under the terms of the policy, including claims for flood damage.
Like most private insurers, Citizens does not provide flood coverage, a separate peril often addressed by federal programs.
Cerio said that media reports suggesting higher denial rates failed to account for several factors. These included claims accepted but not exceeding deductible thresholds, withdrawn claims, duplicate filings, invalid claims, or those filed by individuals who were no longer Citizens policyholders at the time of the storm.
A similar discrepancy was highlighted in a 2023 analysis by Weiss Ratings, which Cerio said misinterpreted claims data and did not account for specific procedural differences unique to Citizens.
As Florida’s insurer of last resort, Citizens often insures properties in flood-prone regions and encourages policyholders to file claims, even if below deductible levels, to qualify for assistance from the Federal Emergency Management Agency (FEMA).
These practices, along with exclusions common to Citizens’ policies, contribute to higher-than-average denial rates compared to the private market.
For example, pool enclosures are not typically covered under Citizens policies, a factor that contributes to denials for damages that fall outside policy terms. Cerio said that these distinctions are essential for understanding Citizens’ claims process and overall role in the market.
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