Florida’s property insurance market is improving as private companies respond to legislative changes that have made Florida more attractive.

The trend is expected to continue in 2024, with initial projections indicating that more than 300,000 of Citizens’ 1.2 million policyholders may receive takeout offers from private companies by the end of the year.

If you were among the more than 275,000 Citizens policyholders assumed by private companies in 2023, you don’t need to do anything. Before your policy comes up for renewal, you will be notified by your private carrier of its renewal offer. Until your policy is renewed, your premium and coverage stay the same.

Policyholders receiving a renewal offer notice that is not more than 20% higher than Citizens’ renewal premium are not eligible to stay with Citizens. Policyholders receiving renewal offer notices that are more than 20% higher than their Citizens renewal premium are eligible to stay with Citizens. However, please work with your agent to determine if there are any other private companies that are offering a policy that is within 20% of Citizens’ premium.

If you haven’t received an offer yet, there is a chance you may receive one in 2024. Some policyholders may see multiple offers throughout the year.

It’s important to read the Citizens mail and emails you receive. If you don’t respond to an assumption letter, your policy will automatically be assumed by the private company making the offer. Again, your premium and coverage will remain unchanged until your existing policy term expires.

Consider Your Options, Talk to Your Agent

Although premium pricing is an important consideration when seeking property insurance, it is also essential to note that private coverage at a higher premium might make sense. The private policy, for example, may offer more comprehensive coverage. Citizens policyholders are also subject to a premium surcharge of up to 15% of their annual premium if Citizens exhausts its ability to pay claims following a major storm.

In addition, most Citizens policyholders also will be required to obtain flood insurance coverage, which is available through private-market carriers or the National Flood Insurance Program. Flood coverage requirements are being phased in over the next three years, and already has begun. After January 1, 2027, all single-family and multifamily residential policyholders, except condominium owners, with wind coverage will be required to also be insured for flood.

New companies have entered the market, and existing companies are expanding. Your agent is an invaluable resource as you consider your options. Take the time to make an informed decision.