Florida Citizens: An Overview

As of August 2023, Citizens Property Insurance Corp., often referred to as Florida Citizens, was the largest home insurer in Florida, with about 18% of homeowners policies written within the program. This program is a state-run insurer that was built to be a "last resort" for homeowners who are unable to secure coverage from private insurance companies.

Due to rate increases from private insurers over the past few years, Florida Citizens has had rates lower than the private sector and therefore has seen tremendous growth. In order to combat the gap in rate between Florida Citizens and the private insurers, the insurer proposed double-digit rate hikes.

Florida's Office of Insurance Regulation (OIR) has ordered Florida Citizens to reduce its proposed rate increases, but this presents the issue of Florida Citizens potentially having difficulties in covering losses. While the reduced rate hikes may benefit existing policyholders, it highlights the importance of exploring alternative home insurance options that may offer more comprehensive coverage and competitive rates.

Understanding the Limitations of Florida Citizens

Florida Citizens plays a crucial role in providing insurance to high-risk homeowners, but it's essential to understand its limitations. Florida Citizens' coverage may be less comprehensive than what private insurers offer, and its rates may be higher due to the increased risk profile of its policyholders.

If you are comparing a Citizens quote to a quote from a private insurer, be sure to check the following key items:

‍1) Replacement Cost:

‍Ensure that replacement cost coverage applies to both your dwelling and your contents. Private insurers can often provide Additional Replacement Cost (25% or 50% over your dwelling value) that allows you a cushion in the case of a claim where the cost to rebuild your home exceeds your dwelling value due to inflation or rising building or material costs.

‍2) Deductibles:

‍Be sure you understand the deductibles offered by your quote and how they would be calculated in the case of a claim.

‍3) Optional Coverages:

‍While a Florida Citizens policy may cover the basics, it may lack the optional coverages that a private insurer can provide. These optional coverages can be crucial at the time of a claim, so be sure to compare and make sure your private insurer quote and your Florida Citizens quote are 'apples to apples'.

Exploring Viable Home Insurance Alternatives

Numerous private insurance companies offer home insurance in Florida, providing a range of coverage options and competitive rates.

The best way to shop multiple carriers for your insurance is to partner with an independent insurance agent, like IZC Insurance Agency. Independent Agents partner with multiple top-rated national carriers and well as regional carriers to find you the best options to insure your home.

Factors to Consider When Choosing an Insurance Provider

When evaluating home insurance options, consider the following factors:

‍Coverage options: Ensure the policy provides adequate coverage for your home and belongings, including protection against hurricanes and other common Florida hazards.

‍Financial strength: Choose an insurer with a strong financial rating to ensure they can handle claims even after major events.

‍Customer service: Opt for an insurer with a reputation for responsive and helpful customer service.

Where do you go from here?

While Florida Citizens serves as a valuable safety net, exploring alternative home insurance options can provide you with broader coverage, competitive rates, and a more personalized insurance experience. By carefully evaluating your options and considering factors such as coverage, financial strength, and customer service, you can find the home insurance policy that best suits your needs and protects your valuable investment.

Get a quote with IZC Insurance to make sure your Florida home is well protected. Call us at (404)-795-4807 or use our quick, no hassle online quote form below. One of our Florida experts will call you and personally walk you through the best ways to protect your home in the Sunshine state.

‍