Florida’s property insurance market has been evolving rapidly, and recent actions by Citizens Property Insurance Corporation reflect those broader changes. Citizens is Florida’s insurer of last resort, created to provide coverage for residents who cannot secure insurance in the private market. Recent decisions regarding rate filings and policy counts provide useful context for homeowners assessing their coverage options in 2026.
How Citizens’ Rate Filing Is Changing
In a notable shift, Citizens’ Board of Governors voted to file for an average rate decrease of about 2.6 percent for personal homeowners policies beginning in June 2026. This proposed reduction follows years in which Citizens pursued substantial rate increases to align with changing market conditions and regulatory requirements.
This rate filing still must be reviewed and approved by the Florida Office of Insurance Regulation, and the final outcome may differ.
Market Context: The Role of Citizens
Citizens was established to act as a safety net for policyholders who cannot find coverage through private carriers. Over the last several years, Citizens’ policy count has declined sharply as private market capacity has returned to Florida’s insurance landscape. At the end of 2025, Citizens is expected to have its lowest number of active policies in decades, according to recent reporting.
This reduction in exposure is significant. A smaller policy base and legislative reforms that addressed litigation practices and claim challenges have helped stabilize the market overall and contributed to the conditions behind Citizens’ current rate filing. Reinsurance costs have also softened, which influences rate decisions for both Citizens and private carriers.
Understanding Citizens’ 20% Rule
An important eligibility guideline for current and prospective Florida policyholders is Citizens’ 20% Rule. Under this rule, you must show that no authorized private insurer is offering you a comparable policy at a premium that is within 20% higher than what Citizens would charge to qualify. In these cases, Citizens coverage is not permitted because the private market has presented a viable alternative.
If the private offer exceeds the 20% threshold, the homeowner may remain eligible for Citizens coverage, as long as all other requirements are met. This rule applies to both new and renewing policies and is a central component of the state’s efforts to reduce Citizens’ exposure and encourage private market participation.
What This Means for Homeowners
A proposed rate decrease from Citizens can be viewed as one indicator of broader market shifts. It should not automatically be interpreted as a signal to move toward Citizens coverage. Homeowners should consider several factors:
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Not All Policyholders Will See Reductions: Even if approved, rate changes vary by policy type and geography. Some Citizens personal policyholders may see relief, while others may not experience a reduction, and commercial lines could still see increases.
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Private Market Alternatives Remain Relevant: Private insurers continue to underwrite policies and compete on price and service. Citizens is designed as a backstop when the private market is not available, but it is often not the best fit for every homeowner.
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Coverage Decisions Should Be Informed: When choosing a property insurance provider, homeowners should consider overall coverage terms, long-term risk tolerance, and the financial stability of any carrier, including but not limited to Citizens.
Reviewing Your Coverage Strategy
Today’s Florida insurance market is more dynamic than it was just a few years ago, influenced by legislative reforms, litigation changes, and shifting reinsurance markets. Although headlines about rate movements may circulate widely, policy decisions should always be grounded in individual risk profiles and insurance needs.
If you would like help reviewing your Homeowners Insurance options for the upcoming year, our team of licensed Florida insurance brokers can help evaluate your coverage and discuss alternatives based on your specific situation.
Legal Disclaimer: Coverage terms, conditions, and exclusions vary by policy and insurer. The above material is for general educational purposes only and is not a substitute for professional insurance advice. The recommendation(s), advice, and contents of this material do not address every possible legal obligation, hazard, code violation, loss potential, or exception to best practice. SandStone Insurance Partners makes no warranty or representation that following any recommendations herein will render premises, property, or operations safe or legally compliant. Nothing in this material should be construed as establishing or confirming insurance coverage with SandStone Insurance Partners.
