Florida’s state-run insurer, Citizens Property Insurance Corporation, has shed more than 600,000 policies since 2023 — a dramatic shift that signals major changes ahead for homeowners across the state.
According to information presented by the Florida Office of Insurance Regulation, in September 2023, Citizens carried more than 1.4 million policies, making it the largest insurer in Florida. Today, that number has fallen below 780,000 for the first time in years. The drop comes as private insurers re-enter Florida’s shaky market, taking thousands of policies off Citizens’ books each month.
“Our state’s insurance market is thriving—with 17 new companies since reforms and sustained rate requests from dozens of companies for rate decreases or 0% increases,” said Commissioner Mike Yaworsky.
Two new companies — Stand Insurance Exchange, based in Tallahassee, and Praxis Reciprocal Exchange, based in Tampa — have just been approved to write policies in Florida. Together, they plan to absorb 50,000 Citizens policies this December alone.
Regulators say the influx of private companies could mark a turning point for homeowners who have been crushed by soaring premiums and limited coverage options. Since January 2024, 30 insurers have filed for rate decreases and 45 others requested no increases. Florida Peninsula, one of the state’s largest insurers, has even asked for its biggest cut in company history: an average 8.4% decrease for homeowners, and a 12% drop for condo owners.
“Florida’s insurance market continues to strengthen. When new companies enter the insurance market, they create more competition in the marketplace for the business of Florida homeowners and, therefore, help to drive down insurance rates. I am proud to see the list of companies doing business in Florida continue to grow,” said Chief Financial Officer Blaise Ingoglia.
But for many Floridians, the big question remains: will the return of private insurers actually bring lasting relief — or just shuffle policies without solving the affordability crisis?
One area where doubts remain is with homes that carry special conditions, such as sinkhole damage. Repaired sinkhole properties are common across Florida, but they are notoriously difficult to insure. Even when repairs meet state standards, many private companies are hesitant to take on the risk — leaving homeowners with limited or costly options. Citizens was one of the few major insurers that would still insure repaired sinkhole properties.
That means while average homeowners might see modest rate decreases, families living in these higher-risk properties could still struggle to secure coverage. And if Citizens continues to shed policies at this pace, those homeowners may be left with fewer safety nets than ever before.
Are you hopeful for this shift in insurance carriers or are you one of the many who are worried about what’s next? Let us know in the comments below.
This is questionably good news. As a resident of THE Florida Keys of 85 years and a veteran of multiple hurricanes, I am very concerned that these new companies will not have the needed financial resources to pay their policy holders after a major hurricane. This has happened in the past that when called upon to pay damages, companies went insolvent and could not/did not pay their policy holders.