What is the Role of Citizens Insurance in Florida?

Citizens Property Insurance Corporation, commonly known as Citizens, is a not-for-profit, tax-exempt government entity created by the Florida Legislature in 2002. The purpose of the organization is to provide insurance coverage to those who cannot obtain insurance from private companies due to high risk factors or other reasons. Citizens operates as an insurer of last resort and has become a critical safety net for Florida homeowners, particularly those living in high-risk areas.

Florida is prone to severe weather events such as hurricanes, floods, and thunderstorms, and the state’s coastal regions are especially vulnerable to storm surges. These natural disasters can cause extensive damage to homes, leading to high insurance claims. Private insurers often avoid writing policies for high-risk properties, leaving homeowners with no coverage or limited options.

Citizens fills this gap by providing property insurance to these high-risk properties. The organization also provides coverage for commercial properties and condominium associations. Citizens is backed by the state of Florida, which helps the organization to provide coverage to its policyholders at affordable rates.

Citizens is also responsible for ensuring that policyholders are adequately insured. The organization provides policyholders with tools and resources to help them understand their coverage options and make informed decisions about their insurance needs. Additionally, Citizens offers training and educational programs for insurance agents to help them better serve their clients.

One of the primary goals of Citizens is to depopulate, or reduce, the number of policies it carries. The organization aims to achieve this goal by encouraging policyholders to seek coverage from private insurers. Citizens offers incentives to policyholders who find alternative coverage, such as lower rates and reduced deductibles. By reducing the number of policies it carries, Citizens can reduce its financial risk and increase its ability to pay claims in the event of a catastrophic event.

In conclusion, Citizens plays a vital role in Florida’s insurance market by providing coverage to homeowners, businesses, and condominium associations that are unable to obtain insurance from private insurers. The organization’s goal is to ensure that policyholders have access to adequate insurance coverage at affordable rates and to reduce its financial risk by depopulating its policies. As Florida continues to face natural disasters and high-risk weather events, Citizens will remain a critical safety net for those in need of property insurance.