LAKE WORTH BEACH, Fla. — Citizens Insurance has successfully moved about 355,000 policies off its books this year, with 42% of those homeowners transitioning to private insurers in Florida.
The state's insurer of last resort continues its aggressive depopulation efforts as it works to reduce financial exposure for Florida taxpayers.
WATCH BELOW: Citizens Insurance moves 350K Florida policies to private insurers
Ramsay MacLeod, a Lake Worth Beach homeowner, received her first takeout notice in April from Slide Insurance. The transition comes with a significant financial impact for the fixed-income resident.
"I received the final notice in April. There was an interest from Slide (Insurance)," MacLeod said. "And then there was another one, it's like, this is the demand, you're being dropped. You are going with Slide."
The takeout offer is capped at no more than a 20% increase over her current Citizens premium, but the financial burden remains substantial.
"I'm on a budget, a fixed income, and for me to get hit with an increase that I have to come up with almost $4,000 by February of next year just to still have insurance coverage. That's a big blow for me," MacLeod said.
The higher costs for homeowners translate to reduced financial exposure for Citizens and Florida residents who ultimately back the state insurer. Citizens has dramatically reduced its policy count from 1.4 million policies a couple of years ago to 482,570.
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Mark Friedlander of the Insurance Information Institute said lawsuit reforms have increased competition and stabilized Florida's volatile insurance market.
"Citizens cannot depopulate without a stable private market," Friedlander said.
The improved market conditions now provide homeowners with options they previously lacked.
"You have options now. Even a year ago, you may have had zero options other than accepting the takeout. Now you can shop it. ... Many don't realize, the market is much better," Friedlander said.
With 480,000 policies remaining, Citizens plans to continue issuing takeout offers in 2026 as it works toward further reducing its policy count.
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Matt Sczesny is determined every day to help you find solutions in Florida's coverage collapse. If you have a question or comment on homeowners insurance, you can reach out to him any time.
