Florida's state-backed insurer of last resort has sent 45,000 non-renewal notices to homeowners statewide. The letters are part of a deliberate plan to shrink Citizens Property Insurance Corporation's policy count. Brokers are squarely in the path of displaced clients who need somewhere to go.
The notices, reported by ABC affiliate WBBH, are part of Citizens' ongoing depopulation program. Citizens peaked at approximately 1.4 million policies in September 2023. Its count now stands at approximately 270,000, reflecting successive depopulation rounds and improving private market conditions. Clients who receive notices have roughly a year to find replacement coverage.
Florida law requires Citizens customers to accept a private insurer's offer if that offer is priced within 20% of their Citizens premium. That cap sounds protective. But Citizens has historically charged less than the private market, which means a client moved to a private carrier may face a higher bill even before the 20% threshold applies.
Michael Peltier, spokesperson for Citizens Insurance, acknowledged the pricing gap. "I think this is the latest indication that the market is getting healthier. There's more competition out there," Peltier told WBBH. He confirmed that private market premiums are often higher than Citizens' rates. That is the broker conversation - clients who expect to pay Citizens-equivalent premiums in the private market will need their expectations reset.
The coverage-adequacy problem runs alongside the cost issue. James Hembree, a North Fort Myers resident, told WBBH he pays $3,200 annually for $75,000 of coverage on a home that cost close to $150,000. That shortfall is a conversation brokers will need to initiate rather than wait for clients to raise.
The broader Florida property market has improved. According to the Florida Office of Insurance Regulation (OIR), the statewide average homeowner's premium, including wind coverage, is $3,815, based on April data. Average premiums fell in 51 of Florida's 67 counties in the first half of 2026, according to the Insurance Information Institute. Twenty-one carriers have entered the Florida market since the 2022 and 2023 legislative reforms, creating new placement options for brokers working with displaced Citizens policyholders.
Those reforms ended one-way attorney fees and assignment-of-benefit arrangements that had driven private carriers out of the state. Florida domestic property insurers posted a combined ratio of approximately 77% in 2025, according to Guy Carpenter, aided by a quiet hurricane season.
For clients holding non-renewal letters today, market stabilization is context, rather than relief. "It's no secret to anyone that insurance in Florida is expensive," Peltier told WBBH. "We live in a hurricane-prone state with water on three sides."
Residents have approximately a year to review their options and secure replacement coverage. That window is the opportunity for brokers. Premium expectations will need careful management, particularly for older properties and coastal exposures where the gap between Citizens' rates and private market pricing tends to be widest.
Citizens and state regulators have been consistent. The insurer is returning to its intended role as a last-resort carrier. The window for subsidized Citizens coverage is closing for Florida homeowners. Brokers are the first call when it does.
