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Citizens vs. Private Homeowner's Insurance in Florida: Should You Use Citizens?

Updated for 2026 · Home Insurance · verified Florida pricing + warranty details

The 30-Second Verdict

Citizens is the insurer of last resort — use it only when private market options are unavailable or unaffordable. Private insurers offer better claims handling and more flexible coverage. Florida's private insurance market is recovering after 2022 reforms, so check both before defaulting to Citizens.

Head-to-Head Breakdown

Citizens Property Insurance

Pros

  • Available statewide as insurer of last resort
  • Often lower premium than remaining private market options for hard-to-insure properties
  • Government-backed — unlikely to become insolvent
  • Accepting applications when private market has withdrawn
  • Required to offer coverage to eligible properties

Cons

  • Coverage is often less comprehensive than private alternatives
  • Citizens is actively depopulating — may offer your policy to a private insurer at renewal
  • Slower claims handling than some private insurers in post-storm scenarios
  • If Citizens becomes insolvent, all FL policyholders pay assessments
  • Eligibility requires dwelling coverage below market value caps
  • Limited flexibility in coverage customization
Private Homeowner's Insurance

Pros

  • More comprehensive coverage options
  • Generally faster claims handling
  • Policy doesn't transfer to Citizens (stable relationship)
  • More flexible endorsements and riders
  • Competition among carriers drives pricing in stable markets

Cons

  • Many insurers have exited Florida market (2020–2022 crisis)
  • Premiums have increased dramatically — statewide average up 40%+ in 3 years
  • Some carriers only write in certain Florida regions
  • Carrier insolvency risk (several FL insurers failed 2021–2022)
  • Premium variation is enormous — same property, $3,000–$12,000 range common

Side-by-Side Comparison

Citizens Property InsurancePrivate Homeowner's Insurance
FactorCitizensPrivate Insurer
AvailabilityStatewide (insurer of last resort)Varies by carrier and region
Average Florida premium$2,000–$5,000$3,000–$8,000+
Coverage breadthStandard (limited customization)Broader options
Solvency riskVery low (government-backed)Moderate (carrier-dependent)
Claims speedSlower post-major stormGenerally faster
Policy stabilityMay depopulate at renewalGenerally stable
Best forHard-to-insure propertiesMost Florida homeowners

Frequently Asked Questions

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