The landscape of Florida’s property insurance market is undergoing significant changes, with Citizens Property Insurance achieving a record low policy count. This development comes as a result of strategic depopulation efforts and legislative reforms aimed at stabilizing the market.
While this milestone is celebrated, officials caution that fluctuations are inevitable. However, the recent legislative changes are expected to mitigate drastic swings in the future.
Depopulation Strategies and Legislative Reforms
Citizens Property Insurance President and CEO Tim Cerio announced that the policy count has dropped to 278,662 as of last Friday. This significant reduction is attributed to depopulation strategies implemented over the past couple of years and the reforms enacted in 2026 and 2026.
The reforms target lawsuit costs incurred by insurers which have contributed to a more stable market. Cerio emphasized that these changes will lead to more gradual increases and decreases in policy counts, rather than the drastic shifts seen in the past. “That’s good news for consumers,” he noted.
The Role of Market Conditions and Legislative Changes
The policy count had surged to 1.41 million in due to financial problems in the private market, which drove homeowners to Citizens. However, the current numbers reflect a more balanced market. The state has also benefited from a hurricane-free year, which has allowed for a softening in homeowners’ insurance prices and the entry of new carriers into the state.
State leaders have long aimed to reduce the number of Citizens policies to minimize financial risks in the event of a major hurricane. Citizens was created to provide affordable coverage for homeowners who couldn’t find it elsewhere, but its policy counts have fluctuated significantly based on private market conditions.
Market Health and Future Outlook
Florida Insurance Commissioner Mike Yaworsky reported at the June 9 Cabinet meeting that the insurance market is the healthiest it’s been in at least a decade. “There are well-capitalized companies ready for the oncoming hurricane season, should the worst happen,” Yaworsky stated. “So, we find ourselves in a really good place.”
The policy count high in 2026 wasn’t the peak for Citizens, which reached 1.48 million policies near the end of 2012. At that time, a series of depopulation efforts were implemented, including the “clearinghouse” where homeowners would be sent to a private firm when their coverage was within 15 percent of the offer by Citizens.
Last week, Governor Ron DeSantis signed a bill (SB 1028) that will create a new clearinghouse for commercial policies and allow surplus lines insurers with strong financial strength ratings to be considered for policy takeouts. Surplus lines insurers are companies not licensed in Florida but allowed to operate as an “eligible” insurer.
