Understanding Florida’s Citizens Insurance 20 Percent Rule

If you’re a Florida homeowner, you’ve probably heard of Citizens Property Insurance Corporation — often called “Citizens.” It’s the state-backed insurer of last resort. Citizens provides coverage when homeowners can’t find an affordable policy in the private market.

If you currently have a Citizens policy or are considering one, there’s an important regulation you need to know: the Citizens Insurance 20 Percent Rule. This rule affects whether you can keep your Citizens policy or must switch to a private insurer.

In this article, we’ll explain what the 20% Rule means, how it works, and how Choice One Insurance can help you navigate it.

What Is the Citizens 20 Percent Rule?

The 20 Percent Rule is a Florida law that decides whether you can remain with Citizens or must switch to a private-market insurer.

How the Rule Works

If a private insurance company offers a policy within 20 percent of your Citizens renewal premium, you must accept the private policy.
If the private offer exceeds your Citizens premium by more than 20 percent, you can remain with Citizens — but you must act to confirm your choice.

This rule applies at both the initial coverage stage and during policy renewal. It encourages homeowners to move to the private market whenever possible, reducing the financial risk for Citizens.

Why This Rule Exists

Citizens Property Insurance was created to help Floridians who could not find affordable coverage in the private market. This is especially important in areas prone to hurricanes and storm damage.

Over time, Citizens grew into one of the largest insurers in Florida, increasing the risk to taxpayers. The 20% Rule is part of a “depopulation” effort. It nudges homeowners to switch to private carriers when price differences are small. This strategy stabilizes Florida’s insurance market while still giving homeowners options.

What This Means for Homeowners

Receiving a letter from Citizens or a private insurer is not routine mail. It could be a policy takeout notice, which triggers the 20 Percent Rule.

Within 20% Difference → You must switch to the private insurer.
More than 20% Higher → You may stay with Citizens but must respond promptly.

Important: Premiums aren’t the only factor. Private insurers may offer different deductibles, exclusions, or coverage terms. A similar price doesn’t always mean equal coverage.

How to Compare Citizens vs. Private Market Offers

Ask these questions when evaluating your options:

Coverage Match – Does the private policy cover the same perils and limits?
Deductibles – Is the hurricane or all-perils deductible higher?
Exclusions – Are there restrictions on water damage, windstorm coverage, or roof age?
Financial Strength – Is the private carrier rated well by AM Best or Demotech?
Future Rate Stability – Has the insurer recently requested large rate increases?

These differences can impact your out-of-pocket costs during a claim.

How Choice One Insurance Helps Homeowners

At Choice One Insurance, we help Florida homeowners understand their insurance options. We simplify the 20% Rule, especially when deadlines are tight.

Our Approach

Side-by-Side Comparisons – We explain Citizens and private offers in plain language.
Policy Guidance – We highlight gaps or coverage differences.
Action Planning – We help you respond before deadlines pass.
Market Access – We work with multiple private carriers to find better options.

With our expertise, you can confidently choose the right policy for your home and budget.

Why Acting Quickly Matters

Takeout offers usually give you 30 days to respond. Ignoring the notice can result in an automatic switch to the private carrier, even if you prefer to stay with Citizens.

Contact Choice One Insurance immediately after receiving an offer. We review the details, compare policies, and guide you to take the right action before the deadline.

The Bottom Line

The Citizens 20 Percent Rule is a key part of Florida’s insurance landscape. While it encourages homeowners to move to private coverage, it also requires quick, informed decisions.

At Choice One Insurance, we ensure you don’t just comply with the rule — you make the best choice for your home, finances, and peace of mind.

Ready to review your options? Visit choiceoneinsurance.net or call us today. We’ll guide you through the 20 Percent Rule and help secure the right coverage for your home.