Citizens Property Insurance Review: Low Rates but Limited Coverage
Editor's Rating
Citizens Property Insurance is run by the Florida government. You'll only be eligible for a Citizens policy if you live in Florida and a private company won't offer you coverage at a competitive rate.
Citizens offers basic coverage for an affordable price. But homeowners complain about its difficult customer service, especially during the claims process.
However, if Citizens is your only option, it's better to be insured than uninsured.
Update: All homeowners who have Citizens Insurance will need to buy flood insurance by 2027. This requirement will roll out in stages. People living in a special flood hazard area (SFHA) will need flood insurance starting in 2023.
Every company ValuePenguin rates is measured in terms of prices, extra coverage options, customer service and unique value. Those metrics are combined using a unique formula to provide a clear picture of whether a given company is right for you.
What is Citizens Insurance?
Citizens Property Insurance is a nonprofit company run by the Florida state government.
Citizens is an "insurer of last resort." It only insures properties that private companies won't cover or won't provide affordable insurance for.
You can purchase a Citizens policy if:
- You can't get coverage from a Florida-authorized insurance company.
- Quotes from Florida-authorized insurance companies are more than 20% higher than similar coverage from Citizens.
You can only buy coverage through a Citizens Insurance agent. Your agent will need to show proof that you're eligible before you can buy a policy.
Citizens encourages Florida homeowners to buy private insurance if they can afford it. It even has online tools to help you find coverage elsewhere.
If you can get coverage from private companies but are eligible for Citizens, you should still shop around to see if there's a better fit for you.
Although you may pay higher rates, private companies are likely to have more coverage options and may offer more value for your money.
Citizens home insurance quotes
Citizens home insurance quotes are among the cheapest in the state.
However, you can only buy Citizens home insurance if you've compared quotes from other companies and they are at least 20% higher than a quote from Citizens.
To find out if you qualify, your Citizens agent will enter your info into the Citizens Clearinghouse program. The Clearinghouse will give you a rate for Citizens Insurance, along with quotes from any private companies that will offer you coverage.
Find Cheap Homeowners Insurance in Florida
Home insurance rates by dwelling coverage amount
$150,000 home with wind mitigation
$150,000 home with no wind mitigation
$300,000 home
Company | Annual rate | ||
|---|---|---|---|
| Allstate | $2,145 | |
| Citizens | $2,224 | |
| Liberty Mutual | $2,354 | |
| Farm Bureau | $2,574 | |
| State Farm | $3,276 | |
Rates are for a home built before 2001.
$150,000 home with wind mitigation
Company | Annual rate | ||
|---|---|---|---|
|
| Allstate | $2,145 | |
|
| Citizens | $2,224 | |
|
| Liberty Mutual | $2,354 | |
|
| Farm Bureau | $2,574 | |
|
| State Farm | $3,276 | |
Rates are for a home built before 2001.
$150,000 home with no wind mitigation
Company | Annual rate | ||
|---|---|---|---|
|
| Citizens | $4,299 | |
|
| Allstate | $4,345 | |
|
| Liberty Mutual | $4,685 | |
|
| State Farm | $5,537 | |
| Security First | $6,983 | |
Rates are for a home built before 2001.
$300,000 home
Company | Annual rate | ||
|---|---|---|---|
|
| Allstate | $3,448 | |
|
| Farm Bureau | $3,938 | |
|
| Citizens | $4,880 | |
|
| State Farm | $4,964 | |
|
| Liberty Mutual | $5,184 | |
Rates are for a newly built home.
One downside to shopping with Citizens Insurance is that you can't get a home insurance quote online. If you want to get a Citizens quote, you'll have to contact an agent.
Citizens home insurance discounts
Citizens only gives discounts for adding safety features to your home, like hurricane shutters or an alarm system.
Citizens doesn't have many discounts compared to most insurance companies.
- Alarm system discount: Get a cheaper rate if you have a centrally monitored fire or burglar alarm.
- Florida building code compliance discount: Save money if your home was built after Jan. 1, 2002, or if it has a new roof that meets the 2002 building code.
- Roof construction discount: Save money based on the shape of your roof and its building materials. You may have to have a roof or wind mitigation inspection to qualify. And you can only get this discount if you don't qualify for the building code compliance discount.
- Wind mitigation discount: Get a discount for having features like storm shutters and hip roofs that lower the risks of wind damage. To be eligible for this discount, you have to have a wind mitigation inspection.
Because Citizens only sells property insurance, you can't get a discount by bundling your home policy with other types of insurance, like car or umbrella insurance.
Citizens Property Insurance coverage
Citizens Insurance offers the basic coverage you would expect from a homeowners insurance policy, with a few exceptions.
Citizens gives homeowners a few ways to customize their coverage. But these add-ons aren't available to everyone.
Replacement cost coverage
Replacement cost coverage will help pay to rebuild your home after a total loss, like a fire, even if it costs more than your policy limits. In comparison, most policies will pay you based on the home's actual cash value, which takes wear and tear into consideration.
Personal property replacement cost
Personal property replacement cost will pay to replace your belongings with brand new items if they're destroyed or stolen. With personal property replacement cost, Citizens won't factor wear and tear into your claim payout. In comparison, a basic policy will usually only pay enough for you to buy used items.
Sinkhole loss coverage
Sinkhole loss coverage pays for damage to your home from the sinking or settling of the ground's surface. However, the deductible is 10% of your dwelling coverage limit. That means it will only make sense to file a sinkhole claim if you have major damage.
Ordinance or law coverage
Ordinance or law coverage pays to update your home to be in compliance with current building codes and regulations if it's damaged or destroyed.
In addition, some Citizens policies include extra coverage, like debris removal and identity theft coverage. But Citizens doesn't provide any info about who is eligible for these upgrades.
Citizens hurricane insurance
Citizens includes coverage for hurricane damage in its basic homeowners insurance policy.
Citizens Property has a separate deductible for hurricane damage. That means you may have to pay more money out of pocket if you make a claim related to hurricane damage. This is typical for hurricane coverage from other insurance companies, too.
Citizens Property Insurance deductible options
Deductible | Options |
|---|---|
| Hurricane deductible | Either $500 or 2%, 5%
or 10% of your dwelling coverage limit |
| All other damage | $500, $1,000 or $2,500 |
But homeowners insurance does not cover flood damage.
All Citizens customers will need to have flood insurance by 2027, even if they don't live in a high-risk area. You'll have to buy flood insurance separately, either from the National Flood Insurance Program (NFIP) or from a private flood insurance company.
Citizens flood insurance requirement
In December 2022, Florida passed a bill that requires all Citizens customers to have flood insurance. As a Citizens customer, you'll have to have flood coverage even if you don't live in a high-risk area.
The average cost of flood insurance in Florida is $910 per year for a policy from the National Flood Insurance Program.
The requirement is rolling out in stages, so not all homeowners have to buy flood insurance right away.
New Citizens customers and people who live in a special flood hazard area (SFHA) were affected by this change first. This includes people living in flood zones that start with an "A" or "V," like AO or VE. These areas have the highest risk of flooding. They're typically located along the coast or by a large body of water, like a lake or river.
When will Citizens require me to have flood insurance?
- April 1, 2023: New customers with homes in a special flood hazard area (SFHA)
- July 1, 2023: Homes in an SFHA flood zone with wind coverage
- Jan. 1, 2024: Homes insured for $600,000 or more
- Jan. 1, 2025: Homes insured for $500,000 or more
- Jan. 1, 2026: Homes insured for $400,000 or more
- Jan. 1, 2027: All Citizens customers
Citizens customers can buy Florida flood insurance from the National Flood Insurance Program (NFIP) or a private flood insurance company.
Private flood insurance is usually the best option because it tends to offer higher coverage limits and cheaper rates. However, private companies may not cover homes in very risky areas, like those located right on the coast.
If you're having a hard time finding flood protection, you should be able to get coverage from the NFIP.
Citizens Insurance home inspections
Citizens may require a Florida-licensed inspector to check out your home. Whether you'll need an inspection depends on the:
- Coverage you need
- Age and location of your home
- Discounts you qualify for
There are five types of inspections that Citizens may require you to get.
- Four-point inspection: Required for all homes more than 30 years old. The four points refer to your home's electrical system, plumbing, heating and cooling system and roof.
- High-value inspection: If your home would cost $650,000 or more to rebuild, you may need a high-value inspection. This is because a Citizens policy may not offer enough coverage to properly protect your home, given its maximum dwelling coverage of $700,000.
- Roof inspection: If your roof is older than 25 years (shingle or other type) or 50 years (tile, slate, clay, concrete or metal), you will need an inspection. Your roof must have at least three years of remaining useful life before Citizens will write a policy on your home. The inspector will need to complete a form verifying that your roof meets Citizens' requirements.
- Wind-damage mitigation inspection: Citizens offers a discount for storm shutters, roof clips and other wind mitigation features. If you're looking for a discount on your policy, you'll have to get an inspection to document the features.
- Sinkhole inspection: If you want to add sinkhole loss coverage to your policy, you'll have to get an inspection to see if your home is eligible for this coverage.
Citizens home insurance customer service reviews and ratings
Citizens has a lot of customer complaints, especially when it comes to the claims process.
The company gets more than four times as many complaints as average insurance companies of a similar size, according to the National Association of Insurance Commissioners (NAIC) complaint index.
However, that's about average for a major home insurance company in Florida. Tower Hill is the only company that gets fewer complaints than expected based on its size.
Company | Complaint index (lower is better) |
|---|---|
| Tower Hill | 0.55 |
| Slide | 1.05 |
| First Protective | 2.73 |
| Allstate | 4.14 |
| Citizens | 4.28 |
As a government-backed nonprofit entity, Citizens has excellent financial stability.
That's partially because it's able to increase rates for all customers in an emergency. This means it is very likely Citizens will be able to pay your claim given its ability to raise money after a disaster. The downside is that it would be raising this money by charging you higher rates.
How to file a claim and pay bills with Citizens Property Insurance
Citizens customers can file a claim online or by phone. And you can pay your bill online, by phone or by mail.
- If you prefer to file a claim online, you can go on to the Citizens Property Insurance website and log in to myPolicy. This platform can also be used to view your policy and pay your bill online.
- If you want to report a claim or pay your bill by phone, you can call Citizens' property insurance 24/7 phone number at 866-411-2742.
- If you want to pay your bill by mail, you can pay using personal and cashier's checks mailed to the Citizens Property Insurance Corp. address in Jacksonville, Florida, or, for overnight payments, directly to the payment processing department in the same city.
Citizens fees, rate changes and cancellations
As a Citizens customer, you could see a sudden increase in your home insurance rates after a major statewide disaster.
Citizens saves a certain percentage of its income to pay for future storm claims. These savings are called reserves. A major storm, or lots of storms over a short time period, could wipe out those reserves. In this situation, Florida law requires Citizens to increase its rates until its storm reserves are back to normal levels. This increase is called an assessment.
The first increase could raise your home insurance rates by up to 45%. This means that a Citizens customer who pays $1,000 per year for coverage could see a $450 increase. In extreme scenarios, there could be emergency assessments charged on top of this over multiple years.
Private market insurance has its risks too. Companies can decide to stop offering coverage in high-risk areas or raise rates to cover their losses.
Citizens is confident that it could handle both a 1-in-100-year storm and a 1-in-28-year storm without having to charge customers extra. Though Citizens offers affordable rates, it's important to be aware of the effect that extreme weather scenarios could have on your insurance costs.
Citizens Insurance predicts that customers will see rate increases each year. People living in vulnerable areas near the southern coast, like Miami, may see rates increase by about 10% each year. On the other hand, customers in inland areas outside of South Florida may see rates go down.
Citizens also helps homeowners find private home insurance coverage in a process called "depopulation." When it finds private companies that are willing to cover you, you will get a letter from Citizens letting you know that one or more companies would like to take over your policy.
In this case, you should review all your options, including potentially staying with Citizens. If you get this letter but would like to remain with Citizens Insurance, you can fill out an opt-out form as long as you are still eligible.
Citizens has also recently started canceling policies with more than $700,000 of dwelling coverage. So far this has been limited to less than 1% of policies in some Florida counties. If your home value has increased to close to the maximum coverage level, now might be the time to start shopping for a new home insurance company.
Citizens wind insurance and other alternate policies
Citizens offers wind-only policies for eligible homeowners. It also has property insurance for people living in different types of homes, like condos and mobile homes.
Frequently asked questions
Who owns Citizens Property Insurance?
Citizens is run by the state of Florida, which means customers don't have to worry about its ability to pay out claims. But it also means that Citizens can raise rates for all of its customers to help pay for a disaster, which can be expensive.
Is Citizens Insurance good?
Citizens Insurance is a good option for Florida homeowners who can't find cheap coverage elsewhere. For some people, Citizens may be the only way to protect a home. But its coverage is limited, and Citizens gets a lot of complaints about its claims process.
Methodology
To compare Citizens Insurance quotes, we gathered rates from the Florida Office of Insurance Regulation. Quotes are for three different home types:
- A home valued at $150,000 with no wind mitigation features, built before 2001
- A home valued at $150,000 with wind mitigation features, built before 2001
- A newly built home valued at $300,000
Rates are for the five Florida counties with the largest number of Citizens Insurance policies, according to Citizens.
- Miami-Dade
- Broward
- Pinellas
- Palm Beach
- Hillsborough