Citizens Insurance Takeout Letters: South Florida 2026 Guide

If you own a home in Hollywood, Hallandale, Aventura, or anywhere else in South Florida and you're insured through Citizens Property Insurance, there's a good chance you've recently received — or will soon receive — a takeout offer from a private insurer.

At Sell It Realty, we field this question every week. Buyers under contract get spooked when the seller's Citizens policy can't be assumed. Sellers wonder if they should switch before listing. Homeowners just trying to renew are confused by the paperwork showing up in their mailbox.

Here's the plain-English version of what's happening, what the law says, and what you should actually do.

What changed: Citizens went from 1.42 million policies to under 400,000

Citizens Property Insurance was created as Florida's insurer of last resort. For years, as private carriers fled the state, Citizens ballooned to 1.42 million policies at its peak in October 2023. That's a problem — Citizens isn't supposed to be the biggest insurer in Florida, and if a major hurricane hits, every Florida policyholder (Citizens or not) can be hit with an assessment to cover the shortfall.

The state's response was an aggressive depopulation program. By the end of January 2026, Citizens was down to roughly 392,000 policies — a drop of more than 70% in about two years. In 2025 alone, around 546,000 policies were transferred to private carriers. Seventeen new insurance companies have entered the Florida market since the reforms began.

The practical result for South Florida homeowners: takeout offers in the mail, and a set of rules that catch most people off guard.

The 20% takeout rule — why you might not have a choice

This is the part most homeowners don't realize until it's too late.

Under Florida law, you cannot remain with Citizens if a private insurer offers you a policy priced within 20% of your current Citizens premium. If a takeout offer lands in your mailbox and meets that threshold, you are automatically ineligible for Citizens coverage. It's not optional.

✅ Pro tip: If you receive a takeout letter, read it the same day. You usually have a short window — often around 30 days — to either accept the new carrier or opt out if the premium is more than 20% higher. Miss that window and the transfer happens automatically.

At Sell It Realty, we see homeowners ignore these letters thinking they're junk mail. They're not.

The good news: rates are actually coming down in 2026

For the first time in years, the headlines aren't all bad. Citizens has filed for an average statewide rate reduction of 8.7% for 2026. For Miami-Dade homeowners specifically, the average reduction filed is around 13.9% — which works out to roughly $834 per year of savings on a $6,000 annual premium.

Broward and Palm Beach are seeing smaller but meaningful reductions as well. The combination of reinsurance market softening and the dramatic reduction in Citizens' exposure is finally pulling premiums in the right direction.

That said: don't confuse a rate filing with a guaranteed cut on your specific policy. Your individual premium depends on your home's age, roof condition, location, claim history, and a dozen other factors. The 8.7% statewide average can easily turn into a 0% change — or even an increase — for an older home with a roof past its useful life.

What this means if you're buying a home in South Florida right now

If you're under contract on a home in Hollywood, Aventura, Cooper City, or anywhere in our service area, insurance should be one of the first things you investigate — not the last.

Step 1: Get a quote before you remove the inspection contingency

Never wait until a week before closing to get insurance quotes. A quote based on a four-point inspection or wind mitigation report can vary wildly from a quick online estimate.

Step 2: Ask about the seller's current carrier

If the seller is on Citizens, ask what their renewal date is and whether they've received any takeout offers. This matters because Citizens policies generally cannot be assumed by the buyer — you'll need a new policy in your name regardless.

Step 3: Check the roof age and 4-point status

Most private carriers in Florida won't write a policy on a roof older than 15 years (some draw the line at 10 for shingle roofs). If you're buying an older home in Hollywood Lakes or one of the established Hallandale neighborhoods, this is the single biggest insurance variable.

Step 4: Get at least three quotes

Private market, Citizens (if eligible), and at least one surplus lines option. The spread between cheapest and most expensive is often 40% or more for identical coverage.

Need help thinking through any of this? Request a home valuation and we'll walk you through the insurance picture for the specific property you're considering.

What this means if you're selling a home in South Florida

If you're listing a home with a Citizens policy, here's what we tell every seller at Sell It Realty:

⚠️ Warning: Citizens cannot be assumed by the buyer in Florida. Your buyer will need their own policy, full stop. If the home has insurability issues — old roof, prior claims, low elevation in a flood zone — those issues will show up at the worst possible moment, usually 10 days before closing.

The smart move is to get ahead of it:

• Pull a wind mitigation report yourself before listing. It costs $75–$150 and tells buyers (and their insurance agents) exactly what discounts the home qualifies for.
• If your roof is 12+ years old, get a roof inspection. A clean roof inspection can be the difference between a buyer getting insurance and the deal falling apart.
• Disclose any prior claims clearly. A CLUE report will surface them anyway, and an honest seller's disclosure protects you legally.

What this means if you're a current homeowner not selling

If you're staying put and just trying to manage your insurance:

1. Open every piece of mail from Citizens or any insurance company. The takeout window is short.

2. If you get a takeout offer, compare apples to apples. Coverage limits, deductibles (especially the hurricane deductible), and exclusions matter as much as premium.

3. Talk to an independent agent. A captive agent only sells one company; an independent agent can shop 10+ carriers and tell you honestly where the best fit is.

4. Don't drop wind coverage to save money. Every year someone in South Florida does this and regrets it the next hurricane season.

Hollywood, Hallandale, and Aventura: the local picture

Within our service area, the insurance picture varies block to block:

• Hollywood Lakes and east-of-US-1 neighborhoods tend to have older homes and higher wind exposure — premiums here are often the highest in Broward, but the new private market entrants are starting to compete more aggressively.
• Cooper City has newer construction and inland location — generally lower premiums and more carrier options.
• Aventura and Hallandale Beach condos are a different animal entirely. Master policies and the condo association's reserves and 40-year recertification status drive most of the insurance picture, not the individual unit.
• Sunny Isles and Bal Harbour oceanfront properties remain the most expensive and the trickiest to insure — sometimes requiring surplus lines coverage even for well-qualified buyers.

The bottom line

2026 is the first year in a long time where the Florida insurance story is mostly positive: rates trending down, more carriers in the market, Citizens shrinking back toward its intended role. But the rules around takeout offers and the 20% rule trip up homeowners constantly.

If you've received a takeout letter and aren't sure what to do, or if you're trying to figure out the insurance picture on a home you're thinking about buying or selling in South Florida, call Adi directly at 305-409-1305 or request a home valuation. We work with insurance agents across the South Florida market and can point you toward someone who'll give you straight answers.

The insurance market is finally moving in the right direction. The homeowners who pay attention to the details are the ones who'll benefit.

For more on related topics, see our guides on South Florida hurricane preparation and the Florida property insurance crisis update.