Citizens’ policy count drops below 1 million

Citizens Property Insurance Corporation’s policy count has dropped to 987,650 as of November 29, 2024, marking the first time in over two years it has fallen below 1 million. The decline reflects improvements in Florida’s property insurance market and the effectiveness of the Citizens Depopulation Program, which has transferred over 428,000 policies to private insurers since January 2024.

The decrease also signals a slowdown in new policy entries into Citizens, driven by increased interest from private insurers to expand in Florida. Citizens President and CEO Tim Cerio commented, “As Citizens shrinks, so does the risk of assessments on Floridians who are not Citizens policyholders. This should be welcome news to all.”

The policy count is down 19.5% from January 2024, reducing Citizens’ exposure by nearly $200 billion. The upcoming December depopulation is expected to bring the count closer to 900,000 by year-end.

During a quarterly board meeting, Cerio also addressed claims handling, noting that Citizens has denied 13.2% of claims following storms Debby, Helene, and Milton. Many denials were due to lack of coverage, particularly for flood damage, which Citizens does not insure. Media reports of higher denial rates were attributed to mischaracterizations of withdrawn, duplicate, or invalid claims.

As Florida’s insurer of last resort, Citizens faces a higher denial rate than private insurers due to its coverage limitations and role in flood-prone regions. Policyholders are often encouraged to file claims below deductible thresholds to qualify for FEMA assistance, further influencing denial statistics.