Florida Statute 627.351: Citizens Property Insurance Corporation

What does Fla. Stat. 627.351 do?

Fla. Stat. 627.351 is titled "Insurance risk apportionment plans." Its subsection (6) creates and governs Citizens Property Insurance Corporation, the state-backed insurer of last resort for Florida property owners who cannot find coverage in the private market. Citizens is not a private carrier; it is a government entity whose eligibility rules, rates, and depopulation program are all set by this statute.

For policyholders, three practical questions flow from it: who can buy a Citizens policy, how much Citizens can raise your rate each year, and how Citizens can move your policy back to a private insurer through "depopulation."

Who is eligible for a Citizens policy?

Citizens is coverage of last resort, so the statute keeps you out when the private market will cover you at a competitive price. The eligibility rule lives at 627.351(6)(c)5.a. and turns on a price comparison, not a vague "no reasonable offer" standard. In plain terms:

If you cannot obtain such an offer, you are eligible for a standard policy including wind coverage, or a basic policy including wind coverage. If a risk could not be insured under a standard policy regardless of market conditions, it is eligible for a basic policy including wind coverage.

What is the Citizens rate "glide path"?

"Glide path" is industry shorthand, not statutory language. The statute at 627.351(6)(n)5. caps how much Citizens can raise the rate on any single policy each year, notwithstanding the board's recommendation or the Office of Insurance Regulation's final order:

The cap excludes sinkhole coverage, coverage changes, and surcharges. It is a ceiling on top of certain adjustments, not instead of them: under 627.351(6)(n)6. Citizens may add an increase to reflect the Florida Hurricane Catastrophe Fund cash buildup factor, and the capped-rate regime ends for a line of business once Citizens reaches actuarially sound rates.

One carve-out matters if the property is not your home. Under 627.351(6)(n)8., new or renewal personal lines policies that do not cover a primary residence are not subject to the glide-path cap, but may not be charged more than 50 percent above, nor less than, the prior year's established Citizens rate.

What is depopulation, and can Citizens move your policy to a private insurer?

Yes. "Depopulation," also called "take-out," is the statutory program that shifts policies from Citizens back to private carriers. Citizens may offer credits and incentives to insurers that take risks out of the corporation and keep them out, and under 627.351(6)(q) any "take-out bonus" or payment must be conditioned on the property being insured for at least 5 years by the insurer, unless you cancel or the insurer nonrenews.

Once you receive a take-out offer from an authorized insurer, the same 20 percent test governs: under 627.351(6)(ii)3. the risk is no longer eligible for Citizens unless the private premium is more than 20 percent greater than Citizens' renewal premium for comparable coverage. At the program level, the Office of Insurance Regulation reviews whether a take-out insurer's premium is more than 20 percent greater than comparable Citizens coverage before approving the program.

What notice do you get before a take-out?

The statute builds in transparency. Under 627.351(6)(ii)4., Citizens must give written notice to you and your agent of record about every insurer requesting to take out your policy. For each offer, the notice must include the estimated premium, a description of the coverage, and a comparison of the offered premium and coverage to Citizens' estimated premium and coverage. That comparison is your tool for deciding whether a take-out offer is actually as good as, or better than, staying with Citizens.

How does Ocean Point handle Citizens claims?

We represent policyholders, including Citizens policyholders, in first-party property claims. Citizens is a large, process-driven insurer, and its adjusters use the same estimating platforms and the same underpayment and delay patterns you see with private carriers. Our team documents the loss independently, prepares a line-item estimate, and negotiates the claim to its correct value. When the file stalls or the offer comes in low, we use the same statutory tools available on any Florida property claim, including mediation and appraisal.

Ocean Point Claims holds Florida DFS firm license W829547, has 21 years of first-party claims experience, has handled 500+ mediations, and is a member of FAPIA. Our primary public adjuster, Eli Goins, is licensed in Florida (license P159790).

Who this is for, and should you stay with Citizens?

This statute matters most if you were placed with Citizens because no private carrier would write you, if you just received a Citizens renewal with a rate increase, or if you got a depopulation take-out offer and are unsure whether to accept it. Read the take-out comparison notice carefully: the 20 percent test decides your eligibility, and an offer within 20 percent of your Citizens premium generally makes you ineligible to stay. On the claims side, being insured by Citizens does not change your leverage; the estimate, the documentation, and the negotiation still decide what you recover.

Bottom line: Citizens is a fallback, not a discount, and its eligibility, rate, and take-out rules are set by statute, not by your adjuster; when a Citizens claim is underpaid or stalled, get an independent valuation before you accept the number.