Your Citizens Policy Was Moved to a Private Insurer. What Changes If You Want to Sell?

Maybe a letter from Citizens named a private company that is taking over your policy. If you were already thinking about selling, you may wonder if this will hurt your sale.

You are not alone. Citizens had about 1.4 million policies in September 2023. As of September 18, 2026, it had about 255,000, according to Tallahassee Reports. In June 2026, Citizens said it held only about 2% of the state’s home insurance market. Hundreds of thousands of Florida owners now have a new carrier, new terms and a new deductible.

This guide is general information, not insurance or legal advice. A licensed insurance agent and a Florida real estate attorney can review your own papers.

What a Takeout or Clearinghouse Offer Is

Citizens is the state’s insurer of last resort. Florida wants it small, so private companies are allowed to take over, or “take out,” Citizens policies. Citizens calls this depopulation.

The takeout letter

When a private company picks your policy, you get a letter. The big rule is about price. Citizens says: if the private offer is within 20% of your estimated Citizens renewal premium, you cannot stay with Citizens. If it is more than 20% higher, you can choose to stay. To stay, you register your choice on the Citizens website or through your agent. As of September 2026, Insurance Business still described this 20% rule.

If you are allowed to stay but do nothing, Citizens says your policy will be assigned to the private company. Your coverage and premium stay the same until the term ends. The real changes show up when the new company renews you.

The clearinghouse

The Citizens clearinghouse is a second filter. Agents must shop every Citizens policy at renewal. If a private offer comes in within 20% of the Citizens renewal premium, the Citizens policy can be non-renewed and you must take other coverage. New buyers go through the same check before Citizens will insure them.

What to Compare Before You Sell

Citizens posts coverage comparison charts for each takeout company on its depopulation resources page. Use them, and ask your agent to walk you through these items:

• Premium. What is the new renewal price? A higher bill raises your cost while the house is for sale.
• Hurricane deductible. Florida insurers must offer a $500, 2%, 5% or 10% hurricane deductible, with some limits on higher value homes, says the Florida Department of Financial Services. The percent is of your dwelling coverage. On $300,000 of coverage, 2% is $6,000 and 10% is $30,000. If a storm hits while you are under contract, that number matters.
• Roof terms. Check for roof age limits, roof payment schedules, or a required inspection. Under Florida Statute 627.7011, an insurer may not refuse to issue or renew a policy solely because a roof is less than 15 years old. For a roof 15 years or older, you may get an inspection at your cost first. If it shows at least 5 years of useful life left, the insurer cannot refuse solely because of roof age.
• Coverage limits and exclusions. Look at dwelling coverage, water damage limits, and anything removed compared with your Citizens policy.

If you got a non-renewal instead of a takeout, read our guide on Florida home insurance non-renewal options.

How the Buyer’s Insurance Affects Your Sale

Here is the part many sellers miss. Your policy, Citizens or private, ends when you sell. The buyer needs their own.

A buyer with a mortgage cannot close without it. Latent Insurance Services explains that the lender requires a bound homeowners policy, with the lender named, before closing. Many carriers ask for a four-point inspection on older homes. It covers the roof, electrical, plumbing and heating and cooling. A wind mitigation report can lower the wind premium.

So the risk to your sale is not the takeout. It is a buyer who cannot get a policy at a price their loan can carry, often because of an older roof, old wiring or plumbing, or a high premium. When that shows up late, deals can fall apart in the last week. If you own in Lee County, our Fort Myers selling page covers local options.

Three Ways to Sell, and How Each One Handles Insurance

For a side by side look, see cash offer vs listing vs selling on terms. Here is how each option deals with insurance.

1. Cash, as is

We buy the house in its current condition with our own funds. No mortgage lender has to approve a buyer’s policy before closing, so an old roof or a high quote is less likely to stall the sale. We insure the house ourselves after we own it. You keep your policy until closing day.

Subject to qualification, property inspection, and transaction terms.

2. Creative terms: subject-to or seller financing

In a subject-to sale, the buyer takes the deed and makes the payments on your existing mortgage. Please read this part carefully. The loan stays in your name. The lender can call the loan due under the due-on-sale clause. Both sides should use a real estate attorney. Your mortgage still requires insurance, so the paperwork should say who buys the new policy.

With seller financing, you act as the bank and the buyer pays you over time. Your attorney should make sure the buyer must insure the house and list you on the policy.

Subject to qualification, property inspection, and transaction terms.

3. A 1% full-service listing

If the house is in good shape, a listing on the MLS through our licensed brokerage partner may bring the highest price. The fee is 1%, and any buyer agent pay is separate and negotiable. Learn more in our 1% listing guide. To help financed buyers get a quote fast, share your roof age and permit, wind mitigation report, and any four-point report up front.

Subject to qualification, property inspection, and transaction terms.

A Short Checklist Before You List or Accept an Offer

1. Read every Citizens and new carrier letter, and get your current declarations page. Note the renewal date, premium and hurricane deductible.
2. Find your roof age, permit and any roof inspection.
3. Gather any four-point and wind mitigation reports.
4. Keep your policy active until closing. Do not cancel early.
5. Ask a licensed insurance agent about your coverage and a real estate attorney about your contract.

How HOMKEYS Can Help

HOMKEYS LLC buys homes across Florida from our office in Brickell, Miami. We show you cash, terms and a 1% listing side by side, in writing, and every closing goes through a licensed Florida title company. We cannot quote a price before we see the home. Subject to qualification, property inspection, and transaction terms.

Frequently Asked Questions

Not legal or insurance advice. This guide is general information about Florida home sales and insurance. Rules change and every policy is different. Talk with a licensed Florida insurance agent and a Florida real estate attorney about your own case before you sign anything.

⌂ Equal Housing Opportunity. HOMKEYS LLC does not give legal, tax or insurance advice. Talk with a Florida real estate attorney or licensed insurance agent about your situation.