Citizens drops 150K policies in Tampa Bay as private insurers step in
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Citizens Property Insurance Corp. shed about 150,000 policies in Tampa Bay last year, according to data released last month.
Why it matters: It is no longer the state's largest insurer, with a market share of less than 10%, according to the Florida Office of Insurance Regulation.
- Experts had warned, when Citizens peaked at 1.4 million policies in 2023, that a major hurricane could wipe out its claims-paying funds and trigger a "hurricane tax" on all insured homes, cars and boats.
By the numbers: Tampa Bay had 85,248 policies with Citizens as of Dec. 31, the latest available data. That's down 64% from 234,652 a year ago.
- Hillsborough County led the drop with a 74% decline, falling from 42,607 policies to 11,060.
- Pinellas County came in second, with a 65% decrease; even with the drop, it still held the most Citizens policies in the region at 32,208.
Driving the news: The shrinking policy count coincided with Citizens lowering its average rates for personal lines policyholders for the first time since 2015.
- For most policyholders statewide, that means an 8.7% average premium decrease.
What they're saying: "Citizens is back in a position where it is truly a last resort insurer," says Mark Friedlander of the Insurance Information Institute. "Private insurers are now taking on most of the risk in Florida."
Between the lines: In 2022, Gov. Ron DeSantis signed legislation that bars homeowners from renewing their coverage with Citizens if they receive an offer from a private insurer no more than 20% more expensive.
- A private insurer can now offer you an insurance policy that is over 10% more than your current Citizens rate — and while you're not required to accept it, you can't renew your Citizens policy.
- Leaving Citizens can also expose policyholders to larger increases at renewal, as Citizens is subject to rate caps that private insurers are not.
Case in point: The Florida Office of Insurance Regulation allowed Slide Insurance to assume up to 455,900 policies from Citizens in 2025.
- The South Florida Sun-Sentinel reported that the Tampa-based insurer had already raised rates about 23% on an earlier batch of policies it assumed from Citizens when those came up for renewal in 2024.
Yes, but: Experts tell Axios that policyholders aren't stuck — they can shop around for a better rate, or go back to the state-run insurer if their renewal offer exceeds the Citizens premium by more than 20%.