Received a "Depopulation" Letter from Citizens Insurance? Here’s What Tampa Bay Homeowners Need to Do.
If you are one of the thousands of homeowners in Hillsborough, Pinellas, or Pasco Counties insured by Citizens Property Insurance, you might have recently opened your mailbox to find a letter with a confusing subject line: "Offer of Assumption and Market Depopulation."
First: Don’t panic. Second: Do not throw this letter away.
It looks like junk mail, but it is actually one of the most important documents you will receive this year regarding your home’s financial safety. As a local independent broker right here in Tampa Bay, I’ve been fielding calls about these letters all year.
Here is the plain-English translation of what that letter means, why you got it, and the critical decision you need to make before the deadline.
What Does "Depopulation" Mean?
It sounds ominous, but "Depopulation" is just the industry term for moving policies out of Citizens and back into the private market.
Remember, Citizens was never designed to be a permanent solution for everyone. It is the "insurer of last resort,” the safety net for when no private company will touch a property. For a long time, the private market in Florida was so volatile that Citizens became the only option for many of us.
But here is the good news: The fact that you received this letter means the market is healing. A private insurance carrier has looked at your home, analyzed the risk, and decided, "We want this client."
The "20% Rule" You Need to Know
This is the tricky part where having a broker (like me) is essential. The letter likely outlines an offer from a private company to take over your policy. You have a choice to accept or decline, but there is a catch.
Under Florida law, if a private insurer offers you coverage that is within 20% of your current Citizens premium, you are required to accept that offer. You can no longer stay with Citizens because you are no longer considered "uninsurable" by the private market.
If the private offer is more than 20% higher than your Citizens rate, you can choose to decline it and stay with Citizens.
Is the Private Offer Better?
This is where many people get stuck. They look only at the price tag. But price is not the only factor.
While Citizens has been a lifesaver for Florida, its coverage is often more restrictive than private carriers. A private policy might offer:
Better Water Damage Coverage: Citizens often has strict caps on water damage (like burst pipes), which is the most common claim in Florida.
Higher Liability Limits: Crucial if you have a pool, a dog, or teenage drivers.
Bundle Discounts: Private carriers might let you bundle your auto insurance, potentially lowering your total household bills, even if the home premium is slightly higher.
The "Hidden" Risk of Staying with Citizens
There is one more reason you might want to take the private offer, even if it costs a few dollars more.
Citizens policyholders are subject to "assessments." If a massive hurricane hits Florida and Citizens runs out of money to pay claims, they have the authority to levy a surcharge (an extra tax) on all Citizens policyholders to cover the deficit. Private policies are generally less exposed to this direct surcharge risk.
What Should You Do Right Now?
You have a deadline to respond to that letter. If you ignore it, the state might automatically switch you to the new carrier or keep you with Citizens depending on the price difference, but you shouldn't leave it to chance.
Here is my advice:
Find the Letter: Locate the "Offer of Assumption" letter and look for the proposed premium amount.
Call Me: As an independent broker, I can compare the new offer against your current policy side-by-side. I’ll tell you if the coverage is actually better or if you are losing critical protections.
Reshop the Market: If you are being forced off Citizens, that one private offer in the letter isn't your only choice! I can shop your home with 40+ other carriers to see if we can beat that offer and your old Citizens rate.
Don’t let the state choose your insurance for you.
If you’re confused by the legalese or just want a second set of eyes on the numbers, click the button below or reply to this post. I’m reviewing these letters for Tampa Bay families every day, and I’m here to help you make the right move.