Significant developments have emerged in Florida’s home and commercial property insurance sector, as legislators move to reduce reliance on the state-run Citizens Property Insurance programme. A new proposal aimed at shifting more condominium and commercial policies away from Citizens has been sent to Governor Ron DeSantis for approval. On Monday, the Florida House approved the measure by an overwhelming 88–19 vote, mandating Citizens to establish two new clearinghouses by 1 January 2027.
The proposed clearinghouses are designed to broaden market participation. One will allow licensed insurers to offer “takeout” coverage for commercial residential and non-residential policies, while the other will enable participation by approved surplus lines carriers. These surplus lines companies are not licensed in Florida but are deemed eligible to operate under the scheme.
Representative Mike Redondo of Miami, the bill’s sponsor, explained, “Removing policies from Citizens will strengthen Florida’s insurance system and provide business and commercial property owners with additional options. If they receive an offer from the surplus lines clearinghouse, they will not remain on Citizens policies, but accepting such an offer is entirely voluntary. Policyholders may choose to return to the open market if they wish.”
However, some lawmakers urged caution. Representative Allison Tant warned that “forcing customers out of Citizens is inappropriate, and surplus lines policies require enhanced oversight.” Representative Jose Alvarez, meanwhile, stressed the measure’s potential benefits: “It will preserve Citizens as the insurer of last resort while allowing the private sector to enter the market, fostering competition and more affordable coverage.”
Citizens has been using a clearinghouse process for over a decade to gradually reduce policy counts. As of October 2023, the programme managed 1.41 million policies, which had declined to 336,000 by last week.
The following table summarises the proposed 2026 insurance rate changes:
| Insurance Type | 2026 Rate Change | Notes |
|---|---|---|
| Homeowners Multi-Peril | -8.8% | Most common policy type |
| Wind-Only Homeowners | -5.5% | Covers only storm and wind-related damages |
Participation for surplus lines carriers requires at least five years of audited financial statements, a financial strength rating of ‘A minus’ or higher, and an A.M. Best Company rating of ‘A-VII’.
Insurance Commissioner Mike Yaworsky cautioned, “New premiums, coverage terms, or other policy provisions will not be disclosed until one day before policy renewal, presenting a challenge for current market policyholders.”
While the proposed clearinghouses and premium reductions represent short-term relief, experts warn that rates may rebound in the future. Nevertheless, these reforms mark a new chapter in Florida’s property insurance landscape, highlighting the importance of informed decision-making for homeowners and business owners alike.