Citizens Property Insurance Corporation has shrunk from roughly 1.4 million policies at its 2023 peak to about 392,000 by early 2026, as Florida's depopulation program forces a growing share of policyholders — including landlords with commercial and personal lines coverage — onto private carriers. If you're a DSCR investor with a Citizens policy coming up for renewal, this transfer is not optional in many cases, and it's worth understanding the mechanism before your renewal notice arrives.
What the depopulation program actually does
Per Citizens Property Insurance Corporation's official depopulation page, the Depopulation, or Takeout, Program matches Citizens policyholders — both personal and commercial lines — with private, Florida Office of Insurance Regulation-approved carriers offering to assume their policy. Citizens explains that policyholders who move to a private carrier reduce their exposure to potential hurricane-related assessments, since Citizens policyholders can face large assessments after a major storm season while private-market policyholders generally face significantly lower exposure. Citizens' Clearinghouse tool lets policyholders and agents compare available private offers before a transfer occurs.
Why this isn't just a policy-count statistic
Per Atesa Risk Advisors' analysis, the mechanism forcing this shift is Florida's "20% rule": if a private carrier's offer comes in within 20% of what Citizens would charge at renewal, state law requires the policyholder to leave Citizens for that private carrier. That rule — not just market conditions — is why Citizens has shrunk from its 1.4 million-policy peak in 2023 to roughly 392,000 policies by early 2026. In 2025 alone, more than 585,000 policies transferred from Citizens to private insurers, removing an estimated $235.6 billion in exposure from the state-backed insurer. Citizens operates under the authority of Florida Statute §627.351, which established it as the state's insurer of last resort and governs how depopulation operates.
Getting a depopulation offer on a rental property?
Send Joe your current Citizens declarations page and any private-carrier takeout offer, and we'll run both through your DSCR math before your renewal date arrives. No tax returns required to qualify.
Schedule a Call With Joe Call Joe: (941) 260-3051Why DSCR landlords specifically need to prep for this
A DSCR loan qualifies your property on rental income relative to its total debt obligation — principal, interest, taxes, insurance, and association dues (PITIA) — not your personal income or tax returns. Insurance is one of the most consequential and most variable line items inside that PITIA calculation for Florida investment property. Assuming a landlord is transferred from a Citizens policy to a private carrier at a premium within the 20% threshold: the resulting PITIA change, whether it moves up or down, directly affects the debt-service coverage ratio math on that property — which matters at renewal, at refinance, and at the time of any future purchase.
| What's happening | What it means for your DSCR numbers |
|---|---|
| Citizens shrank from ~1.4M policies (2023) to ~392,000 (early 2026) | A large share of Florida landlords have already been transferred, or will be, at their next renewal. |
| 20% rule forces mandatory transfer if a private offer is within range | You may not have a choice to stay with Citizens once a qualifying offer exists — plan your budget around that possibility. |
| 585,000+ policies transferred in 2025 alone; $235.6B in exposure moved | This is an accelerating, not slowing, trend — expect more landlords to receive takeout offers through 2026. |
| Clearinghouse tool compares available private offers | You or your agent can review offer details before a transfer takes effect, rather than being surprised at renewal. |
What to do before your renewal notice arrives
Ask your insurance agent directly whether your property has already received or is likely to receive a depopulation offer, and request the specific private carrier's quote in writing as soon as it's available — don't wait for the automatic transfer notice. Compare that quote against your current Citizens premium and, if you're near a refinance or planning a new DSCR purchase, loop in your loan officer before the transfer takes effect so the new premium can be factored into your DSCR calculation up front rather than discovered after closing. For a broader look at how the state's evolving insurance market intersects with investor cash flow, see our recent post on Florida's insurance rate cuts and DSCR cash flow.
Condos, multi-family, and short-term rentals face this differently
For condo and multi-family DSCR properties, the depopulation transfer often happens at the master-policy level through the association rather than an individual landlord's own action, meaning you may have less direct control over timing and carrier selection than a single-family investor does. If your association's master policy transfers, ask for the updated premium as soon as it's set and confirm how it flows through your HOA dues — since that change affects your PITIA even though you didn't independently shop for it. Our guide on Florida vacation rental licensing for DSCR investors covers other compliance-adjacent issues worth tracking alongside insurance for short-term rental owners.
What this doesn't mean
A depopulation transfer doesn't mean your coverage disappears or that private coverage is automatically worse — OIR approval is required for any carrier participating in the Takeout Program, and many participating carriers are well-capitalized. It also doesn't change your DSCR loan's underlying qualification standards; it changes one input — insurance cost — that feeds into your debt-service coverage ratio math. The point is to know the change is coming and plan your renewal budget accordingly, rather than being surprised by a new premium mid-cycle.
Frequently Asked Questions
What is Florida's Citizens depopulation program?
It's a program matching Citizens Property Insurance policyholders with OIR-approved private carriers willing to assume their coverage, reducing Citizens' policy count and the associated hurricane-assessment exposure for remaining policyholders, per Citizens' official depopulation page.
Can I refuse a depopulation offer and stay with Citizens?
Under Florida's 20% rule, if a private carrier's offer is within 20% of your Citizens renewal premium, state law requires the transfer — you generally cannot opt to remain with Citizens in that scenario.
How does a depopulation transfer affect my DSCR ratio?
Insurance is part of your PITIA, the debt-obligation side of your debt-service coverage ratio calculation. A change in premium from a depopulation transfer — higher or lower — changes that ratio on the same rental income.
How many Citizens policies have transferred to private carriers?
Citizens shrank from roughly 1.4 million policies at its 2023 peak to about 392,000 by early 2026, with more than 585,000 policies transferring in 2025 alone, per Atesa Risk Advisors' analysis of the program.
Have a Citizens policy on a Florida rental property coming up for renewal? Take the quick eligibility check on our homepage or call Joe Pistone & Team — we'll factor your actual insurance quote into your DSCR math, and for today's pricing, just ask Joe.
Sources: Citizens Property Insurance Corporation, Depopulation Program; Atesa Risk Advisors, "Citizens Property Insurance Depopulation" (June 1, 2026); Florida Statute §627.351, Citizens Property Insurance Corporation.