Many luxury condo buyers can't use Citizens Property Insurance Corporation, Florida's state-created insurer of last resort, for their unit policy, and those who can may be pushed back into the private market. Under Florida law, a single condo unit is ineligible if its combined dwelling-and-contents replacement cost is $700,000 or more, or $1 million or more in counties where regulators have found too little competition (Citizens applies the $1 million cap in Miami-Dade and Monroe). Even below those caps, Citizens can't write the policy if a private insurer offers comparable coverage for no more than 20% above Citizens' premium. The cap is based on the replacement cost of what the unit-owner policy insures, not the sale price, so check with a licensed insurance agent before you go under contract. Condo unit-owner policies are exempt from Citizens' flood-insurance requirement. The building's own master policy follows separate rules, and a 2026 law tightened them for associations insured by Citizens.
At a glance
| Question | Short answer | Source |
|---|---|---|
| What is Citizens? | A state-created "government entity" that insures property owners who can't get coverage in the private market | Fla. Stat. § 627.351(6)(a)1. |
| Unit value cap | Ineligible at $700,000+ combined dwelling and contents replacement cost | § 627.351(6)(a)3.a. |
| Higher cap | Under $1 million in counties OIR finds non-competitive; Citizens applies it in Miami-Dade and Monroe | § 627.351(6)(a)3.b.; Citizens notices |
| The 20% rule | Ineligible if a private insurer offers comparable coverage at no more than 20% above Citizens' premium | § 627.351(6)(c)5.; Citizens Clearinghouse page |
| Second homes | The 20% rule applies at new business and at renewal (since July 1, 2024) | § 627.351(6)(c)5.b. |
| Flood mandate | Does not apply to policies on a condo unit-owner form | § 627.351(6)(aa)3.b. |
| Rate increases | Capped at 15% a year for primary residences in 2026; non-primary policies can rise up to 50% above the prior year's rate | § 627.351(6)(n)5.–8. |
| Deficit risk | Citizens can levy a policyholder surcharge of up to 15% of premium, then emergency assessments | § 627.351(6)(b)3. |
| 2026 change | New commercial clearinghouses (association policies) by Jan. 1, 2027; 15% surplus-lines test | SB 1028, ch. 2026-150 |
What Citizens is, and why it matters to condo buyers
Florida law created Citizens to provide insurance "for applicants who are entitled, but, in good faith, are unable to procure insurance through the voluntary market." The statute calls it "a government entity that is an integral part of the state, and that is not a private insurance company." Citizens covers both personal lines (including "condominium unit owner" policies, the HO-6 a buyer carries) and commercial lines residential policies, which include "condominium association" master policies.
For a buyer, that creates two separate questions: can my unit be insured by Citizens, and is the building insured by Citizens?
Can your unit get a Citizens policy?
1. The value cap. "A single condominium unit that has a combined dwelling and contents replacement cost of $700,000 or more is not eligible for coverage by the corporation." In counties where the Office of Insurance Regulation finds there is "not a reasonable degree of competition," the limit rises: a unit is eligible if that combined replacement cost is "less than $1 million." Citizens' notices to agents apply the $1 million limit in Miami-Dade and Monroe counties and the $700,000 limit everywhere else.
The test is replacement cost, the cost to rebuild and refurnish what the unit-owner policy covers, not the price you paid. A unit-owner policy generally covers what the association's policy doesn't, so the figure depends on the building's documents and your finishes. A licensed agent can tell you how it would be calculated for a specific unit.
2. The 20% rule. Citizens is meant to be the last stop. For a new policy on a primary residence, a unit "is not eligible for any policy issued by the corporation unless the premium for coverage from the authorized insurer is more than 20 percent greater than the premium for comparable coverage from the corporation." At renewal, the same 20% test has applied to primary residences since April 1, 2023, and to non-primary residences since July 1, 2024. For second homes, offers from approved surplus lines insurers in a take-out plan also count.
3. The Clearinghouse. Citizens says agents must check eligibility through its Clearinghouse (HO-6 is one of the policy types quoted there), and that "any offer not more than 20% greater than the Citizens renewal premium will result in a nonrenewal of the Citizens policy." Agents must re-shop Citizens business at every renewal. If a private offer comes in above the 20% line, you may choose either one.
4. Take-out offers. Through its Depopulation Program, Citizens matches policyholders with OIR-approved private insurers that want to assume their policies. State law protects your right to keep your current agent when you get a take-out offer (§ 627.3517). Review any offer's coverage and deductibles with your agent before the deadline.
5. New oceanfront buildings. State law separately bars Citizens coverage for certain "major structures" newly built, or expanded by more than 25%, under permits applied for after July 1, 2015, if they sit seaward of the coastal construction control line or in the Coastal Barrier Resources System (§ 627.351(6)(a)5.b.). Ask an agent whether that affects a new oceanfront tower you're considering.
Flood insurance
Citizens must require flood insurance on most personal residential policies; the requirement is phasing in by dwelling value and reaches all remaining policies on Jan. 1, 2027. But the statute exempts "policies that provide coverage under a condominium unit owners form." That exemption is about Citizens eligibility only. Your lender, your association documents or plain prudence may still call for flood coverage.
Rates and assessment risk
- Rate increases: for 2026 and later, Citizens' annual increase on a single policy is capped at 15%, excluding coverage changes and surcharges. Policies that don't cover a primary residence aren't subject to that cap, but may not be charged more than 50% above the prior year's established rate.
- Deficits: if Citizens projects a deficit, its board must levy a policyholder surcharge of up to 15% of premium on all Citizens policyholders. Any remaining deficit is covered by emergency assessments collected on most Florida property and casualty policies. Citizens tells policyholders that private-market customers "can be subject to paying a much lower assessment amount."
These are statutory limits, not forecasts. Ask an agent for an actual quote.
The building's master policy
The association insures the building under its master policy, and some associations buy that coverage from Citizens on a commercial residential policy. For associations, a new or renewal Citizens policy isn't available if an authorized insurer offers comparable coverage at no more than 20% above Citizens' premium (§ 627.351(6)(c)5.c.).
What changed in 2026: SB 1028 (ch. 2026-150), effective June 16, 2026, requires Citizens to launch two commercial clearinghouses by Jan. 1, 2027, one for authorized insurers and one for approved surplus lines insurers. A commercial residential risk becomes ineligible if a surplus lines clearinghouse insurer offers comparable coverage whose "total cost of insurance coverage," including fees, taxes, assessments and surcharges, is no more than 15% above Citizens' total cost. The Florida Department of Financial Services summarizes it this way: agents must submit commercial residential applications to the clearinghouses first, to see whether private coverage is available.
What it means for buyers: a building insured by Citizens today may be moved to a private or surplus lines carrier. Its premium, deductibles and terms could change, and the association's budget and reserves with them. Ask for the current master policy, the carrier and any notices from Citizens. See also Florida Condo Hurricane Deductibles and Florida Condo Special Assessments.
Buyer checklist
- Ask a licensed insurance agent, before you sign, whether your unit's dwelling-and-contents replacement cost falls under Citizens' cap for that county.
- Get private HO-6 quotes first. Citizens is only available if no private offer comes within 20%.
- Tell the agent whether the unit will be your primary residence; the rules and rate caps differ.
- Ask the association who insures the building, whether it's Citizens, and whether it has received any clearinghouse or take-out notices.
- Get the master policy declarations page and the hurricane deductible, and read how the declaration splits coverage between the association and unit owners (see How to Read a Florida Condo Prospectus).
- Decide on flood coverage separately, whatever Citizens requires.
- For a new oceanfront building, ask whether its location affects Citizens eligibility at all.
- Review recent condo-law changes with your attorney (see Florida Condo Law HB 913).
Featured agents: Haute Real Estate Network members in Miami include Reggie Bouzy, Founder & CEO of The Bouzy Group and Le Comble, whose work focuses on branded and hospitality-backed residences, and Iryna Velychko, a Broker Associate with the Ivan & Mike Team at Compass who specializes in pre-construction and new development in Bal Harbour, Sunny Isles Beach, Brickell and Edgewater. For insurance quotes and coverage advice, work with a licensed insurance agent. Browse Find a Realtor.
FAQ
Can a luxury condo in Florida be insured by Citizens?
Sometimes. A unit is ineligible if its combined dwelling-and-contents replacement cost is $700,000 or more, or $1 million or more in Miami-Dade and Monroe counties, and it can only be insured by Citizens if no private insurer offers comparable coverage within 20% of Citizens' premium.
Is the Citizens limit based on the condo's price?
No. The statute uses the replacement cost of the unit's insured dwelling and contents, not the purchase price. A licensed agent can explain how it's calculated for a specific unit.
What is the Citizens 20% rule?
If a private insurer offers comparable coverage at a premium no more than 20% higher than Citizens', the property isn't eligible for Citizens. It applies to new policies and, for both primary and non-primary residences, at renewal.
Does Citizens require flood insurance on a condo unit?
No. Florida law exempts policies written on a condominium unit-owner form from Citizens' flood-insurance requirement. Lenders or the association may still require it.
What changed for Citizens condo coverage in 2026?
SB 1028, effective June 16, 2026, requires new commercial clearinghouses by Jan. 1, 2027 for association and other commercial policies, and makes a commercial risk ineligible if a surplus lines insurer offers comparable coverage within 15% of Citizens' total cost. Unit-owner policies still follow the 20% rule.
Can a Citizens policyholder be assessed after a hurricane?
Yes. If Citizens projects a deficit, it must levy a surcharge of up to 15% of premium on its policyholders, and emergency assessments can follow on most Florida property and casualty policies.
Related - Florida Condo Hurricane Deductibles: Insurance Gaps - Florida Condo Special Assessments: What Buyers Must Ask - Florida Condo Law HB 913: What Buyers Should Know - How to Read a Florida Condo Prospectus - Insights
Sources
- Fla. Stat. § 627.351 (2026), esp. (6)(a)1.–3., (6)(a)5.b., (6)(b)3., (6)(c)5., (6)(n)5.–8., (6)(aa), (6)(oo) — https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0627/Sections/0627.351.html (checked Nov. 14, 2026)
- Fla. Stat. § 627.3518 (2026), Citizens policyholder eligibility clearinghouse program — https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0627/Sections/0627.3518.html (checked Nov. 14, 2026)
- Fla. Stat. § 627.3517, Policyholder protections — https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0627/Sections/0627.3517.html (checked Nov. 14, 2026)
- Florida Senate, CS/CS/SB 1028 (2026), Citizens Property Insurance Corporation (ch. 2026-150, effective June 16, 2026) — https://www.flsenate.gov/Session/Bill/2026/1028 (checked Nov. 14, 2026)
- Florida Department of Financial Services, Office of the Insurance Consumer Advocate, "Property Insurance Changes" (2026 session, SB 1028) — https://www.myfloridacfo.com/division/ica/propertyinsurancechanges/ (checked Nov. 14, 2026)
- Citizens Property Insurance Corporation, "Clearinghouse" — https://www.citizensfla.com/clearinghouse (checked Nov. 14, 2026)
- Citizens Property Insurance Corporation, "Depopulation" — https://www.citizensfla.com/depopulation (checked Nov. 14, 2026)
- Citizens Property Insurance Corporation, "Securing Coverage for Lighthouse Property Insurance Corporation Policyholders" (May 10, 2022; Miami-Dade/Monroe $1 million limit) — https://www.citizensfla.com/-/20220510-securing-coverage-for-lighthouse-property-insurance-corporation-policyholders (checked Nov. 14, 2026)
General information for Florida condo buyers. Not insurance, legal or tax advice. Eligibility and coverage depend on the specific unit and policy; confirm with a licensed insurance agent and your attorney.