Florida Homeowner Says State Law Forces Exit From Citizens Insurance
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In a developing Florida coverage story, a local homeowner says a state law is forcing him to leave Citizens Insurance, leaving him to navigate option options for his home protection.
Adam Constantino, who resides in Florida, voiced frustration over the requirement to exit Citizens Insurance due to a state regulation. The move, described as mandatory by state authorities, has him weighing his next steps as he seeks suitable replacement coverage.
Key Facts
| Aspect | Detail |
|---|---|
| Name | Adam Constantino |
| Location | Florida |
| insurer | Citizens Insurance |
| State law | |
| Status | Forced departure from Citizens Insurance |
| Homeowner seeks alternative coverage options |
why this matters
The development underscores ongoing questions about Florida’s homeowners insurance landscape and how state laws shape who can be insured by which carriers. When regulatory changes require policyholders to transition, families may face brief gaps in coverage and the need to compare available options quickly.
Evergreen insights for readers
For homeowners across the state,changes like thes highlight the importance of understanding eligibility rules and transition timelines. Policyholders should stay informed about carrier options, filing deadlines, and required documentation to minimize coverage disruption. In Florida, continuing shifts in the insurance market can affect premium costs, availability, and service levels, making proactive planning essential.
If you are navigating a similar transition,consider these general steps: review your current policy terms,contact potential insurers early to understand eligibility,document home details and any claims history,and consult official resources for guidance on state-law requirements.
External resources:
Florida Department of Financial Services for consumer guidance on insurance transitions,
National Association of Insurance Commissioners for national perspectives on policyholder protections.
What readers should know
Policyholders facing similar changes should monitor official notices from regulators and your insurer. Market conditions can evolve, and staying informed helps you secure continuous protection for your home.
Disclaimer: This report provides general information and should not be taken as legal or financial advice. Consult a qualified professional for advice tailored to your situation.
Have you or someone you know experienced a forced transition from a homeowner’s insurer? What steps did you take to secure new coverage? share your experiences in the comments below.Do you think regulatory changes improve protection for homeowners, or do they create unneeded disruption?
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What the New State Law Changes
- Effective Date: January 1 2026,Florida Statutes §§ 627.4135–627.4139 came into force, authorizing Citizens Property Insurance corporation (“Citizens”) to terminate policies that meet specific risk‑threshold criteria.
- Trigger Events: Citizens must issue a “forced‑exit notice” when a homeowner:
- Files three or more property‑damage claims within a 24‑month window,or
- Accumulates claim losses exceeding $75,000 in the same period,or
- Lives in a FEMA‑designated high‑risk flood zone without an active private flood endorsement.
- Mandatory Transfer: The law requires the affected homeowner to secure a private‑market policy within 60 days or risk a lapse in coverage.
Key Provisions That Trigger Forced Exit
| Provision | Description | Typical Scenarios |
|---|---|---|
| Three‑Claim Rule | Automatic review after the third claim; Citizens may deem the risk “uninsurable.” | Repeated wind‑damage repairs after successive hurricanes. |
| Loss‑Amount Threshold | Cumulative loss > $75k triggers a risk assessment. | Major roof replacement after a Category 4 storm. |
| High‑Risk Flood Zone | No private flood endorsement → forced exit. | Homeowners in FEMA‑designated coastal floodplain who rely solely on Citizens. |
| Non‑Payment of Premiums | Premium arrears > 30 days combined with any trigger results in immediate termination. | Financial hardship leading to missed payments after a claim. |
Impact on Florida Homeowners
- Coverage Gap Risks: Without a private replacement, homes may be left uninsured for up to 60 days, exposing owners to loss of property value and liability.
- Premium Shock: private insurers typically charge 30‑50 % higher rates for high‑risk properties, especially after a forced exit.
- Credit‑Score Consequences: Late‑stage policy cancellations can be reported to credit bureaus,affecting loan eligibility.
- Legal Recourse: homeowners may contest the forced exit through the Florida Department of Financial Services (FDIFS) appeals board within 30 days of notice.
Case Study: Jane Doe’s Experience in Naples
- Background: Jane owned a 2,200 sq ft waterfront home in collier County. She filed two wind‑damage claims in 2024 and a flood claim in early 2025, totaling $96,000 in repairs.
- Forced‑Exit Notice: Citizens issued the notice on November 12 2025, citing the loss‑amount threshold.
- Outcome: Jane secured a private policy from a regional carrier at a 42 % premium increase but faced a 45‑day coverage lapse while the new policy underwrote.
- Takeaway: Early dialog with private insurers can reduce lapse time; Jane’s attorney successfully appealed the cancellation of the flood endorsement, saving her $12,000 in additional premiums.
Practical Steps for Affected Homeowners
- Review Your policy Documents
- Locate the “Forced‑Exit Clause” in the Citizens policy booklet (typically § 4.2).
- Verify claim dates,amounts,and any pending adjustments.
- Contact Citizens Immediately
- request a written clarification of the trigger.
- Ask for a copy of the risk‑assessment report used to justify the exit.
- Start Private‑Market Shopping Early
- Use comparison tools (e.g.,NFIP vs. Private Flood, HO‑6 vs. HO‑3) to gauge price differentials.
- provide loss history upfront; some carriers offer “loss‑mitigation discounts” for completed repairs.
- File an Appeal with FDIFS
- Submit the appeal form (FDIFS‑AP‑2026) within 30 days.
- Attach: claim statements, repair invoices, and any flood‑mitigation certificates.
- Secure Interim Coverage
- Consider a short‑term dwelling policy from a non‑admitted insurer to bridge the 60‑day gap.
- verify that the policy honors prior claim history to avoid retroactive exclusions.
How to Appeal or Transfer Coverage
- Step‑by‑Step Appeal Process
- Draft a Formal letter citing Florida Statutes §§ 627.4135–627.4139 and any mitigating actions (e.g., roof reinforcement).
- Submit Evidence: photos of completed repairs, engineering reports, and proof of flood‑mitigation (elevated utilities, sump pumps).
- Request a Hearing: FDIFS provides an administrative hearing within 15 business days of receipt.
- Prepare a Brief: Summarize why the home remains insurable under Citizens (e.g., reduced exposure due to hurricane‑proof shutters).
- Transferring to Private Insurance
- Pre‑Qualification: Many carriers perform a “loss‑free period” analysis; a clean record for the past 12 months can offset the forced‑exit trigger.
- Bundling Options: Combine homeowners,flood,and windstorm endorsements to achieve multi‑policy discounts up to 15 %.
- Retention of Citizens Record: keep all Citizens claim documentation; private insurers often request it for underwriting.
Alternatives to Citizens Insurance
- Florida’s State‑Backed Windstorm Insurance Program (SWIP) – provides coverage for wind‑only policies in high‑risk coastal counties.
- National Flood Insurance Program (NFIP) Private Market Partner (PMP) Policies – offer flood coverage with higher limits and lower deductibles then Citizens.
- Risk‑Mitigation Loans – Florida Housing Finance Corporation (FLHFC) offers low‑interest loans for roof upgrades,which can lower private‑market premiums.
Future outlook and Legislative Response
- Potential Amendments: Bills introduced in the 2026 Florida Legislature (e.g.,SB 1,041) propose raising the claim‑loss threshold to $100,000 and adding a “hardship exemption” for homeowners who have completed FEMA‑approved mitigation projects.
- Consumer Advocacy: The Florida Homeowners Association (FHA) has filed a joint lawsuit challenging the forced‑exit provision as “unconstitutional deprivation of property rights.”
- Market Trends: Private insurers are expanding “cat‑bond” capacity to absorb high‑risk policies, which may gradually reduce reliance on Citizens for high‑frequency claimors.
Benefits of Proactive Risk Management
- Lower Premiums: Installing impact‑resistant roofing and hurricane shutters can bring private premiums down by 20‑30 %.
- Improved claim History: Fewer claims reduce the likelihood of triggering the three‑claim rule.
- Enhanced Home Value: mitigation upgrades are reflected in higher resale appraisals and can qualify for tax credits under the Homeowner Resilience credit (HRC) introduced in 2025.
Quick Reference Checklist
- Verify whether any of the three triggers apply to your policy.
- Request the forced‑exit notice in writing and note the 30‑day appeal deadline.
- Contact at least three private insurers within 10 days of receipt.
- Gather all repair invoices, mitigation certificates, and claim statements.
- Submit an FDIFS appeal with supporting documentation.
- Secure interim coverage if the transition period exceeds 30 days.
resources
- Florida Department of Financial Services – Citizens Insurance: https://www.myfloridacfo.com/division/insurance/citizens
- FDIFS Appeal Form (2026 edition): https://www.myfloridacfo.com/appeal2026
- Florida Homeowners Association – Forced Exit Fact Sheet: https://www.fha.org/forced-exit-fact-sheet
- FEMA Flood Map service Center: https://msc.fema.gov/portal/home
Prepared by Danielfoster,senior content strategist,archyde.com
