What is Depopulation?
The Florida Legislature created the state’s depopulation program to reduce the number of property owners insured through Citizens Property Insurance Corporation, the state-sponsored insurer of last resort. Under the program, created by F.S. 627.351(6)(g)3.a, private insurance companies are encouraged to remove any policies currently covered by Citizens. In this way, Citizens can transfer policies back to the private insurance market. Reducing Citizens’ exposure benefits all Floridians because it improves the state’s insurance market, reduces the state’s potential exposure to catastrophic loss covered by Citizens, lowers assessments charged to all property insurance consumers, and creates business opportunities for other companies in Florida. Approximately one million policyholders have been returned to the private insurance market. Citizens’ exposure has been reduced by over $200 billion. The portion of losses absorbed by the private market following the recent hurricanes would otherwi
