Florida Citizens Policyholders Face Takeout Deadlines That Can Affect Their Mortgage Escrow

If you own a home in Florida and your insurance is with Citizens, check your mail. Citizens, the state's insurer of last resort, keeps moving policies to private insurers through a process called depopulation, or "takeout." Two rounds are closing over the next five weeks.
‍

Most coverage of these letters focuses on the choice itself. For anyone with a mortgage, the bigger risk comes after the choice, when your servicer has to catch up with a new insurer.
‍

What's happening and when
‍

Citizens publishes a 2026 takeout calendar with the dates for each round. Two rounds are open right now.
‍

The November round mailed offers on September 28. Policyholders have until November 5 to register a choice, and the private insurer assumes the policy on November 17.
‍

The December round mailed offers on October 28. The deadline to choose is December 4, and policies move on December 15.
‍

The Florida Office of Insurance Regulation (OIR) approves each company that makes takeout offers. Its take-out companies page lists two insurers approved for November and December assumptions this year.
‍

How the choice works
‍

Under rules Florida adopted in 2022, a Citizens policy isn't eligible to renew if a private insurer offers comparable coverage for a premium no more than 20% above the estimated Citizens renewal premium. Citizens explains the rule on its site.
‍

In practice, that leaves you with a few paths. If the offer falls within that 20% range, staying with Citizens may not be an option. If the offer is more than 20% higher, you can register online or through your agent to stay. If you don't register a choice by the deadline, Citizens assigns your policy to a takeout company.
‍

Read the offer closely before you decide. The premium shown is an estimate of what you'll pay at renewal, and deductibles, limits and hurricane coverage can differ from your Citizens policy. Coverage options vary by carrier.
‍

Where your mortgage comes in
‍

Your lender requires homeowners insurance for the life of the loan. If you pay through escrow, your servicer pays the premium from that account and needs your current insurer, policy number and the lender listed on the policy.
‍

When a takeout company assumes your policy, your insurer and policy number change. Don't assume that information reaches your servicer on its own. Until it does, your servicer may not know who to pay at renewal, or may think your coverage has ended.
‍

That's where force placed coverage becomes a risk. If a servicer can't confirm you have insurance, federal rules let it buy a policy on your behalf after sending you written notices, as outlined in the CFPB's force placed insurance rule. That coverage typically costs more and protects the lender, which we explain in what lender placed insurance is. If it happens, the CFPB recommends sending proof of your own coverage and asking the servicer to cancel the force placed policy.
‍

The premium matters too. A new insurer means a new renewal premium. Your servicer adjusts escrow at its next annual review, so a higher or lower premium can move your monthly payment even when your loan terms stay the same. Our guide on why your mortgage payment increased walks through that math.
‍

What to do this week
‍

If you got a letter for the November round, register your choice by November 5. Use the portal and registration code in your letter, or ask your agent to submit it for you.
‍

Once you know which insurer will carry your policy, call your mortgage servicer or check its online portal. Confirm it has the new insurer, the new policy number and the correct mortgagee clause. Ask the new insurer to send the declarations page to your servicer too. Our post on changing your policy after closing covers what your servicer needs and how a mid-year change can affect escrow.
‍

Watch your mail for anything from your servicer about insurance. A letter asking for proof of coverage is your early warning. Answer it quickly.
‍

If the takeout offer doesn't fit your home, you can still look at the wider market before your deadline. Re-shopping your home insurance walks through how to compare coverage, and how location affects home insurance costs explains why Florida pricing works the way it does.
‍

Where this goes next
‍

Citizens scheduled nine takeout rounds on its 2026 calendar, and the December round is the last one. Watch for its 2027 calendar if your policy is still with Citizens after December.
‍

For homeowners with a mortgage, the takeaway holds every round. Make the choice before the deadline, then make sure your servicer knows about it. If you have questions about how insurance fits into your mortgage, our FAQs cover the basics.
‍

Related from Covered News: our breakdowns of rising insurance nonrenewals and the new housing executive order.

‍