Citizens Takeout Offer in Davie, FL: Should You Accept?

Should You Accept a Citizens Takeout Offer in Davie, FL?

A letter from Citizens Property Insurance shows up, it says another company wants to take over your policy, and it reads like a sales pitch you can ignore. It is not. A Citizens takeout offer is a decision with a deadline, and often the decision turns on a single number. Here is what the letter means for a Davie homeowner and how I walk owners through it.

Owners across Davie ask me about this letter, because Citizens has been shedding hundreds of thousands of policies back to the private market. The program is called depopulation. If you hold a Citizens policy on a Davie home, you may receive a takeout offer at renewal, and the deadline on that letter matters.

What a Citizens Takeout Offer Actually Is

Citizens is the state backed insurer of last resort. It was built as a backstop, not a first choice, and the state runs a depopulation program to move policies back to private companies when those companies are willing to take them. When a private insurer picks your policy, Citizens sends you a takeout or assumption offer. The company doing the taking has been reviewed and approved by the state, per the Florida Office of Insurance Regulation.

The private insurer is not doing this blindly. Each carrier picks policies by its own underwriting rules, which often weigh roof age, construction and claims. That is worth remembering, because the offer is a signal that at least one private carrier is willing to write your home.

Citizens frames the program as matching you with approved private companies whose coverage may be more comprehensive than Citizens, per Citizens. The offer letter includes a worksheet that lays your renewing Citizens premium next to each private offer, so you can see them side by side.

The Twenty Percent Rule That Decides Whether You Can Stay

Here is the number that controls almost everything. If any private takeout offer comes in no more than twenty percent above your Citizens estimated renewal premium for comparable coverage, you lose the right to keep the Citizens policy and must move to one of the private offers. You can only elect to stay with Citizens when every offer you receive runs more than twenty percent higher than your Citizens renewal. Confirm the exact comparison on your own Offer Form and with Citizens, because the wording on the rule has shifted over time and the figures printed on your letter are the ones that count.

Read that twice, because it surprises people. The private offer does not have to be cheaper than Citizens to pull you off Citizens. It only has to be close. An offer that is slightly more expensive than your Citizens renewal can still be enough to end your eligibility.

A few things follow from that rule, and they are the parts owners miss:

1. You must register your choice by the deadline on your Offer Form if you want any chance of remaining with Citizens. Staying is not the default.

2. You register your choice through your agent or through the Citizens online selection page using the policy number and the code on your letter.

3. If you do nothing, Citizens assigns your policy to the private company that offered the lowest estimated premium, and the move happens on the date in the letter.

4. There is no longer a window to jump back to Citizens after the transfer takes effect, so treat the deadline as final.

The deadline is the date printed on your Offer Form. Do not rely on a number you read online. Open the letter and find the date.

How to Decide When You Have a Real Choice

If any offer lands at or below twenty percent above your Citizens renewal, you do not have the option to stay. When you do have a choice, or when you are weighing which private offer to accept, price is the easy part and coverage is the part that bites later.

Here is what I tell every owner to compare before they sign off on anything:

• Dwelling coverage and replacement cost. Make sure the private policy rebuilds your home at today’s cost, not a stripped down number. You can sanity check your home’s size and features against the record at the Broward County Property Appraiser.
• The roof settlement. Some private policies pay the roof at actual cash value rather than full replacement once it reaches a certain age. That single clause can cost you far more than the premium difference after a storm.
• The hurricane deductible. Your hurricane deductible is likely a percentage of your dwelling coverage, not a flat dollar figure, and private carriers can set it differently than Citizens. Know the real out of pocket number before the next named storm, not after.
• Assessments. Citizens policyholders can be hit with assessments after a severe hurricane season if Citizens runs short on claims money, and private market policyholders can be subject to a much lower assessment, per Citizens. Leaving Citizens can actually reduce that risk.
• Financial strength and service. Ask your agent about the private company’s rating and claims reputation. A lower premium from a shaky carrier is not a deal.

One more point that trips up Davie owners. None of this touches flood. Citizens does not sell flood coverage, and neither does a standard takeout policy, so your separate flood policy stays in place through the switch. I cover that in the guide on whether Citizens requires flood insurance in Davie, and if you are buying a home with an existing policy, you can sometimes assume the seller’s flood insurance policy to hold a better rate.

If you are unsure or the offers do not add up, you can bring a question to the Florida Division of Consumer Services through the Florida Chief Financial Officer before your deadline. Inland Davie homes already tend to price better than coastal Broward, which is the same pattern I break down in Davie home insurance inland versus coastal, and your exact premium still turns on your roof, your ZIP, and your claim history, which is why two Davie homes on the same street can quote very differently. The Davie insurance by ZIP code guide shows how much location alone moves the number.

Insurance is a major line in the real cost of owning a Davie home, right alongside taxes, and it belongs in your math before you buy, not after. I keep that full picture in the Davie cost of living guide so buyers see the whole carrying cost. A takeout offer is Florida trying to put your policy back where it is supposed to live. When the coverage holds up, taking it is often the right move. The job is to make sure the coverage behind the lower number actually protects the house.

Frequently Asked Questions

Do I have to accept a Citizens takeout offer in Davie?

If any private offer is no more than twenty percent above your Citizens renewal premium, yes. That offer ends your eligibility to stay with Citizens and you must move to one of the private offers. You can only remain when every offer is more than twenty percent higher, and you must actively say so by the deadline. Confirm the figures on your own Offer Form with Citizens.

What happens if I ignore the Citizens takeout letter?

If you do nothing by the deadline, Citizens assigns your policy to the private company that offered the lowest estimated premium, and the transfer takes effect on the date in your letter. There is no longer a window to return to Citizens after that date, so a missed deadline is a decision you cannot undo.

Is the private takeout policy always cheaper than Citizens?

No. The offer does not have to be cheaper to be mandatory, it only has to come in no more than twenty percent above your Citizens renewal. Private coverage may be more comprehensive, per Citizens, but an offer can also cost slightly more. Read the worksheet in your letter and compare the coverage, not only the price.

Does a Citizens takeout change my flood insurance?

No. Citizens does not provide flood coverage, and a standard takeout policy does not either, so your separate flood policy continues unchanged. Keep paying it and confirm it stays active through the switch, since your mortgage lender will still require it in a FEMA Special Flood Hazard Area (an A or AE zone).

Can my mortgage escrow handle the switch automatically?

Your lender needs the new policy information to pay the premium from escrow, so tell your loan servicer as soon as you accept or are assigned to a private carrier. Send the new declarations page and confirm the servicer has stopped paying the old Citizens policy, or you can end up double billed or with a lapse.

Talk to a Davie Real Estate Expert

Anthony Spitaleri, Broker Associate and REALTOR® with Coldwell Banker Realty and raised in Davie, reads the real carrying cost of a home before anyone makes an offer, and insurance is a major line on that sheet. For every buyer and seller, Anthony maps the true cost of owning a specific Davie home, including the insurance picture, before the closing surprises. If you want to understand your takeout offer or build the full cost on a home you are considering, the next step is a direct conversation. Schedule a free 15-minute strategy call and walk into your decision with every number known.

Anthony Spitaleri

Broker Associate, REALTOR® | Coldwell Banker Realty

Creator of Living in Davie, Florida

Davie, Florida | Serving Davie, Weston and surrounding Broward markets

954-235-5783

Florida License BK3281907

@livingindavieflorida

Written by Anthony Spitaleri, Broker Associate, REALTOR® with Coldwell Banker Realty, working the single family market in Weston and Davie. More about Anthony