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Inflation Factor Adjustments

Inflation factors for renewal policies are higher than previous years to address increasing costs in building materials and to ensure the dwelling is insured for full replacement cost. Inflation factors may increase as high as 25 percent.

Note: Inflation factors are updated on a quarterly basis.


This inflation adjustment will increase the policy’s Coverage A amount, which may increase premiums for renewals effective on or after January 1, 2022.


This change is not a rate change.

When an inflation factor is applied, the following statement will display on the Declarations page:

Your property coverage limits have been adjusted for inflation.


Citizens will nonrenew policies with an inflation factor resulting in a replacement cost that exceeds the applicable maximum Coverage A limit. As a result, affected policyholders will receive a Notice of Nonrenewal. The Notice of Nonrenewal states:

Your policy is ineligible for renewal. Due to the annual inflation-based adjustment to your dwelling's value, the coverage limit for the upcoming renewal term exceeds Citizens' maximum coverage limit(s) based on replacement cost as established by law.

As a reminder, dwellings with a replacement cost of $700,000 or more and single condominium units with a combined dwelling and contents replacement cost of $700,000* or more continue to be ineligible for coverage.

*Note: The maximum replacement cost limit of less than $1 million continues to apply to risks in Miami-Dade and Monroe counties; however, the revised rule and processes apply.

Agents should review the policy’s current coverage limit(s) to ensure adequate coverage exists. Agents can submit policy change and complete a new cost estimator or provide an alternate valuation document to amend the Coverage A amount.

Residential Component Technology (RCT) Express

Citizens’ RCT Express now reflects the updated cost of construction to align with inflation adjustments. Any RCT Express that is created or updated after October 1 will reflect the new cost information.


This includes new-business quotes and policy changes.

It is important to insure properties for the full replacement cost. This can prevent dwellings from being underinsured in the event of a loss.


Log in to the Agents site to access the following resources:

  • Rule 208: Coverage Limits – Minimum/Maximum in the Underwriting Guidelines. Select Personal > PR-M or PR-W, and then select the policy type on the left menu.
  • Coverage Reference Sheet: Select Training > Personal Job Aids, and look under Resources on the right.
  • Personal Lines Bulletin: Update to Maximum Coverage Limits
  • Select FAQs on the top menu and enter inflation in the Search field.

Legal Disclaimer

Citizens provides agent communications online for historical purposes only, and the communications have not been updated to include any changes that may have been made after publication. Agents can find the latest information by reviewing the applicable underwriting manuals, and by logging in and accessing our FAQs, which are available from the top of any page on our website.