Citizens allocates approximately 73 percent of every premium dollar to pay claims, with approximately 17 percent reserved for paying hurricane claims. A particularly devastating storm or series of smaller storms could exhaust these reserves, leaving Citizens without enough money to pay all claims. If this happens, Florida law requires that Citizens charge assessments until any deficits are eliminated.
Assessments are charges that Citizens and non-Citizens policyholders can be required to pay, in addition to their regular policy premiums. Assessments are charged in three tiers, beginning with the Citizens Policyholder Surcharge. Each additional tier is charged only if the level before is insufficient to eliminate Citizens' deficit.
1. Citizens Policyholder Surcharge
- One-time assessment
- Citizens policyholders only
- Up to 45 percent of premium
2. Regular Assessment
- One-time assessment
- Private-market policyholders, including, but not limited to homeowners, auto, and specialty and surplus lines policies
- Up to 2 percent of the remaining shortfall
3. Emergency Assessment
- Single- or multiyear assessment
- Citizens and private-market policyholders
- Up to 30 percent of premium per year until any remaining deficit is eliminated
* $2,000 annual premium
The True Cost of a Citizens Policy
Because Citizens policyholders are the first and most highly assessed group, the true cost of a Citizens policy can increase dramatically following a major disaster:
- Reinsurance Makes Pocket $ense
- Citizens’ Assessments and the Next Hurricane (En español)
- Where does your premium dollar go?
- How assessments affect the true cost of insurance? (En español)
Cost is an important part of your insurance decisions. See how assessments can affect the true cost of your policy following a catastrophic storm or series of storms.
Citizens policyholders can be assessed up to 45 percent of their total premium if Citizens needs additional funds to pay claims following a major disaster. Non-Citizens policyholders can be assessed at a much lower (2 percent) rate.*
|Citizens Premium||Non-Citizens Premium|
|Total Annual Premium|
|Potential Assessment %||45%||2%|
|True Cost of Coverage||--||--|
*Does not include Citizens Emergency Assessments, which can be levied over multiple years at the same rate for both Citizens and non-Citizens policyholders, or additional mandated charges and assessments, such as the Florida Hurricane Catastrophe Fund (FHCF) and the Florida Insurance Guaranty Association (FIGA).