Insurance Curator Here is the first problem with that question. There are two companies called Citizens, they have nothing to do with each other, and the honest answer changes completely depending on which one landed in your mailbox.
One is a state-created carrier in Florida that most homeowners end up with because nobody else would take them. The other is a regional carrier owned by The Hanover, sold through independent agents across the Midwest and Northeast. Same name. Very different experience. If you are still sorting out what kind of insurance is citizens insurance, start there before you compare quotes.
Two Companies, One Confusing Name
| Citizens Property Insurance Corporation | Citizens Insurance Company of America | |
|---|---|---|
| Where | Florida only | Michigan, Indiana, Ohio, Wisconsin, and other states |
| Owner | Created by the Florida Legislature, government-run | Subsidiary of The Hanover Insurance Group |
| Role | Insurer of last resort | Standard market carrier |
| How you buy it | Only if private carriers decline you or quote 20% higher | Through an independent agent |
| AM Best rating | Not rated by AM Best | A (Excellent), affirmed July 31, 2025 |
That second row matters more than people expect. Citizens insurance is owned by the state of Florida in the sense that the Legislature created it and it answers to a state-appointed board. The Hanover version is a private insurer with shareholders. And no, Citizens is not the same as Hanover insurance in name, though it is the same balance sheet behind the policy.
Florida Citizens: Smaller, Steadier, Still a Last Resort
Citizens Property Insurance has had a strange few years. In late 2023 it carried roughly 1.4 million policies, which made a state-run backstop the largest home insurer in Florida. That was never the plan.
Then the depopulation program kicked in, helped along by the 2022 litigation reforms. By December 19, 2025 the count was down to 396,387. By June 2026 it sat around 274,000, which is about 2% of Florida’s residential market. Back to being a backstop.
The financial picture is better than the reputation
Critics used to point at Citizens and say one bad hurricane would trigger assessments on every insurance consumer in the state. Going into the 2026 season, that argument got weaker.
- Surplus: $5.34 billion
- Reinsurance purchased for 2026: $276 million in premium, buying $2.82 billion in coverage
- Florida Hurricane Catastrophe Fund layer: $1.44 billion
- Total claims-paying ability: at least $9.6 billion
Citizens says that stack lets it pay claims from a 1-in-360-year storm without levying assessments. Worth knowing if the assessment risk is what has been putting you off.
Rates are actually moving down
For 2026 Citizens recommended a 2.6% statewide average decrease on personal lines. Three out of five policyholders were slated for an average reduction of 11.5%, or about $359, with rates taking effect June 1, 2026 after regulatory review.
A rate cut from Citizens is unusual. For years the story was the opposite, with double-digit increases as the corporation tried to reach actuarially sound pricing. If you have been tracking what a good price for homeowners insurance in Florida looks like, this shifts the benchmark a little.
Where it still falls short
Citizens is not trying to be a good insurance company in the way a private carrier is. It is trying to be the option of last resort, and the design shows.
- Coverage is thinner. Personal liability caps are lower than what private carriers offer. Water damage coverage is limited. Sinkhole and screened enclosure coverage comes with tight restrictions.
- Eligibility is conditional. If a private insurer offers you a policy within 20% of your Citizens premium, you have to take it. You do not get to stay out of preference.
- No AM Best rating. Some lenders and buyers care about that even if the surplus number looks healthy.
- Claims service gets mixed reviews. Complaint volume rose sharply after the 2022 and 2024 storm seasons, which is what you would expect from a carrier that grew to 1.4 million policies in three years.
If claims handling is your main worry, it is worth comparing against the broader field. Our breakdowns of which home insurance company denies the most claims and what insurance company has the most complaints put the numbers side by side.
Citizens Insurance Company of America: A Solid Middle-Tier Carrier
This one is easier to judge. AM Best affirmed an A (Excellent) financial strength rating with a stable outlook on July 31, 2025, citing balance sheet strength at the strongest assessment level. That rating covers Citizens Insurance Company of America along with the rest of The Hanover’s subsidiaries.
The trade-off with Hanover-family policies is fairly consistent. You get broad coverage, generous endorsements, and an independent agent who can actually advocate for you. You also tend to pay more than you would with a direct-to-consumer carrier. Reviewers have flagged the pricing for years.
Who it suits:
- Homeowners with above-average home values who want coverage depth over the cheapest premium
- People who prefer working with a local agent rather than an app
- Anyone bundling home, auto, and umbrella and wanting it handled in one place
Who should look elsewhere:
- Shoppers whose only priority is the lowest monthly number
- Anyone who wants to buy entirely online without an agent
So Which Answer Do You Need?
If you are in Florida and Citizens is your only offer: take it, then keep shopping. It is financially sound right now and cheaper than it has been. But the coverage gaps are real, and depopulation means private carriers are writing Florida risk again. Requote every renewal.
If an independent agent quoted you Citizens Insurance Company of America: it is a good policy from a well-rated insurer. Compare the premium against two or three others and check whether the extra cost buys coverage you will actually use.
Before you sign either one, run the basics. Confirm your dwelling limit clears the 80% rule in homeowners insurance, because underinsuring your rebuild cost will cut your payout after a partial loss. Read the declarations page and check what property insurance covers versus what got excluded. And if you are pricing a specific house, our figures on homeowners insurance on a $400,000 house in Florida give you a sanity check.
The Short Version
Neither Citizens is the best home insurer in the country. Florida Citizens is a functional safety net that got a lot healthier between 2023 and 2026, and it is a reasonable place to sit while you look for something better. The Hanover-owned Citizens is a legitimately good regional carrier that charges for the privilege.
The mistake is treating them as one company. If you are weighing carriers more broadly, see who is the most trusted home insurance company and which homeowners insurance has the highest customer satisfaction for the wider comparison.