Glossary

Depopulation

A state program that moves policies out of a state-backed insurer and into private companies, shrinking the plan's exposure to the next catastrophe.

Also called: Citizens depopulation, depopulation program, policy takeout program, policy assumption

Depopulation is the process of shrinking a state-run insurer by transferring its policies to private companies. A plan like Florida's Citizens is meant to be a last resort, and when its policy count balloons, its exposure to a hurricane and the assessment risk that comes with it grow too. Depopulation is the tool lawmakers and regulators use to move business back to the private market.

In Florida, an eligible private insurer applies to the state's Office of Insurance Regulation for approval to take a block of Citizens policies. The state reviews the company's finances and the size of the block. Citizens then mails each affected policyholder an offer, and the private insurer issues the new policy once the transfer, called an assumption, takes effect. The policy you are offered is called a takeout policy.

What matters to you is the offer letter. Florida has tied the right to stay with Citizens to how the private offer compares in price with your Citizens renewal premium, and doing nothing can move the policy. Compare the coverages, deductibles and roof terms, not just the premium, and check the company's rating before you accept. Rules and deadlines differ by state, so use the dates on your own letter. The depopulation guide walks through the choices.

Last reviewed October 10, 2026

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Related terms

Takeout policy The private-market policy offered to a state-backed insurer's customer when a company takes over a block of that plan's policies. Residual market The state-created plans and pools that cover property owners the private market declines, as opposed to coverage insurers sell by choice. Insurer of last resort A state-created or state-sponsored insurer that sells coverage to property owners who cannot get a policy from a private company. FAIR plan A state pool, funded by the insurers doing business there, that sells basic property coverage to owners who cannot find it in the regular market. Assessment An extra charge raised after a state-backed insurer or guaranty fund runs short of money, collected from insurers and sometimes passed on to policyholders. Admitted insurer A company licensed by a state to sell insurance there, with its rates and forms under regulator review and its claims backed by the state guaranty fund.

Related guides

California's Sustainable Insurance Strategy What the Sustainable Insurance Strategy changes in California: wildfire models, reinsurance costs in rates, the 85% writing commitment and what you can expect. Depopulation and takeout offers from state insurers of last resort How Citizens-style plans move policies to private insurers, what a takeout letter means, the Florida 20% rule, and how to decide whether to accept or opt out. Citizens Property Insurance in Florida: who qualifies and what to know How Florida's Citizens works: the 20% eligibility rule, what it covers, take-out offers, flood and assessment rules, and how to move to a private insurer. FAIR plans explained: the insurer of last resort for homes How FAIR plans and coastal wind pools work, who qualifies, what they cover and leave out, how they are funded, and what to ask before relying on one. Florida's domestic home insurers: who they are Who Florida's home-grown insurers are, how Citizens takeouts and reinsurance shaped them, the 2021-2023 failures, and how to judge the one on your policy. Florida's home insurance market: what happened and what changed How Florida's home insurance market broke between 2019 and 2023, what the reforms did, and where prices, Citizens and new insurers stand as of October 2026.

Related insurers

American Integrity Insurance Tampa homeowners insurer founded in 2006 and public on the NYSE since 2025; sold by independent agents in Florida, Georgia and the Carolinas. Citizens Property Insurance Corporation (Florida) Florida's not-for-profit, government-created insurer of last resort; takeouts cut it from 1.41 million policies in 2023 to about 255,000 in October 2026. Loggerhead Reciprocal Interinsurance Exchange Tampa-based Florida reciprocal launched in 2022 by former AAA executives; it grew mainly by offering replacement policies to Progressive and Bankers customers. Louisiana Citizens Property Insurance Corporation Louisiana's nonprofit insurer of last resort, created in 2003 to run the state's FAIR and Coastal plans, with rates set by law above the private market's. SafePoint Insurance Tampa-area coastal home insurer founded in 2013 and sold through independent agents; 7th-largest in Louisiana, writing Florida via its Manatee reciprocal. Texas FAIR Plan and Texas Windstorm Insurance Association Texas' insurers of last resort: the FAIR Plan sells basic homeowners coverage statewide, and TWIA sells wind and hail coverage on the coast.

Related states

Louisiana Louisiana home insurance: the highest average premium in the U.S., Louisiana Citizens as last resort, named-storm deductibles and 2024-2026 claim reforms.