Glossary

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.

Also called: takeout offer, takeout company policy, assumed policy, depopulation offer

A takeout policy is the policy a private "takeout" insurer offers you when it has been approved to take over part of a state plan's book as part of depopulation. You receive a letter with a quote, a coverage summary and a deadline. If you accept, or in some programs simply do not respond, the private company assumes the policy on a set date.

The new policy is not a copy of the old one. Say your plan policy has a $400,000 dwelling limit, a 2% hurricane deductible and a $6,000 premium. The offer may show a lower premium but an actual cash value roof schedule, a different personal property limit or a higher wind deductible. Put the two declarations pages side by side and compare limits, deductibles, roof terms and exclusions before you decide.

Check the company's financial strength rating, whether it has a record of paying claims promptly in your area, and that your mortgage servicer is listed correctly. If your lender collects premiums through escrow, tell the servicer when the change occurs. Whether you can decline and stay with the plan depends on the state's rules and your price comparison, and deadlines are firm.

The takeout offer guide explains the options, and how to read a homeowners insurance quote helps with the comparison.

Last reviewed October 10, 2026

In the index now

Related terms

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. Residual market The state-created plans and pools that cover property owners the private market declines, as opposed to coverage insurers sell by choice. Declarations page The summary page at the front of a policy listing the insured, the property, policy dates, limits, deductibles, premium, mortgage lender and attached forms. ACV roof endorsement An endorsement that pays wind and hail roof damage at replacement cost less depreciation, even when the rest of the home is settled at full replacement cost. Hurricane deductible A separate amount you pay first, usually a percentage of the dwelling limit, that applies to wind damage from a hurricane in place of your regular flat amount. 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.

Related guides

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. Demotech ratings and Florida's insurers Why most Florida home insurers carry Demotech ratings, what an A (Exceptional) means, how lenders treat it, the 2022 downgrades and the criticism. 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. Louisiana Citizens Property Insurance explained How Louisiana Citizens covers homes private insurers decline, why it costs more by design, who pays a deficit, and how to move back to a private policy.

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. Florida Peninsula Insurance Boca Raton group (Florida Peninsula and Edison) that sells only in Florida through independent agents; the state's No. 2 home insurer in 2025, after Citizens. Heritage Insurance Tampa-based public insurer that grew out of Citizens takeouts and now writes homes in 16 states through Heritage P&C, Narragansett Bay and Hawaii's Zephyr. Homeowners Choice and TypTap (HCI Group) HCI Group's Florida-focused home insurers, Homeowners Choice, TypTap and the Tailrow reciprocal, built largely on Citizens takeouts and rated by Demotech. 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.