Citizens Property Insurance Denied Your Claim? What to Do (2026)

Citizens Property Insurance Denied Your Claim in Florida

Citizens Property Insurance Corporation is Florida's largest property insurer and the state-created insurer of last resort. With over 1.2 million policies in force, Citizens covers more Florida homes than any private carrier. But being the biggest does not mean every claim is handled fairly. If Citizens has denied your property damage claim, understanding your rights and options is essential to recovering the benefits you paid for.

About Citizens Property Insurance Corporation

Citizens Property Insurance Corporation is a state-run, not-for-profit insurer created by the Florida Legislature in 2002 to provide property insurance to Florida homeowners who cannot obtain coverage in the private market.

• Type: State-created, not-for-profit insurer of last resort
• Headquarters: Jacksonville, FL (with offices in Tallahassee)
• Policies in Force: Over 1.2 million (as of recent reporting periods)
• Market Position: Florida's largest property insurer by policy count
• Governance: Overseen by a Board of Governors appointed by the Governor, CFO, Senate President, and Speaker of the House
• Products: Homeowners (HO-3), condo (HO-6), dwelling fire (DP-3), and wind-only policies

While Citizens was designed as a safety net, many Florida homeowners end up with Citizens because private insurers have left the state or refused to insure their properties. Citizens' premiums are subject to rate caps set by the Legislature, which can make coverage more affordable than private alternatives — but claims handling remains a major source of complaints.

Common Reasons Citizens Denies Claims

• Pre-existing or prior damage: Citizens frequently denies claims by arguing that the reported damage predates the covered event. This is especially common for roof claims, where Citizens may attribute damage to age, weathering, or previous storms.
• Maintenance and wear and tear: Citizens excludes damage resulting from lack of maintenance. The insurer may argue that a water leak was caused by gradual deterioration rather than a sudden covered event.
• Excluded perils: Standard Citizens policies exclude flood damage, earth movement, and certain types of water damage. Policyholders may not realize these exclusions until a claim is denied.
• Late notice of claim: Citizens may deny a claim if it was reported outside the timeframe the insurer considers reasonable, even if the policyholder had valid reasons for the delay.
• Failure to submit proof of loss: Citizens may deny a claim if the policyholder did not submit a sworn proof of loss within the required timeframe, typically 60 days from the insurer's request.
• Cosmetic damage exclusions: Some Citizens policies include endorsements excluding coverage for cosmetic damage, particularly to metal roofs and screens. This can significantly reduce the scope of covered damage.
• Disputing the cause of loss: Citizens may argue that the damage was caused by a non-covered peril. For example, the insurer might classify wind-driven rain damage as flood damage (excluded) or attribute interior water stains to condensation rather than a roof leak.

What to Do When Citizens Denies Your Claim

1. Read the denial letter carefully: Citizens must provide a written explanation of the denial, citing specific policy provisions. Understanding the stated reason is the first step in challenging it.
2. Document the damage: Photograph and video all damage. Preserve damaged materials. Maintain a written log of every interaction with Citizens, including dates, times, names, and what was discussed.
3. Get an independent damage assessment: Hire a licensed public adjuster or contractor to inspect your property and provide an independent repair estimate. Citizens' estimate may significantly undervalue the damage.
4. Request your claim file: You have the right to obtain a copy of your complete claim file from Citizens, including adjuster reports, photographs, engineering reports, and internal notes.
5. Consider the appraisal process: If the dispute is over the amount of loss rather than coverage, your policy likely includes an appraisal clause. Either party can invoke appraisal, where independent appraisers determine the value of the claim.
6. File a Civil Remedy Notice: Under Florida Statute 624.155, you can file a CRN with the Florida Department of Financial Services. Citizens has 60 days to cure the alleged violation before you can pursue a bad faith lawsuit.
7. Hire a property damage attorney: An experienced Florida insurance lawyer can evaluate the denial, identify weaknesses in Citizens' position, and pursue recovery through negotiation, appraisal, or litigation.

Bad Faith Warning Signs From Citizens

• Failing to inspect your property within a reasonable time after the claim is reported
• Offering a settlement that is clearly insufficient to cover necessary repairs
• Denying your claim based on a policy provision that does not apply to your specific situation
• Ignoring independent estimates and contractor assessments you submit
• Requiring repeated submissions of the same documentation
• Failing to provide timely updates on your claim status
• Closing your claim without adequate explanation or resolution

How to File a Civil Remedy Notice Against Citizens

1. Download the CRN form from the Florida Department of Financial Services website.
2. Complete the form with your Citizens policy number, claim number, and a detailed description of the alleged bad faith conduct.
3. Submit the CRN to the Florida DFS, which forwards a copy to Citizens.
4. Citizens has 60 days to cure the violation by paying the claim or making a fair offer.
5. If Citizens fails to cure within 60 days, you may file a bad faith lawsuit in Florida court.

Note: Because Citizens is a state-created entity, there are some unique procedural considerations when litigating against them. An experienced attorney can navigate these nuances.

Louis Law Group's Experience With Citizens Cases

Louis Law Group has significant experience representing Florida homeowners against Citizens Property Insurance Corporation. We understand the unique aspects of litigating against a state-created insurer and the specific tactics Citizens uses to deny and underpay claims.

Our approach includes:

• Thorough policy and claim file analysis
• Independent damage assessments by qualified professionals
• Strategic negotiation with Citizens' claims team
• Appraisal process management when appropriate
• Litigation when Citizens refuses to offer a fair settlement

We handle all Citizens cases on a contingency fee basis — no fees unless we recover for you.

Frequently Asked Questions

Is Citizens Property Insurance the same as other Florida insurers?

No. Citizens is a state-created, not-for-profit entity — not a private insurance company. It was created by the Florida Legislature as an insurer of last resort. However, Citizens is still required to handle claims in good faith under Florida law.

Can I sue Citizens Property Insurance?

Yes. Although Citizens is a state-created entity, Florida policyholders can sue Citizens for breach of contract and bad faith, subject to certain procedural requirements. Citizens does not have sovereign immunity from insurance claims.

How long does Citizens have to pay my claim?

Under Florida Statute 627.70131, Citizens must pay or deny your claim within 60 days of receiving a complete proof of loss (90 days for hurricane claims). If Citizens misses these deadlines, additional remedies may be available.

What if Citizens says my damage is from flooding?

If Citizens denies your claim by attributing damage to flooding rather than wind, an independent engineer or damage assessment can help establish the true cause of loss. Many storm events involve both wind and water damage, and proper attribution is critical to your claim.

How do I get off Citizens and onto a private insurer?

Citizens periodically depopulates its policies by transferring them to private carriers through the "take-out" program. You can also shop for private coverage independently. If a private insurer offers coverage at a comparable or lower rate, you may be required to leave Citizens.

Fight Citizens' Denial of Your Claim

Citizens Property Insurance may be the largest insurer in Florida, but that does not mean their denial of your claim is correct. Contact Louis Law Group today for a free consultation and learn how we can help you recover what you are owed.

Call (833) 657-4812 or submit your claim for a free case evaluation.