Florida Lawmakers Approve Expanded Citizens Insurance Clearinghouse

New clearinghouses will allow more private insurers to take on commercial policies from state-run Citizens Property Insurance.

Published on Mar. 9, 2026

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The Florida legislature has passed a bill that directs Citizens Property Insurance, the state's insurer of last resort, to establish two new clearinghouses by January 1, 2027. One clearinghouse will allow authorized insurers to make offers on commercial residential and non-residential policies, while the other will open the process to approved surplus lines insurers. The goal is to move more policies out of Citizens and into the private market.

Why it matters

This legislation is part of an ongoing effort to reduce the number of policies held by Citizens Property Insurance, which has grown significantly in recent years as private insurers have pulled back from Florida's volatile property insurance market. Proponents argue that expanding the clearinghouse process will strengthen Florida's insurance system and create more options for commercial property owners, but critics are concerned about the lack of oversight for surplus lines insurers.

The details

The new bill, which now heads to Governor Ron DeSantis' desk, directs Citizens to establish the two clearinghouses by the start of 2027. Under the commercial residential and non-residential clearinghouse, private insurers will be able to make takeout offers on these policies. The surplus lines clearinghouse will allow approved surplus lines insurers, which are not licensed in Florida but can operate as 'eligible' insurers, to also participate in the process. Property owners would not be obligated to accept these outside offers, but if they do receive an offer through the clearinghouse, they would be prevented from staying with Citizens.

  • The bill was approved by the Florida House on March 9, 2026 in an 88-19 vote.
  • The Florida Senate had previously approved the bill on March 1, 2026 in a 34-1 vote.
  • The new clearinghouses are required to be established by January 1, 2027.

The players

Citizens Property Insurance

The state-run insurance carrier that serves as Florida's insurer of last resort.

Mike Redondo

Republican state representative who sponsored the House version of the bill.

Allison Tant

Democratic state representative who cautioned against pushing customers out of Citizens and called for more oversight of surplus lines insurers.

Jose Alvarez

Democratic state representative who said the changes will bring Citizens back to being the 'insurer of last resort' and allow the private sector to step in, which will create healthy competition and lower prices.

Mike Yaworsky

Florida Insurance Commissioner who expressed concerns about the lack of oversight for surplus lines carriers.

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What they’re saying

“All this would do, if they receive an offer of coverage from the surplus lines clearinghouse, it would just prevent them from staying within Citizens. They would not be obligated to accept that offer. They could use an agent to go back and shop the market again, whether the admitted market or the surplus lines market.”

— Mike Redondo, State Representative

“They do not have to disclose what the new premium might be, what new terms of coverage might be and what other provisions might be in place up until the day before the new policy is set to renew. That could be a significant challenge for a number of consumers that are in this residual marketplace right now.”

— Mike Yaworsky, Florida Insurance Commissioner

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, Grocery Employee (Instagram)

What’s next

Governor Ron DeSantis is expected to sign the bill into law.

The takeaway

This legislation is part of an ongoing effort to reduce the number of policies held by Citizens Property Insurance, Florida's state-run insurer of last resort. While proponents argue it will strengthen the insurance market, critics are concerned about the lack of oversight for surplus lines insurers that will be able to participate in the new clearinghouse process.