Florida's New Citizens Insurance Clearinghouse: What HOA & Condo Boards Must Know

Why condo and HOA policies are in scope

Citizens sorts its business into personal lines and commercial lines. A condominium association's master policy covering the common elements, and an HOA's policy on association-owned buildings and common property, are commercial residential risks. Those are the policies the new clearinghouses target.

Citizens has used a clearinghouse for personal lines (individual homeowners' policies) since 2013. SB 1028 extends the idea to commercial lines and adds a second track for surplus lines insurers. Those carriers aren't licensed ("admitted") in Florida, but they're allowed to write coverage the admitted market won't.

The commercial residential book has already shrunk fast. According to the Senate bill analysis, Citizens had 7,654 commercial residential policies at the end of 2023 and 2,995 by November 30, 2025. The associations still in Citizens tend to be the ones that had the hardest time finding private coverage, and those are the boards this law affects most.

How the new clearinghouse works

The law creates two commercial clearinghouses: one for authorized (admitted) insurers and one for approved surplus lines insurers. Both new applications and renewals go through them.

Step 1: Admitted insurers get the first look. Your submission goes to the authorized-insurer clearinghouse. Under the existing commercial residential rule, your association is ineligible for Citizens if an admitted insurer offers comparable coverage at a premium no more than 20% above Citizens'.

Step 2: Surplus lines insurers get the next look. If no admitted carrier makes a qualifying offer within **five business days, the risk moves to the surplus lines clearinghouse. Your association becomes ineligible for Citizens if an approved surplus lines insurer offers comparable coverage with a total cost no more than 15% above Citizens' total cost.

Three definitions in the law matter:

• "Comparable coverage" means coverage that is equivalent to or better than Citizens' coverage in all aspects. Administrative and procedural terms don't count toward that test.
• "Total cost" isn't just premium. It's the annual premium plus all fees, taxes, assessments, surcharges, and other mandatory charges for the full policy period. Surplus lines policies carry their own taxes and fees, so the 15% comparison uses all-in numbers.
• "Approved surplus lines insurer" means a carrier rated A- or better with a financial size category of A-VII or higher by A.M. Best, recommended by the clearinghouse administrator, and verified by the Office of Insurance Regulation.

If an offer comes in above the threshold, the association can still choose: take the private offer or stay with Citizens.

The part boards will feel: notice and timing

This is where SB 1028 changes the experience most for an association.

• Admitted-insurer offers keep the normal protection. If Citizens nonrenews you because an admitted insurer made a qualifying offer, the standard 45-day nonrenewal notice still applies.
• Surplus lines offers don't. If Citizens nonrenews you because an approved surplus lines carrier made a qualifying offer, the usual nonrenewal-notice statute (s. 627.4133) does not apply. Instead, the clearinghouse administrator must send the first-named insured a written nonrenewal notice within five days of the offer, stating the reason. If that notice isn't sent, the surplus lines ineligibility rule doesn't apply to your policy.

In practice, a board could learn close to its renewal date that its Citizens policy won't renew and that a surplus lines policy is the replacement. Associations that wait for the renewal paperwork to start thinking about this will be short on time.

Why moving to surplus lines isn't just a carrier swap

Surplus lines coverage can be perfectly solid, and the A-/A-VII rating floor screens out weaker carriers. Boards should still understand what changes:

• No FIGA backstop. The Florida Insurance Guaranty Association pays claims when an admitted insurer becomes insolvent. Surplus lines insurers aren't covered by it.
• Less rate and form oversight. Surplus lines carriers have more freedom on rates and policy forms than admitted carriers. "Comparable coverage" protects you at the switch, but your association should still review deductibles, exclusions, and named-storm terms line by line.
• Lender and governing-document requirements. Some mortgage investors, lenders, and governing documents set carrier-rating or coverage standards. Confirm a replacement policy meets them so owners don't run into problems selling or refinancing.
• Fewer chances to stay in Citizens later. Once a qualifying offer makes you ineligible, Citizens isn't a fallback for that term.

Where things stand now

The law took effect when it was signed, and implementation is underway:

• On September 1, 2026, Citizens announced it had chosen Bridge Specialty Wholesale, a division of Brown & Brown, to run the surplus lines commercial clearinghouse. The next-ranked bidder, a Ryan Specialty subsidiary, has signaled a protest, so the final contract could still change.
• As of early September, Citizens hadn't awarded the admitted-insurer clearinghouse contract and reported few responsive bids. The law lets Citizens hold off on a clearinghouse that lacks enough insurer participation.

The January 1, 2027 deadline hasn't moved. Any association with a Citizens policy renewing in 2027 should plan as if the clearinghouse will apply at that renewal.

Board checklist for 2027 budgeting

• Confirm your carrier and renewal date. Find out whether your master or common-property policy is with Citizens and when it renews in 2027.
• Talk to your agent now. Ask how they'll handle clearinghouse submissions and how much warning they expect to get before a surplus lines offer.
• Have your agent shop the market before renewal. Picking your own private carrier is usually better than having one picked for you by a clearinghouse deadline.
• Budget for a range, not a single number. Price the insurance line item for both a Citizens renewal and a private or surplus lines offer up to 15–20% higher on total cost.
• Read your governing documents and lender requirements for insurer-rating, deductible, or coverage minimums.
• Update your replacement-cost appraisal if it's stale, so every quote is based on the right values. Condominium associations already need one at least every 36 months under s. 718.111(11).
• Decide who can act fast. Clearinghouse timelines are short. Consider giving the president or an insurance committee authority to approve a replacement policy within set limits, subject to ratification at the next meeting.
• Tell owners early. A carrier change, especially to surplus lines, makes owners and their HO-6 agents ask questions. Explain it before the premium shows up in the budget.

FAQ

• What is the Florida Citizens commercial clearinghouse?

It's a system created by SB 1028 that sends Citizens' commercial policies, including condo and HOA master policies, to private admitted and surplus lines insurers before Citizens can write or renew them. Citizens must have it running by January 1, 2027.

• Does the Citizens clearinghouse apply to condo associations?

Yes. A condominium association's master policy on the common elements is a commercial residential risk, so new applications and renewals go through the commercial clearinghouse.

• Can my association be forced out of Citizens?

Yes. If an admitted insurer offers comparable coverage at no more than 20% above Citizens' premium, or an approved surplus lines insurer offers comparable coverage at no more than 15% above Citizens' total cost, the association becomes ineligible for Citizens.

• What if the private offer costs more than those limits?

The association can choose to accept the private offer or stay with Citizens.

• How much notice will we get if Citizens non-renews us?

If an admitted insurer's offer triggers the non-renewal, the standard 45-day notice applies. If a surplus lines offer triggers it, the administrator must send written notice within five days of the offer, and the usual nonrenewal-notice statute doesn't apply.

• Are surplus lines policies covered by FIGA?

No. The Florida Insurance Guaranty Association protects policyholders of insolvent admitted insurers only. That's one reason SB 1028 requires approved surplus lines carriers to hold an A.M. Best A- rating or better.

• Keep insurance renewals on the board's radar

A clearinghouse offer with a five-day clock is a bad thing to find out about at renewal. My Front Yard helps boards track insurance renewal dates, appraisal cycles, and budget deadlines in one place, so a 2027 renewal doesn't catch anyone off guard. [See how it works →]

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*Sources: CS/CS/SB 1028 (2026), Ch. 2026-150, Laws of Fla. (enrolled text and Senate bill summary); Florida Senate Bill Analysis and Fiscal Impact Statement, SB 1028 (2026); s. 627.3518 and s. 627.351(6), Fla. Stat., as amended; Insurance Journal, "Florida Citizens Awards Commercial Clearinghouse Management to Bridge Specialty" (Sept. 2, 2026); News Service of Florida, "Lawmakers approve expanded Citizens clearinghouse plan" (2026).*

*Informational only, not legal or insurance advice. Talk to your association's attorney and insurance agent before making coverage decisions.*