Citizens Property Insurance Corporation counted 95,192 personal lines policies in Broward County in the 2026 Approved Rate Changes by County sheet it published on March 4, 2026. Of those, 26,675 were multiperil HO-3 homeowners policies carrying a current average premium of $5,094, which falls to an approved average of $4,377 after the 14.1% cut.
Those figures matter to a buyer long before the first hurricane season. If your agent cannot place a private policy at a qualifying price, the Citizens premium becomes the insurance number your lender plugs into escrow, into your debt-to-income ratio and onto your Loan Estimate.
A Citizens policy changes a Broward mortgage in three places: the 12-month premium due at closing, the monthly escrow deposit, and the PITIA figure that sets your debt-to-income ratio under Fannie Mae B3-6-03.
This post works through one Broward purchase from pre-approval to Loan Estimate. Every rule cites its governing section, and every assumed figure is labeled illustrative.
When A Broward Buyer Ends Up On Citizens
Citizens is Florida's insurer of last resort, and the statute keeps it that way through an offer-based eligibility test. The test is set out in section 627.351(6)(c)5., Florida Statutes (2025), and it compares any private offer you receive against the Citizens premium for comparable coverage.
For a primary residence, sub-subparagraph 5.a. says a new applicant is not eligible for Citizens if an authorized insurer offers coverage including wind, unless that private premium is more than 20 percent greater than the Citizens premium. Sub-subparagraph 5.b. applies the same 20 percent test to non-primary residences, including offers from approved surplus lines insurers under an office-approved take-out plan.
Under section 627.351(6)(c)5.a., Florida Statutes (2025), a primary-residence buyer qualifies for Citizens only if every private offer with wind coverage is more than 20% above the Citizens premium.
In practice, this means your agent shops the private market first. If the best private quote clears the 20 percent line, or no private carrier will write the home at all, the risk becomes eligible for a Citizens policy.
Keep in mind that the test runs again at every renewal. The same sub-subparagraph says that, for policies renewing on or after April 1, 2023, a primary residence is not eligible to stay with Citizens unless the private renewal offer is more than 20 percent greater than the Citizens renewal premium.
What Citizens Charges In Broward For 2026
The Office of Insurance Regulation approved the 2026 rates in early March. According to the Citizens release dated March 4, 2026, the new rates take effect July 1 for new policyholders and apply to existing policies at renewal.
Citizens' county sheet breaks the Broward numbers out by policy form. The table below reproduces the Broward rows exactly as the sheet reports them.
| Policy form (Citizens label) | Broward policies | Current average premium | Approved rate change | Approved average premium |
|---|---|---|---|---|
| All personal lines combined | 95,192 | $3,178 | -8.2% | $2,916 |
| Multiperil HO3 | 26,675 | $5,094 | -14.1% | $4,377 |
| Wind-only HW2 | 10,377 | $4,544 | -4.2% | $4,354 |
| Multiperil HO6 | 15,372 | $1,319 | -10.5% | $1,181 |
Note that these are county averages across existing policies, not a quote for any single home. Your actual premium depends on the dwelling's replacement cost, roof age, wind-mitigation features, deductible and distance to the coast — so ask your agent for a written Citizens quote before your lender locks in an insurance figure.
The HO-6 row covers condominium unit owners. If you are buying a condo, the master policy and association dues carry much of the building risk, which is why the unit-owner premium runs far lower; our post on how condo special assessments affect a mortgage walks through the dues side of that ledger.
The Flood Requirement That Rides Along
A Citizens policy can bring a second premium with it. Section 627.351(6)(aa), Florida Statutes (2025), requires personal lines residential policyholders to secure and maintain flood insurance from another insurer as a condition of Citizens coverage, phased in by dwelling replacement cost.
The phase-in reads as follows in the statute. The tiers are reproduced in the statute's own order.
| Policies effective on or after | Flood coverage required for |
|---|---|
| January 1, 2024 | A structure with a dwelling replacement cost of $600,000 or more |
| January 1, 2025 | A structure with a dwelling replacement cost of $500,000 or more |
| January 1, 2026 | A structure with a dwelling replacement cost of $400,000 or more |
| January 1, 2027 | All other personal lines residential property insured by the corporation |
Properties inside a FEMA special flood hazard area follow a separate track under subparagraph 2. New Citizens policies issued on or after April 1, 2023 need flood coverage at issuance, and policies renewing on or after July 1, 2023 need it by renewal.
Citizens condo unit-owner (HO-6) policies and policies that exclude wind are exempt from the flood mandate in section 627.351(6)(aa)3. A wind-only Citizens policy still covers wind, so the mandate applies.
That last distinction catches some Broward buyers off guard. If you pair a private policy that excludes wind with a Citizens wind-only HW2 policy, the Citizens policy covers wind and therefore falls under the flood requirement.
What's more, a buyer closing in late 2026 on a home with a replacement cost under $400,000 may not need flood today, yet the January 1, 2027 tier reaches every remaining policy. Keep in mind that the first renewal can add a flood premium your original escrow analysis never included.
How The Premium Enters Your Debt-To-Income Ratio
Fannie Mae defines the housing payment it qualifies you on in Selling Guide B3-6-03, Monthly Housing Expense for the Subject Property (12/16/2020). That section sums principal and interest, property, flood and mortgage insurance premiums, real estate taxes, special assessments and association dues into a figure it calls PITIA.
For a principal residence, that PITIA figure is the housing expense used in your DTI ratio. Accordingly, every dollar of a Citizens premium — and every dollar of a required flood policy — lands directly in the numerator.
The ceilings sit in Selling Guide B3-6-02, Debt-to-Income Ratios (04/02/2025). The tiers below mirror that section.
| Underwriting path (B3-6-02) | Maximum total DTI ratio |
|---|---|
| Manually underwritten | 36% of stable monthly income |
| Manually underwritten, meeting the credit score and reserve requirements in the Eligibility Matrix | Up to 45% |
| Desktop Underwriter (DU) loan casefiles | 50% |
Fannie Mae counts property and flood insurance premiums in PITIA under B3-6-03, so a higher Citizens premium raises your DTI dollar for dollar against the 36%, 45% or 50% ceilings in B3-6-02.
FHA, VA and jumbo programs set their own ratio limits and housing-expense definitions in their own guides. Accordingly, if your loan is not a Fannie Mae conventional loan, ask your loan officer which guide section governs your file.
A Worked Broward Example With 2026 Figures
The example below follows one buyer from pre-approval to Loan Estimate. The Citizens premium is the Broward HO3 approved average from Citizens' March 4, 2026 county sheet; every other rate, tax and premium is illustrative and labeled as such.
Here are the inputs for the purchase:
- Price and loan. A $450,000 single-family home in Broward with 10% down, for a $405,000 conventional loan.
- Rate (illustrative). A 30-year fixed note rate of 6.25%, which produces principal and interest of $2,493.65 per month; your rate depends on credit, LTV and term.
- Property taxes (illustrative). $7,800 per year, standing in for the reasonable estimate B3-6-03 requires on a purchase.
- Income and debts (illustrative). $11,500 in gross stable monthly income and $650 in other monthly debt payments.
- Pre-approval insurance placeholder (illustrative). $3,000 per year, with no flood policy assumed.
Next, the agent shops the home. The best private offer with wind coverage comes back at $5,400 per year (illustrative), against a Citizens premium of $4,377.
Twenty percent above $4,377 is $5,252.40, and the private offer is higher than that line. As a result, the buyer is eligible for Citizens under section 627.351(6)(c)5.a.
Then the replacement cost estimate comes back at $420,000 (illustrative). Because the policy takes effect after January 1, 2026 and the dwelling replacement cost is $400,000 or more, a flood policy is required; the buyer is quoted $1,200 per year (illustrative).
| Monthly line item | At pre-approval | After Citizens + flood |
|---|---|---|
| Principal and interest (illustrative rate) | $2,493.65 | $2,493.65 |
| Property taxes (illustrative) | $650.00 | $650.00 |
| Homeowner's insurance | $250.00 | $364.75 |
| Flood insurance (illustrative) | $0.00 | $100.00 |
| Monthly escrow deposit | $900.00 | $1,114.75 |
| PITIA housing payment | $3,393.65 | $3,608.40 |
| Total DTI ($650 other debts, $11,500 income) | 35.16% | 37.03% |
The housing payment climbs $214.75 per month, and total DTI moves from 35.16% to 37.03%. That is a shift of 1.87 percentage points from insurance alone.
In this illustrative Broward example, moving to a $4,377 Citizens policy plus required flood coverage adds $214.75 a month and lifts total DTI from 35.16% to 37.03% — past the 36% manual cap.
On a DU casefile, 37.03% sits well inside the 50% ceiling. However, on a manually underwritten loan, the file now exceeds the 36% base limit and must meet the Eligibility Matrix credit score and reserve requirements to qualify at up to 45%.
This is why the insurance quote belongs in the file before you go under contract. A $3,000 placeholder in a Broward pre-approval can understate the real payment by enough to move the underwriting path.
Where The Citizens Premium Lands On Your Loan Estimate
The Loan Estimate format is set by Regulation Z, 12 CFR 1026.37. The Citizens premium shows up on page 1 and page 2, and each appearance answers a different question.
Page 1: Projected Payments
Under 1026.37(c)(4), the Projected Payments table carries a line labeled "Taxes, Insurance & Assessments," expressed as a monthly amount. In the example, that figure would reflect $1,114.75 per month in taxes and insurance, and the escrow row shows the portion your servicer will collect with each payment.
Page 2: Prepaids
Under 1026.37(g)(2)(i), the first line under "Prepaids" is labeled "Homeowner's Insurance Premium ( __ months)," showing the months and dollars you pay at consummation. If your lender collects the first year's premium at consummation, $4,377 would appear on this line; the official commentary to 37(g)(2) also lists flood insurance premiums as a prepaid item, adding $1,200 in the example.
On page 2 of the Loan Estimate, the 12-month Citizens premium appears under Prepaids as "Homeowner's Insurance Premium," per 12 CFR 1026.37(g)(2)(i). Flood premiums are listed as prepaids too.
Page 2: Initial Escrow Payment At Closing
Under 1026.37(g)(3), the "Initial Escrow Payment at Closing" section itemizes each escrowed charge with its monthly amount and the number of months collected. The months depend on when the next premium and tax bills fall due relative to your first payment, so the figure varies by closing date.
Regulation X caps how much extra the servicer can hold. 12 CFR 1024.17(c)(1) limits the cushion to no more than one-sixth of the estimated total annual payments from the escrow account.
In the example, annual escrow disbursements total $13,377 ($7,800 taxes, $4,377 Citizens, $1,200 flood). One-sixth of that is $2,229.50, which is the ceiling on the cushion — and $429.50 higher than the $1,800 cap on the pre-approval figures.
Practical Steps Before You Sign A Contract
Because the 20 percent test, the flood tiers and the DTI ceilings all interact, the order of operations matters. Here's a list of the steps that keep the Citizens number from surprising your underwriter:
- Request a binding quote early. Ask your agent for both the best private offer and a Citizens quote on the specific address, with a four-point and wind-mitigation inspection if the home is older.
- Ask for the replacement cost. The replacement cost estimate decides whether a flood policy is required now under the 2026 tier or later under the 2027 tier.
- Send the quotes to your loan officer. Have the lender rerun DU or the manual worksheet with the real premium rather than a placeholder.
- Read pages 1 and 2 together. Match the Prepaids premium to the quote and confirm the monthly escrow line includes flood if it applies.
- Budget for the renewal. Citizens re-tests eligibility at renewal, and the 2027 flood tier can add a premium at the first anniversary.
All of these steps come down to one principle: underwrite with the insurance number you will actually pay. After all, the policy has to be bound before you can close.
If an escrow shortfall appears after your first year, the federal escrow-analysis rules work the same way they do in our Cook County escrow shortage walkthrough. For the wider pressure on premiums, see our analysis of the insurance affordability squeeze on homeowners, and for statewide programs and closing rules start with the Florida mortgage guide.
Florida buyers should also check two state programs that affect escrow and closing cash. Our posts on Florida homestead portability and Florida Hometown Heroes down-payment assistance by county cover the tax side of escrow and the cash you bring to closing.
Bringing The Numbers Together
Citizens' own sheet shows 26,675 HO3 policyholders in Broward, so a buyer placed with Citizens is in well-traveled territory. The point is to see the premium early enough that your escrow, your DTI and your Loan Estimate all reflect it before the contract clock starts running.
Remember that the 2026 county average is a starting point, not your quote. Confirm your premium with your agent, your flood requirement with the replacement cost, and your qualifying ratio with your lender.
This article is for informational purposes and is not financial / mortgage / contractor advice. Consult a licensed professional in your jurisdiction.
Figures verified against Citizens' 2026 Approved Rate Changes by County (March 4, 2026), section 627.351, Florida Statutes (2025), Fannie Mae Selling Guide B3-6-02 and B3-6-03, and 12 CFR 1024.17 and 1026.37 as of October 2026.