Floridas home insurer of last resort is in serious trouble. Will Milton put it over the edge? | Money [Video]

New York (CNN) — An exodus of national insurance companies from Florida, combined with local private insurers canceling plans, has left many homeowners there with only one option: Citizens Property Insurance Corp.

The state-backed nonprofit home insurance company was set up to be an insurer of last resort for those who can’t find coverage in the private market. With 1.3 million policies in force as of last month, three times as many compared to five years ago, Citizens is by far the largest provider in the state.

But now, with Hurricane Helene and Hurricane Milton both making landfall and devastating homes in Florida within just days of each other, the insurer will almost certainly have to pay out billions of dollars in claims.

Can Citizens stay afloat?

The answer lies in the insurer’s structure – which might be reassuring to policyholders, even if it ultimately leads to higher premiums.

Staying solvent

Florida Gov. Ron DeSantis warned earlier this year that …