That's partially true. Landlords can still get Citizens if their house is under 200K. But since I'm in FL and on a work visa, I can't get homestead. Even though I've lived here for 12 years, have a FL drivers liscence, 2 FL registered autos, and qualify for in-state tuition as residents, my wife and I are not considered residents of FL for homestead. That means I may not be able to buy insurance at all! But if I rented my house with a long term lease, I could get Citizens. My agent is in a tizzy because they have no idea how I can get insurance at all. And Citizens is supposed to be the company of alst resort and insure those of us who can't get insurance from the private market.
Think about multi family units!
A gentleman on a local radio talk show lamented about how he thought he'd acheived the American dream via real estate, slowly building what sounds like several million in assets and employing a could hundred people only to find that if he can get insurance for all his properties it will cost a fortune that must be passed on.
That is IF he can get insurance. If he can't, what then? He might not be able to sell.