Calls for Reform in Florida Citizens Forced Arbitration Process

A coalition of consumer protection and insurance reform organizations has raised concerns about Florida Citizens Property Insurance Corporation's use of forced arbitration to resolve disputes between the insurer and policyholders. The coalition highlights that Florida Citizens, as the state's insurer of last resort, uses an appeals process where policyholders have lost over 90% of cases. This arbitration system often results in settlements of less than $500 and forces policyholders to risk paying the insurer's attorney fees, limiting meaningful relief after property damage, particularly following climate-related disasters. The groups argue that this lack of transparency and basic legal protections undermines public trust and disadvantages Floridian homeowners who rely on Citizens due to shrinking private market coverage. They urge the Florida Insurance Commissioner to reform the appeals process to ensure fairer dispute resolution and better consumer protection. The issue is compounded by Florida Citizens' role in providing coverage when other options are unavailable, indicating an urgent need for regulatory attention amid increasing climate risks and insurance market challenges in the state.