Citizens Property Insurance expands mandatory arbitration despite pushback

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Citizens Property Insurance, Florida's insurer of last resort, is expanding its mandatory arbitration system for claim disputes despite growing scrutiny from lawmakers and questions about the process's constitutionality. The company is now adding new language to renewal policies that would force even appraisal disputes into arbitration, where Citizens pays the judges up to $250,000 annually and wins 99% of cases. This is leaving some policyholders, like Brandi Roberts, feeling they have no choice but to drop their claims due to the unfavorable odds.

Why it matters

The expansion of Citizens' arbitration system raises concerns about fairness and transparency, as the process appears to heavily favor the insurer over policyholders. This could have significant implications for homeowners seeking to dispute claim denials, especially those on fixed incomes or with limited resources to fight the process.

The details

Citizens is pushing more policyholders into its mandatory arbitration system, which forces disputes out of traditional courts and before a single judge paid by Citizens. The company defends the process, saying it resolves disputes faster than state court. However, critics argue the system is unconstitutional and unfairly biased, with Citizens winning 99% of disputes. The new policy language also allows Citizens to challenge appraisal awards it deems too high and take the decision back before the judge it pays.

• In 2023, Citizens added the mandatory arbitration clause to its policies.
• In October 2024, Brandi Roberts filed a claim with Citizens after Hurricane Milton damaged her home.
• Roberts' claim has been pending for a year and a half.

What they’re saying

What’s next

Lawmakers are working to give Citizens Property Insurance customers more power to dispute claim denials, but the insurer is moving in the opposite direction by expanding its mandatory arbitration system.