A Florida congressman is raising concerns over how Citizens Property Insurance Corp., the state-backed insurer, handles disputes about claims. US Representative Maxwell Frost, who represents Florida’s 10th District, says the current process seems to favor Citizens over policyholders.
Unlike private insurers, Citizens requires policyholders to settle claims disputes through the Florida Division of Administrative Hearings (DOAH). Frost points out that this division has sided with Citizens in nearly every case brought forward this year. His worry is that this system is unbalanced and unfair to those filing claims.
The arbitration process Citizens uses comes from a law passed in 2023 called House Bill 799. That bill also covered flood and condo insurance provided by Citizens. Frost wants to see a lot more information about how this law came to be, including who was involved in writing it and what role Governor Ron DeSantis’ office and the Florida Office of Insurance Regulation had in the process.
Citizens spokesman Michael Peltier says the dispute system is fair and efficient. He explains that before a case goes to DOAH, it is reviewed internally at least six times. Peltier also notes that cases usually settle within 90 days through this process, which is much faster than the two years it might take in regular state courts.
Peltier adds that about 90% of disputes get resolved between the parties themselves without needing a judge’s decision. In fact, more than a third of those cases turn out in favor of policyholders. He says many claims get dropped because there isn’t enough evidence to support them.
In the Florida homeowners insurance market, Citizens holds the largest share at nearly 15% of direct premiums written in 2024, according to BestWire. The next biggest insurer, Universal Insurance Holdings Group, has just over 8%.
As questions continue about balancing the interests of insurers and policyholders, Frost’s request for more transparency aims to shine a light on Citizens’ dispute process. Many will be watching to see if changes come from this scrutiny.