Florida is on the verge of requiring mediation in all disputed property insurance claims before any lawsuits can be filed. This change comes after the state Senate approved Senate Bill 108, which aims to settle disputes without immediate court involvement.
Sponsored by Senator Polsky, the bill targets property insurance claims under personal lines and commercial residential policies. It makes mediation a mandatory step before the appraisal process and before any litigation can begin. Mediation can take place in person, over the phone, or through other electronic means, as long as both sides agree. Everyone named on the insurance policy, or their chosen representative, must attend the mediation session regardless of the format.
The bill puts the cost of mediation mostly on the insurer, except if the policyholder or their representative fails to show up — in that case, the policyholder would cover any rescheduling expenses. On the other hand, if the insurer doesn’t show up without a good reason, they must reimburse the policyholder for actual expenses related to attending. Notably, if the insurer’s representative can’t settle the claim for the full amount, the insurer is considered as having failed to appear.
The Florida Department of Financial Services would oversee the mediation program, setting the rules and even adopting emergency ones as needed. The department could also appoint an administrator to manage the process. To support this, the bill allocates $1 million from the Insurance Regulatory Trust Fund for administration purposes.
Anything said or shared during mediation would be confidential, treated as settlement talks leading up to possible litigation. Mediators would serve as agents of the department and have legal immunity. Following the start of mediation, policyholders must provide insurers with all supporting documentation for their claim within 10 days.
Mediation results wouldn’t be binding unless both parties reach a written settlement. If a policyholder doesn’t have a lawyer or public adjuster, they get three business days to cancel the agreement unless they’ve already cashed or deposited any related payment. Once finalized and not rescinded, the settlement acts as a full release of the claims discussed.
There are exceptions. The bill doesn’t apply to commercial coverages, auto insurance, or liability disputes within property insurance policies. Claims involving suspected fraud, major misrepresentations, or those under $500 are also excluded unless both parties agree to mediate.
Senate Bill 108 is set to take effect on January 1, 2027, with some parts starting earlier on July 1, 2026. Although it has passed the Senate, it has yet to become law.
This new approach could help ease court workloads and encourage faster resolutions in property insurance disputes across Florida.