Property Insurance Claims

HB 459 2026

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A bill to be entitled 1
An act relating to property insurance claims; amending 2
s. 627.7015, F.S.; establishing a mandatory procedure 3
for resolution of disputed property insurance claims; 4
deleting obsolete provisions; revising legislative 5
intent and purpose; requiring certain entities to 6
administer a specified law in a certain manner; 7
requiring insurers, at specified times, to notify 8
policyholders of the mandatory procedure; requiring 9
the Department of Financial Services to prepare a 10
consumer information pamphlet to be provided to 11
policyholders at specified times; authorizing a 12
policyholder or an insurer to file a petition with the 13
Division of Administrative Hearings to resolve certain 14
claims; specifying requirements for the filing and 15
service of such petition; requiring the department to 16
inform policyholders of the location of the Division 17
of Administrative Hearings and the division's website 18
address; specifying that the parties to the claim must 19
bear the cost of certain conferences; requiring an 20
administrative law judge to review the petition upon 21
receiving it; requiring the administrative law judge 22
to dismiss petitions that do not contain specified 23
information; requiring that the petition include a 24
certain certification; specifying that dismissal of a 25

HB 459 2026

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petition or a portion of a petition is without 26
prejudice and does not require a hearing; specifying 27
that motions to dismiss must be handled in a specified 28
manner; requiring the insurer to pay the requested 29
claim or file a response to the petition within a 30
specified timeframe; specifying filing and content 31
requirements for the insurer's response to the 32
petition; requiring the administrative law judge to 33
conduct proceedings in a specified manner; providing 34
an exception; requiring the administrative law judge 35
to make a final determination of total coverage amount 36
within a specified timeframe; requiring such amount to 37
be paid in a specified manner; revising the definition 38
of the term "claim"; repealing ss. 627.70151, 39
627.70152, 627.70153, and 627.70154, F.S., relating to 40
appraisal clauses in property insurance contracts, 41
suits arising under a property insurance policy, 42
consolidation of residential property insurance 43
actions, and mandatory binding arbitration of property 44
insurance policies, respectively; amending ss. 45
627.351, 627.70131, and 627.7074, F.S.; conforming 46
provisions to changes made by the act; providing an 47
effective date. 48
49
Be It Enacted by the Legislature of the State of Florida: 50

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51
Section 1. Section 627.7015, Florida Statutes, is amended 52
to read: 53
627.7015 Mandatory Alternative procedure for resolution of 54
disputed property insurance claims.— 55
(1) This section sets forth a nonadversarial alternative 56
dispute resolution procedure for an a mediated claim resolution 57
conference prompted by the need for effective, fair, and timely 58
resolution handling of disputed property insurance claims. There 59
is a particular need for a mandatory an informal, nonthreatening 60
forum, available at the election of either party, for helping 61
parties who elect this procedure to resolve their claims 62
disputes regarding because most homeowner and commercial 63
residential insurance policies obligate policyholders to 64
participate in a potentially expensive and time-consuming 65
adversarial appraisal process before litigation. The procedure 66
set forth in this section is designed to bring the parties 67
together to ensure the efficient delivery of the coverage 68
offered under the policy, helping to restore an owner's property 69
and livelihood to normalcy after a disaster or loss while 70
maintaining reasonable costs to the insurer for a mediated 71
claims settlement conference without any of the trappings or 72
drawbacks of an adversarial process. Before participating in 73
resorting to these procedures, policyholders and insurers are 74
encouraged to resolve claims as quickly and fairly as possible. 75

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The department, the office, and the Division of Administrative 76
Hearings shall administer this section in a manner that 77
facilitates the self-execution of the system and the process of 78
ensuring a prompt and cost-effective delivery of payments to 79
insureds This section is available with respect to claims under 80
personal lines and commercial residential policies before 81
commencing the appraisal process , or before commencing 82
litigation. Mediation may be requested only by the policyholder, 83
as a first-party claimant, a third-party, as an assignee of the 84
policy benefits, or the insurer. However, an insurer is not 85
required to participate in any mediation requested by a third-86
party assignee of the policy benefits. If requested by the 87
policyholder, Participation by legal counsel is permitted but is 88
not required. Expert testimony may be used in the procedure, 89
regardless of whether legal counsel is participating. Mediation 90
under this section is also available to litigants referred to 91
the department by a county court or circuit court. This section 92
does not apply to commercial coverages, to private passenger 93
motor vehicle insurance coverages, or to disputes relating to 94
liability coverages in policies of property insurance. 95
(2) At the time of issuance and renewal of a policy or at 96
the time a first-party claim within the scope of this section is 97
filed by the policyholder, the insurer shall notify the 98
policyholder of the mandatory procedure its right to participate 99
in the mediation program under this section. A claim becomes 100

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eligible for mediation after the insurer complies with s. 101
627.70131(7) or elects to reinspect pursuant to s. 102
627.70152(4)(a)3. If the insurer has not complied with s. 103
627.70131(7) or elected to reinspect pursuant to s. 104
627.70152(4)(a)3. within 90 days after notice of the loss, the 105
insurer may not require mediation under this section. This 106
subsection does not impair the right of an insurance company to 107
request mediation after a determination of coverage pursuant to 108
this section or require appraisal or another method of 109
alternative dispute resolution pursuant to s. 627.70152(4)(b). 110
The department shall prepare a consumer information pamphlet for 111
distribution to be provided to policyholders at the time of 112
issuance and renewal of the policy and upon the Governor's 113
declaration of a state of emergency within the policyholder's 114
county persons participating in mediation. 115
(3) A policyholder or an insurer may, for any claim that 116
is ripe, due, and owing, file a petition with the Division of 117
Administrative Hearings to resolve claims which meets the 118
requirements of this section. A party represented by an attorney 119
shall file by electronic means. A party not represented by an 120
attorney may file by certified mail or by electronic means. The 121
department shall inform policyholders of the location of the 122
Division of Administrative Hearings and the division's website 123
address for purposes of filing a petition for resolving a claim. 124
The policyholder shall also serve, by certified mail or 125

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electronic means, copies of the petition to resolve claims on 126
the insurer. The costs of the procedure mediation must be 127
reasonable, and the parties insurer must bear all of the cost of 128
conducting mediation conferences, except as otherwise provided 129
in this section. If a policyholder fails to appear at the 130
conference, the conference must be rescheduled upon the 131
policyholder's payment of the costs of a rescheduled conference. 132
If the insurer fails to appear at the conference, the insurer 133
must pay the policyholder's actual cash expenses incurred in 134
attending the conference if the insurer's failure to attend was 135
not due to a good cause acceptable to the department. An insurer 136
will be deemed to have failed to appear if the insurer's 137
representative lacks authority to settle the full value of the 138
claim. The insurer shall incur an additional fee for a 139
rescheduled conference necessitated by the insurer's failure to 140
appear at a scheduled conference. The fees assessed by the 141
department must include a charge necessary to defray the 142
expenses of the department related to its duties under this 143
section and must be deposited in the Insurance Regulatory Trust 144
Fund. The department may suspend the insurer's authority to 145
appoint licensees if the insurer does not timely pay the 146
required fees. 147
(4) Upon receipt of the petition, an administrative law 148
judge shall review it and shall dismiss any petition or any 149
portion of such petition which does not on its face specifically 150

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identify or itemize all of the following information: 151
(a) The policyholder's name, address, telephone number, 152
and social security number. 153
(b) The insurer's name, address, and telephone number. 154
(c) A detailed description of the loss or damage for which 155
the claim has been filed, including the date it occurred. 156
(d) The alleged acts or omissions of the insurer giving 157
rise to the dispute, including, if applicable, a denial of 158
coverage. 159
(e) An estimate of damages, if known, and the amount that 160
is disputed by the insurer. 161
(f) A specific explanation of any other disputed issue 162
that the administrative law judge will be called to rule upon 163
The department shall adopt by rule a property insurance 164
mediation program to be administered by the department or its 165
designee. The department may also adopt special rules which are 166
applicable in cases of an emergency within the state. The rules 167
shall be modeled after practices and procedures set forth in 168
mediation rules of procedure adopted by the Supreme Court. The 169
rules shall provide for: 170
(a) Reasonable requirement for processing and scheduling 171
of requests for mediation. 172
(b) Qualifications , denial of application, suspension , 173
revocation of approval, and other penalties for mediators as 174
provided in s. 627.745 and the Florida Rules for Certified and 175

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Court-Appointed Mediators. 176
(c) Provisions governing who may attend mediation 177
conferences. 178
(d) Selection of mediators. 179
(e) Criteria for the conduct of mediation conferences. 180
(f) Right to legal counsel. 181
(5) The petition must include a certification by the 182
policyholder or, if the policyholder is represented by counsel, 183
the policyholder's attorney stating that the policyholder or 184
attorney, as applicable, has made a good faith effort to resolve 185
the dispute with the insurer and that the policyholder or 186
attorney was unable to resolve the dispute with the insurer All 187
statements made and documents produced at a mediation conference 188
shall be deemed to be settlement negotiations in anticipation of 189
litigation within the scope of s. 90.408. All parties to the 190
mediation must negotiate in good faith and must have the 191
authority to immediately settle the claim. Mediators are deemed 192
to be agents of the department and shall have the immunity from 193
suit provided in s. 44.107. 194
(6)(a) The dismissal of any petition or portion of such a 195
petition under this section is without prejudice and does not 196
require a hearing Mediation is nonbinding; however, if a written 197
settlement is reached, the policyholder has 3 business days 198
within which the policyholder may rescind the settlement unless 199
the policyholder has cashed or deposited any check or draft 200

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disbursed to the policyholder for the disputed matters as a 201
result of the conference. If a settlement agreement is reached 202
and is not rescinded, it is binding and acts as a release of all 203
specific claims that were presented in that mediation 204
conference. 205
(b) At the conclusion of the mediation, the mediator shall 206
provide a written report of the results of mediation, including 207
any settlement amount, to the insurer, the policyholder, and the 208
policyholder's representative if the policyholder is represented 209
at the mediation. 210
(7) All motions to dismiss must be handled as specified in 211
s. 440.192(5) If the insurer fails to comply with subsection (2) 212
by failing to notify a policyholder of its right to participate 213
in the mediation program under this section or if the insurer 214
requests the mediation, and the mediation results are rejected 215
by either party, the policyholder is not required to submit to 216
or participate in any contractual loss appraisal process of the 217
property loss damage as a precondition to legal action for 218
breach of contract against the insurer for its failure to pay 219
the policyholder's claims covered by the policy. 220
(8) Within 14 days after receipt of the petition, the 221
insurer shall pay the requested claim or file a response to the 222
petition with the Division of Administrative Hearings. If the 223
insurer files a response to the petition, the response must be 224
filed by electronic means. Such response must specify all claims 225

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requested but not paid and explain the insurer's reason for 226
nonpayment. The insurer shall provide copies of the response to 227
the policyholder by certified mail or by electronic means. In 228
ruling on the petition and response to the petition, the 229
administrative law judge shall conduct proceedings in a manner 230
consistent with the process outlined in s. 440.25, except that 231
the administrative law judge shall make a determination within 232
60 days after the filing of the policyholder's petition. After 233
determining coverage, the administrative law judge shall make a 234
final determination of the total coverage amount within 180 days 235
after the filing of the petition, which must be paid to the 236
policyholder or held in escrow on the policyholder's behalf 237
until exhausted for covered claims The department may designate 238
an entity or person to serve as administrator to carry out any 239
of the provisions of this section and may take this action by 240
means of a written contract or agreement. 241
(9) For purposes of this section, the term "claim" refers 242
to any dispute between an insurer and a policyholder relating to 243
a material issue of fact other than a dispute: 244
(a) With respect to which the insurer has a reasonable 245
basis to suspect fraud; 246
(b) When the insurer has determined, based on agreed-upon 247
facts as to the cause of loss, there is no coverage under the 248
policy; 249
(c) With respect to which the insurer has a reasonable 250

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basis to believe that the policyholder has intentionally made a 251
material misrepresentation of fact which is relevant to the 252
claim, and the entire request for payment of a loss has been 253
denied on the basis of the material misrepresentation; 254
(d) With respect to which the amount in controversy is 255
less than $500, unless the parties agree to mediate a dispute 256
involving a lesser amount; or 257
(e) With respect to a loss that does not comply with s. 258
627.70132. 259
Section 2. Section 627.70151, Florida Statutes, is 260
repealed. 261
Section 3. Section 627.70152, Florida Statutes, is 262
repealed. 263
Section 4. Section 627.70153, Florida Statutes, is 264
repealed. 265
Section 5. Section 627.70154, Florida Statutes, is 266
repealed. 267
Section 6. Paragraph (ll) of subsection (6) of section 268
627.351, Florida Statutes, is amended to read: 269
627.351 Insurance risk apportionment plans.— 270
(6) CITIZENS PROPERTY INSURANCE CORPORATION.— 271
(ll)1. In addition to any other method of alternative 272
dispute resolution authorized by state law, the corporation may 273
adopt policy forms that provide for the resolution of disputes 274
regarding its claim determinations, including disputes regarding 275

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coverage for, or the scope and value of, a claim, in a 276
proceeding before the Division of Administrative Hearings. Any 277
such policies are not subject to s. 627.70154. All proceedings 278
in the Division of Administrative Hearings pursuant to such 279
policies are subject to ss. 57.105 and 768.79 as if filed in the 280
courts of this state and are not considered chapter 120 281
administrative proceedings. Rule 1.442, Florida Rules of Civil 282
Procedure, applies to any offer served pursuant to s. 768.79, 283
except that, notwithstanding any provision in Rule 1.442, 284
Florida Rules of Civil Procedure, to the contrary, an offer 285
shall not be served earlier than 10 days after filing the 286
request for hearing with the Division of Administrative Hearings 287
and shall not be served later than 10 days before the date set 288
for the final hearing. The administrative law judge in such 289
proceedings shall award attorney fees and other relief pursuant 290
to ss. 57.105 and 768.79. The corporation may not seek, and the 291
office may not approve, a maximum hourly rate for attorney fees. 292
2. The corporation may contract with the division to 293
conduct proceedings to resolve disputes regarding its claim 294
determinations as may be provided for in the applicable policies 295
of insurance. This subparagraph expires July 1, 2026. 296
Section 7. Paragraph (a) of subsection (8) of section 297
627.70131, Florida Statutes, is amended to read: 298
627.70131 Insurer's duty to acknowledge communications 299
regarding claims; investigation.— 300

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(8) The requirements of this section are tolled: 301
(a) During the pendency of any proceedings mediation 302
proceeding under s. 627.7015 or any alternative dispute 303
resolution proceeding provided for in the insurance contract. 304
The tolling period ends upon the end of the proceedings 305
mediation or alternative dispute resolution proceeding. 306
Section 8. Subsection (3) of section 627.7074, Florida 307
Statutes, is amended to read: 308
627.7074 Alternative procedure for resolution of disputed 309
sinkhole insurance claims.— 310
(3) If there is coverage available under the policy and 311
the claim was submitted within the timeframe provided in s. 312
627.706(5), following the receipt of the report provided under 313
s. 627.7073 or the denial of a claim for a sinkhole loss, the 314
insurer shall notify the policyholder of his or her right to 315
participate in the neutral evaluation program under this 316
section. Neutral evaluation supersedes the alternative dispute 317
resolution process under s. 627.7015 but does not invalidate the 318
appraisal clause of the insurance policy. The insurer shall 319
provide to the policyholder the consumer information pamphlet 320
prepared by the department pursuant to subsection (1) 321
electronically or by United States mail. 322
Section 9. This act shall take effect July 1, 2026. 323