Resolution of Disputed Property Insurance Claims

Florida Senate
-
2026

SB 108

By
Senator Polsky

30-00313-26 2026108__
1 A bill to be entitled
2 An act relating to the resolution of disputed property
3 insurance claims; amending s. 627.7015, F.S.;
4 requiring, rather than authorizing, parties in a
5 property insurance claim dispute to participate in
6 mediation; providing that mediation is a condition
7 precedent to commencing litigation; deleting
8 provisions relating to the eligibility of claims for
9 mediation; providing that the parties may mutually
10 agree to conduct the mediation by teleconference or
11 other electronic means; requiring all insureds, or
12 their representatives, to attend the mediation;
13 revising and specifying duties relating to the parties
14 bearing certain costs of mediation; requiring, rather
15 than authorizing, the Department of Financial Services
16 to adopt certain rules; authorizing the department to
17 adopt certain emergency rules; requiring the
18 policyholder to provide the insurer with any
19 information and certain documents within a specified
20 timeframe after mediation is invoked; revising
21 conditions under which a policyholder has a certain
22 timeframe to rescind a settlement; revising the
23 definition of the term “claim”; providing and revising
24 construction; amending s. 627.7074, F.S.; conforming a
25 provision to changes made by the act; providing an
26 appropriation; providing effective dates.
27
28 Be It Enacted by the Legislature of the State of Florida:
29
30 Section 1. Section 627.7015, Florida Statutes, is amended
31 to read:
32 627.7015
Mandatory mediation

Alternative procedure
for
33 resolution of disputed property insurance claims.—
34 (1) This section sets forth a nonadversarial
alternative

35 dispute resolution procedure for a mediated claim resolution
36 conference prompted by the need for effective, fair, and timely
37 handling of property insurance claims. There is a particular
38 need for an informal, nonthreatening forum for helping parties
39
who elect this
procedure to
resolve their claims disputes
40 because most homeowner and commercial residential insurance
41 policies obligate policyholders to participate in a potentially
42 expensive and time-consuming adversarial appraisal process
43 before litigation. The procedure set forth in this section is
44 designed to bring the parties together for a mediated claims
45 settlement conference without any of the trappings or drawbacks
46 of an adversarial process. Before
participating in

resorting to

47 these procedures, policyholders and insurers are encouraged to
48 resolve claims as quickly and fairly as possible. This section
49
applies

is available with respect
to claims under personal lines
50 and commercial residential policies before commencing the
51 appraisal process
and is a condition precedent to
, or before

52 commencing litigation.
Mediation may be requested only by the

53
policyholder, as a first-party claimant, a third-party, as an

54
assignee of the policy benefits, or the insurer.
However,
An
55 insurer is not required to participate in any mediation
56 requested by a third-party assignee of the policy benefits.
If

57
requested by the policyholder,
Participation by legal counsel is
58 permitted. Mediation under this section is also
required of

59
available to
litigants referred to the department by a county
60 court or circuit court. This section does not apply to
61 commercial coverages, to private passenger motor vehicle
62 insurance coverages, or to disputes relating to liability
63 coverages in policies of property insurance.
64 (2) At the time of issuance and renewal of a policy or at
65 the time a first-party claim within the scope of this section is
66 filed by the policyholder, the insurer shall notify the
67 policyholder of
its right to participate in
the
mandatory

68 mediation program under this section.
A claim becomes eligible

69
for mediation after the insurer complies with s. 627.70131(7) or

70
elects to reinspect pursuant to s. 627.70152(4)(a)3. If the

71
insurer has not complied with s. 627.70131(7) or elected to

72
reinspect pursuant to s. 627.70152(4)(a)3. within 90 days after

73
notice of the loss, the insurer may not require mediation under

74
this section. This subsection does not impair the right of an

75
insurance company to request mediation after a determination of

76
coverage pursuant to this section or require appraisal or

77
another method of alternative dispute resolution pursuant to s.

78
627.70152(4)(b).
The department shall prepare a consumer
79 information pamphlet for distribution to persons participating
80 in mediation.
81 (3)
If the parties mutually agree, mediation may be

82
conducted by teleconference or other electronic means in lieu of

83
appearing in person. All named insureds, or their

84
representatives, must attend the mediation, regardless of how it

85
is conducted.
The costs of mediation must be reasonable, and the
86 insurer must bear all of the cost of conducting mediation
87 conferences, except as otherwise provided in this section. If a
88
named insured or his or her representative

policyholder
fails to
89 appear at the conference,
thus preventing the mediation from

90
proceeding,
the conference must be rescheduled upon the
91 policyholder’s payment of the costs of a rescheduled conference.
92 If the insurer fails to appear at the conference, the insurer
93 must pay the policyholder’s actual cash expenses incurred in
94 attending the conference if the insurer’s failure to attend was
95 not due to a good cause acceptable to the department. An insurer
96
is

will be
deemed to have failed to appear if the insurer’s
97 representative lacks authority to settle the full value of the
98 claim. The insurer shall incur an additional fee for a
99 rescheduled conference necessitated by the insurer’s failure to
100 appear at a scheduled conference. The fees assessed by the
101 department must include a charge necessary to defray the
102 expenses of the department related to its duties under this
103 section and must be deposited in the Insurance Regulatory Trust
104 Fund. The department may suspend the insurer’s authority to
105 appoint licensees if the insurer does not timely pay the
106 required fees.
If a party elects to request an expert or a

107
representative to attend the mediation, that party must bear any

108
costs for the attendance of the expert or representative.

109 (4) The department shall adopt by rule a property insurance
110 mediation program to be administered by the department or its
111 designee. The department
shall

may
also adopt special rules
that

112
which
are applicable in cases of an emergency within
this

the

113 state
, including emergency rules as necessary to establish

114
physical addresses for the mediation program in areas affected

115
by natural disasters
. The rules shall be modeled after practices
116 and procedures set forth in mediation rules of procedure adopted
117 by the Supreme Court. The rules shall provide for
all of the

118
following
:
119 (a) Reasonable
requirements

requirement
for processing and
120 scheduling of requests for mediation.
121 (b) Qualifications
for persons who apply to be mediators
,
122
grounds for
denial of
applications

application
,
revocation of

123
the department’s approval of mediators, and grounds for

124 suspension
, revocation of approval,
and other penalties for
125 mediators
,
as provided in s. 627.745 and the Florida Rules for
126 Certified and Court-Appointed Mediators.
127 (c) Provisions governing who may attend mediation
128 conferences.
129 (d) Selection of mediators.
130 (e) Criteria for the conduct of mediation conferences.
131 (f) Right to legal counsel.
132 (5)
(a)
All statements made and documents produced at a
133 mediation conference shall be deemed to be settlement
134 negotiations in anticipation of litigation within the scope of
135 s. 90.408. All parties to the mediation must negotiate in good
136 faith and must have the authority to immediately settle the
137 claim. Mediators are deemed to be agents of the department and
138 shall have the immunity from suit provided in s. 44.107.
139
(b)

Within 10 days after mediation is invoked, the

140
policyholder must provide to the insurer any information and

141
supporting documents that serve as the basis for the claim.

142 (6)(a) Mediation is nonbinding; however, if a written
143 settlement is reached
and the policyholder is not represented by

144
an attorney or a public adjuster
, the policyholder has 3
145 business days within which the policyholder may rescind the
146 settlement unless the policyholder has cashed or deposited any
147 check or draft disbursed to the policyholder for the disputed
148 matters as a result of the conference. If a settlement agreement
149 is reached and is not rescinded, it is binding and acts as a
150 release of all specific claims that were presented in that
151 mediation conference.
152 (b) At the conclusion of the mediation, the mediator shall
153 provide a written report of the results of mediation, including
154 any settlement amount, to the insurer, the policyholder, and the
155 policyholder’s representative if the policyholder is represented
156 at the mediation.
157 (7) If the insurer fails to comply with subsection (2) by
158 failing to notify a policyholder of
its right to participate in

159 the
mandatory
mediation program under this section or if
the

160
insurer requests the mediation, and
the mediation results are
161 rejected by either party, the policyholder is not required to
162 submit to or participate in any contractual loss appraisal
163 process of the property loss damage as a precondition to legal
164 action for breach of contract against the insurer for its
165 failure to pay the policyholder’s claims covered by the policy.
166 (8) The department may designate an entity or person to
167 serve as administrator to carry out any of the provisions of
168 this section and may take this action by means of a written
169 contract or agreement.
170 (9) For purposes of this section, the term “claim” refers
171 to any dispute between an insurer and a policyholder relating to
172 a material issue of fact other than a dispute:
173 (a) With respect to which the insurer has a reasonable
174 basis to suspect fraud;
175 (b) When
the insurer has determined
, based on agreed-upon

176
facts as to the cause of loss,
there is no coverage under the
177 policy;
178 (c) With respect to which the insurer has a reasonable
179 basis to believe that the policyholder has intentionally made a
180 material misrepresentation of fact which is relevant to the
181 claim, and the entire request for payment of a loss has been
182 denied on the basis of the material misrepresentation;
183 (d) With respect to which the amount in controversy is less
184 than $500, unless the parties agree to mediate a dispute
185 involving a lesser amount; or
186 (e) With respect to a loss that does not comply with s.
187 627.70132.
188
(10)

Participation in mediation under this section before

189
the policyholder’s filing of a notice under s. 627.70152 does

190
not prohibit or waive an insurer’s right to invoke and

191
participate in mediation under this section in response to the

192
notice.

193 Section 2. Subsection (3) of section 627.7074, Florida
194 Statutes, is amended to read:
195 627.7074 Alternative procedure for resolution of disputed
196 sinkhole insurance claims.—
197 (3) If there is coverage available under the policy and the
198 claim was submitted within the timeframe provided in s.
199 627.706(5), following the receipt of the report provided under
200 s. 627.7073 or the denial of a claim for a sinkhole loss, the
201 insurer shall notify the policyholder of his or her right to
202 participate in the neutral evaluation program under this
203 section. Neutral evaluation supersedes the
mediation

alternative

204
dispute resolution
process under s. 627.7015 but does not
205 invalidate the appraisal clause of the insurance policy. The
206 insurer shall provide to the policyholder the consumer
207 information pamphlet prepared by the department pursuant to
208 subsection (1) electronically or by United States mail.
209 Section 3.
Effective July 1, 202
6
, f
or the 2026-2027 fiscal

210
year, the sum of $1 million in recurring funds is appropriated

211
from the Insurance Regulatory Trust Fund to the Department of

212
Financial Services for the purpose of administering the

213
amendment made by this act
to s. 627.7015, Florida Statutes.

214 Section 4. Except as otherwise expressly provided in this
215 act and except for this section, which shall take effect July 1,
216 2026, this act shall take effect January 1, 2027.