Florida homeowners are facing significant challenges with denied insurance claims, as recent data shows that more than 90 percent of disputes with the state-backed insurer Citizens Property Insurance Corporation have been decided against policyholders since changes to the dispute process in 2023.

Florida Homeowners and Denied Insurance Claims

The issue of denied insurance claims in Florida has become a central concern for homeowners, particularly those insured by Citizens Property Insurance Corporation, the state’s insurer of last resort. According to official sources, a legislative shift in 2023 has dramatically altered the way disputes are handled, resulting in a high rate of decisions against homeowners. As these changes have unfolded, it’s important to note that Florida now ranks as the most expensive state for homeowners insurance, adding further strain for policyholders.

Background: Changes to Florida Home Insurance Dispute Process

In spring 2023, Florida’s home insurance market was under stress due to increased risk from natural disasters, litigation, and fraud. Lawmakers responded with new tort reform measures. One major change allowed Citizens to reroute claim disputes from traditional courts to the Division of Administrative Hearings (DOAH). This move was intended to reduce court backlogs and streamline the resolution process for insurance claims.

Under the new system, DOAH judges—whose salaries are paid by Citizens—act as arbitrators in these disputes. This administrative process replaced the option for a trial by jury for many policyholders.

Citizens’ Growing Role in Florida Insurance

Between 2020 and 2023, Citizens expanded rapidly as private insurers withdrew from the Florida market. At its peak in 2023, Citizens managed over 1 million policies, according to company data. Lawmakers and insurance experts expressed concern about the growing reliance on the state-backed insurer. Notably, some property insurance companies in Florida have seen profits surge even as homeowners face mounting challenges.

Dispute Outcomes: Data on Denied Claims

According to a preliminary report from ProPublica and the South Florida Sun Sentinel, Citizens has referred more than 1,500 disputes to DOAH since February 2024. As of July 21, DOAH ruled in favor of Citizens in over 90 percent of those cases.

By comparison, Citizens won about 55 percent of similar cases in traditional courts over the previous five years, according to ProPublica. The data suggest that the administrative process results in a much higher rate of denied claims for homeowners.

Settlement Amounts and Process

Of the cases resolved between March 2024 and July 7, 2025, 78 percent ended in a settlement, according to data released by Citizens and reported by ProPublica. Half of all settlements resulted in payouts of $500 or less to the policyholder. About 28 percent of cases, according to Citizens spokesperson Michael Peltier, were settled for an average of $30,000. These amounts are generally lower than those reached in settlements through the court system. However, recent developments such as the proposed historic rate cut for Florida Peninsula Insurance homeowners may signal potential shifts in the insurance landscape.

Peltier defended the process, stating to ProPublica that DOAH provides a “well-established, impartial, and efficient process for policyholders, who no longer must wait nearly two years, on average, for a resolution of their claim.” He also noted that only about 1 percent of all disputes are rerouted to DOAH.

Criticism and Concerns from Homeowners and Advocates

Despite assurances from Citizens, many homeowners and consumer advocates have raised concerns about the fairness of the administrative process. Mekedas Belayneh, a policy advocate at Public Citizen, told Newsweek that “any system where an insurer wins over 90 percent of the time is a system that ignores the well-being of homeowners.” She described the forced arbitration process as “highly suspect.”

Belayneh argued that the new system strips homeowners of their right to a fair trial and gives Citizens too much control over the outcome of disputes. She called for an investigation into the forced arbitration system by Florida’s insurance commissioner, especially as Citizens continues to absorb more policies from private insurers leaving the market.

Calls for Reform

Lizzy Price, spokesperson for the Insurance Fairness Project, also criticized the process. She stated that “policyholders consistently pay into insurance plans, expecting their claims to be honored during emergencies. Legislators must rectify this flawed system and address the root causes of the insurance crisis, including climate change.”

Both advocates emphasized the need for legislative action to restore consumer protections for Florida homeowners.

Current Status of Citizens and Future Projections

Despite recent efforts to reduce the number of policies, Citizens remains the largest home insurer in Florida, with 769,294 active policies as of the latest available data. According to a funding proposal from Citizens’ board, the company plans to send more than 3,800 cases per year to DOAH in the coming years.

Officials have not indicated any immediate plans to reverse the administrative hearing process. The situation remains under review by consumer groups and lawmakers.

Frequently Asked Questions About Florida Homeowners Denied Insurance Claims

What is causing so many Florida homeowners to have their insurance claims denied?

Many Florida homeowners are seeing their insurance claims denied due to a new process that sends disputes to the Division of Administrative Hearings (DOAH) instead of traditional courts. According to official reports, DOAH has ruled in favor of Citizens in over 90 percent of cases since 2024.

How much do most homeowners receive in settlements from Citizens?

According to data reported by ProPublica, half of all settlements in DOAH cases resulted in payouts of $500 or less. About 28 percent of cases were settled for an average of $30,000.

Are there options for Florida homeowners to appeal denied insurance claims?

Currently, most disputes rerouted to DOAH cannot proceed to a jury trial. Homeowners may still seek legal advice or explore other remedies, but the administrative process limits traditional court appeals, according to official sources.

Can you avoid the DOAH process when disputing a claim with Citizens?

Under current Florida law, Citizens can require disputes to be resolved through DOAH instead of the courts. This process applies to a portion of claims, as reported by Citizens representatives.

Where are most denied insurance claims happening in Florida?

The denied claims and dispute process affect homeowners statewide, especially those insured by Citizens. The issue is not limited to a specific city or region but is a concern across Florida.

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