If you live in Florida and have Citizens Property Insurance Corporation, this update could be important for you.
A judge just made a big decision: Citizen Property might be doing something unconstitutional when it comes to handling claims disputes with their policyholders (that’s people like you who have property insurance with them). For a while now, Citizens has been sending disagreements to a special place called DOAH instead of letting people go to court.
What Is DOAH?
DOAH stands for the Division of Administrative Hearings. It’s a special place where certain legal problems are handled. It’s kind of like a courtroom, but not exactly the same. It’s mostly for administrative law issues, not issues of breach of contract between a policyholder and their insurance carrier.
Instead of having a jury and the full court process, DOAH uses something called an administrative law judge. These judges make decisions on their own, and the rules are a bit different. That can make it harder for everyday people to fight back against big companies like Citizens. That’s why sending cases to DOAH instead of a real court might not be fair and raise constitutional issues.
This arbitration process raises serious concerns, especially when it replaces a full judicial review in a traditional courtroom.
So What’s the Problem?
Florida’s Constitution says everyone has the right to a fair trial in court. But if Citizens Property Insurance Corporation forces you to go to DOAH instead, you might lose that right. That’s what the judge is worried about.
The judge said this setup might be unconstitutional. That means it could go against the most important rules in our state’s laws. The judge didn’t just point it out, she officially stopped Citizens from forcing people into this kind of process, at least for now.
Why Does This Matter?
When you have a serious problem with your insurance company—like they’re denying your roof damage claim or underpaying you—you should be able to file a lawsuit and take your case to court. That’s where a judge and jury can decide what’s fair.
But Citizens Property Insurance Corporation was trying to skip that step and send people to DOAH instead. And now, the whole law that allowed them to do that could be challenged. If the courts decide that the law is unconstitutional, it would prevent Citizens Property Insurance Corporation from putting DOAH endorsements in their future policies.
Citizens, DOAH Arbitration, and What It Means for Policyholders
This ruling is especially important for Florida policyholders—the people who pay for property insurance coverage and expect help when something goes wrong. When Citizens used DOAH arbitration, it made it harder for Florida policyholders to fully use their legal rights.
Why? Because the arbitration process at DOAH isn’t the same as going to court. It limits what policyholders can do, and it may tip the scales in favor of the insurance company. This means people might not get the money they need to fix their homes or recover from storm damage.
Now, thanks to the judge’s ruling and pending judicial review, this system is being questioned. If the courts find that this law is unfair or unconstitutional, it could restore the right of Florida policyholders to take their cases to real courtrooms with a jury and full legal protections.
This could lead to better outcomes for homeowners across Florida who’ve been treated unfairly during Florida litigation with their insurance providers.
What’s Next?
This is just the beginning. The case isn’t over yet, but for now, the court has paused Citizens’ use of DOAH arbitration. More legal battles are likely coming, and they could lead to big changes that help protect Florida policyholders.
Have a Dispute with Your Insurance Company?
At Vargas Gonzalez Delombard, LLP, we fight for policyholders who’ve been denied, delayed, or underpaid by their insurance companies. Whether you’re dealing with Citizens Property Insurance Corporation or any other insurer, you don’t have to face them alone. Visit our website for a free consultation and let our experienced legal team help you through the arbitration process, Florida litigation, or any lawsuit involving your property insurance.
