Reports Indicate Citizens Is Actively Expanding Its Mandatory Arbitration System

Citizens Property Insurance has an extremely controversial mandatory arbitration system, and many lawmakers in Florida want to end this process once and for all. In the face of this pushback, Citizens seems to be actively expanding its arbitration process rather than taking a more conservative approach. What does this mean for the average homeowner, and how will it affect your property insurance claim in Fort Lauderdale?

Citizens “Moving in the Opposite Direction”

In February of 2026, Fox 29 WFLX reported that Citizens was taking steps to expand its controversial arbitration process. The report indicated that journalists had obtained “new documents” that suggest Citizens is pushing an ever greater number of its policyholders toward the arbitration system, seemingly signaling complete disregard for the hesitancy Florida lawmakers have expressed about the process.

Mandatory arbitration is something that many Citizens policyholders are all too familiar with. Critics say that the system is rigged and riddled with conflicts of interest. Citizens enjoys a win rate of well over 90% for appealed claims in arbitration, and some lawyers have told homeowners that their chances of winning during this process are “almost zero.” Some say the win rate for Citizens is actually closer to 99%.

Homeowners also have to contend with the troubling conflicts of interest among the arbitrators (judges) who oversee this process. These arbitrators are paid by the very insurance companies they are supposed to be holding accountable, and their salaries are extremely attractive. Some reports indicate that they earn around $250,000 per year. One has to wonder why anyone would jeopardize such a handsome salary by ruling against their employer.

Citizens Appears to Be Preparing for Legal Changes

The WFLX report indicates that Citizens is preparing for the passing of a new bill that would give policyholders the option to choose between arbitration and jury trials. The insurer of last resort is allegedly attempting to introduce new language into its policies that would force appraisal disputes into arbitration. This would effectively allow Citizens to divert more claims to arbitration even in the absence of a denial. With this strategy, Citizens would undercut the coming legal changes, making them less effective.

If this reporting is accurate, it underscores major conflicts within the Florida government. As an insurer of last resort, Citizens is essentially part of the government. The fact that it is pushing back against lawmakers who are trying to protect homeowners indicates that these two different aspects of Florida’s government are moving in completely opposite directions.  

Contact Our Fort Lauderdale Property Insurance Lawyers Today

At Fuxa & Tyler, our legal team is made up of a diverse combination of attorneys who are well-positioned to protect the legal rights and financial interests of policyholders. If your property insurance claim was denied, we can help. For a free consultation, please call us today at (954) 990-5251. With an office in Sunrise, we represent policyholders in Broward County and throughout the state of Florida.

Source:

 wflx.com/2026/02/18/is-that-legal-citizens-property-insurance-expands-arbitration-system-despite-legislative-pushback/