Lawmakers Question the Legality of Forced Arbitration in Florida’s Insurance Industry

Mandatory arbitration continues to be a key issue in the Florida insurance industry. While some believe that this process is unfair (or even unconstitutional), insurers such as Citizens have been allowed to continue forcing policyholders to settle their claims outside of court. A new report suggests that Florida lawmakers have serious questions about this practice. If you are having issues with mandatory arbitration or any other aspect of a claim, consider speaking with a property insurance lawyer in Fort Lauderdale.

Florida Lawmaker Called Mandatory Arbitration “Wrong”

In January of 2026, multiple sources reported that a lawmaker in Florida had questioned mandatory arbitration practices enforced by a major insurer in Florida. WPTV states that this lawmaker specifically raised concerns about the unconstitutionality of such practices. Apparently, this lawmaker questioned mandatory arbitration years ago during an email exchange with representatives from the state’s insurer of last resort.

This has become an extremely controversial issue after the arbitration clause was added by the insurer. Media sources have exposed serious concerns with this process, including the fact that the insurer pays the salaries of the “independent” judges who oversee the arbitration process. These judges apparently receive $250,000 per year to serve as arbitrators, and some would argue that this represents a blatant conflict of interest.

The results speak for themselves, as policyholders lose these arbitrations more than 90% of the time. If a judge is receiving $250,000 a year, the implication is that they will lose this impressive salary if they start to rule against the insurer too often. Not many people would give up such a comfortable salary.

This debate has been ongoing, and it’s not clear whether courts will eventually conclude that these mandatory arbitration sessions should end. The constitutional argument is quite compelling, as the Constitution guarantees people access to fair trials. According to the Florida Bar, a House panel has advanced a bill to end mandatory arbitration for policyholders in Florida. However, there is no guarantee this bill will pass.

Some Homeowners Are Less Than Enthusiastic About Recent Changes

This news comes at a time when other lawmakers in Florida are celebrating improvements to the insurance industry. While the government has proudly announced major premium cuts for Citizens policyholders, many homeowners are simultaneously being transferred to private insurers against their will. This prevents those homeowners from benefiting from premium reductions.

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.

Sources: 

wptv.com/wptv-investigates/emails-reveal-lawmaker-questioned-citizens-arbitration-authority-before-rollout

wflx.com/video/2026/01/21/emails-reveal-lawmaker-questioned-citizens-property-insurance/

floridabar.org/the-florida-bar-news/house-panel-advances-bill-ending-mandatory-arbitration-for-citizens-policyholders/