Florida Landlord Struggles With Denied Property Insurance Claim
Landlords often have to file property insurance claims in Fort Lauderdale. As experienced landlords know, tenants can be extremely destructive, potentially causing damage that costs hundreds of thousands of dollars to repair. This is why landlord insurance is so important. But what happens if your insurer denies your claim? A recent case in Florida illustrates how frustrating this can be.
Florida Landlord Forced Into Arbitration After Numerous Denied Claims
In January of 2026, MSN reported that a Florida landlord had been forced into mandatory arbitration after filing a property insurance claim. This individual is facing $100,000 in repair costs after his tenants completely trashed his rental unit. While the man assumed that his insurer would have his back, this assumption turned out to be incorrect. After receiving two denied claims, he now has no other choice but to approach mandatory arbitration.
According to the landlord, the insurer is trying to argue that the tenant-related damage was actually a renovation that the landlord attempted but never finished. The landlord claims this is completely false, and that his property was vandalized by his former tenants. These tenants allegedly stole or destroyed the home’s appliances, tore up the floors, and left debris scattered across the property.
This case draws attention to the controversial mandatory arbitration process that is now protected under Florida law. Many property owners and critics believe that the mandatory arbitration process is rigged, and it’s not hard to see why. The arbitrators who oversee these “mini trials” receive their salaries from the very insurance companies they are supposed to be policing. The conflict of interest is easy to see.
The results of these mandatory arbitration sessions speak for themselves. Property owners have just a 10% chance of winning favorable outcomes, and the insurance companies enjoy a 90% win rate. When insurance companies are forced to go through a traditional litigation process in a courtroom, their success rate drops to just 55%.
Florida Lawmakers Claim That Things Are Getting Better for Property Owners
Within the past few months, Florida lawmakers have been extremely vocal about how much better things are getting for property owners. Recently, the Governor proclaimed that insurance premiums were going to decrease significantly in the near future.
But what good are lower premiums if the insurance company is just going to deny your claim anyway? What are homeowners receiving in exchange for their premiums, other than a rigged arbitration process?
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:
msn.com/en-us/money/insurance/florida-landlord-says-insurance-company-denied-a-100k-vandalism-claim-even-though-he-has-coverage-and-a-new-state-law-is-hampering-his-fight/ar-AA1U3mj5?ocid=finance-verthp-feeds
nbcmiami.com/video/nbc-6-news/florida-gov-desantis-announces-decrease-in-homeowners-insurance-premiums/3747940/