Citizens Bill Dies in Florida, Forcing Homeowners to Continue With Arbitration

One of the most controversial aspects of Florida’s insurance industry is forced arbitration, something that numerous lawmakers in the Sunshine State have sought to end. In May of 2026, this shred of hope died with a bill that could have ended mandatory arbitration for Citizens policyholders. What does this mean for future denied insurance claims in Fort Lauderdale?

Bill Dies in Senate Rules Committee

In May of 2026, WPTV reported that a bill that would have ended forced arbitration for hundreds of thousands of policyholders had died in the rules committee of the Florida Senate. Many lawmakers agreed that forced arbitration was not in the public’s best interests, especially given that the arbitrators involved in this process received their salaries from the same insurer they were supposed to be regulating.

Homeowners Prevented From Dropping Their Claims

Many homeowners in the midst of appealing their denied claims with Citizens were hoping that this bill would pass. Some of these individuals believed that if the law passed, they would stand a better chance of experiencing some degree of justice, and so they kept pursuing their claims until the last possible moment. Now, WPTV reports that many of them are unable to drop their appeals.

This is a detail that many Floridians may not have been aware of, even if the mandatory arbitration issue was well-known. The fact that homeowners cannot walk away from this arbitration process means that they now have no other choice but to see it through. And with the cards stacked against them, this will also likely lead to monetary penalties.

While many people are now aware that Citizens maintains a winning record of well over 90 percent (some would say it’s closer to 99 percent) in arbitration, the fact that the loser pays the legal fees is something that often slips under the radar. With no way to pull out, some of these homeowners are not on the hook for $50,000 in attorney fees and another $10,000 in arbitration costs. Citizens doesn’t have to pay anything when it wins, which is almost every time.

In a normal court case, each party always has the option to withdraw and express their intent to “walk away.” The fact that homeowners are being forced to pursue insurance claims against their will adds another dimension to this constitutional argument. Not only do homeowners lack access to due process in Florida, but they also find themselves being forced into claims that they have no desire to pursue.

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.

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