Insurer of Last Resort Blocked from Preventing Property Insurance Lawsuits in Florida
The insurer of last resort in Florida is Citizens, and many homeowners in Fort Lauderdale are extremely familiar with this state-owned company. The insurer of last resort is required to offer homeowners insurance, even if they have been dropped by other private insurers. That being said, the fact that Citizens is a state-owned company does not mean it automatically treats policyholders well. A recent case shows that Citizens can face legal challenges, just like any other insurer. If you believe that the insurer of last resort is violating your rights, consider speaking with a Fort Lauderdale property insurance lawyer.
Citizens Banned From Forcing Arbitration
In August of 2025, multiple sources reported that a Florida circuit judge had blocked Citizens from sending claims to arbitration. For those who don’t know, arbitration is a form of alternative dispute resolution (ADR). It occurs outside of court, and it may allow corporations like Citizens to exert greater control over the outcomes of decisions. Arbitrators are supposed to be neutral third parties, but they are not the same as judges. One similarity between judges and arbitrators is that their decisions are legally binding.
You might argue that arbitration offers homeowners all of the downsides of trial and none of the benefits. One of the key benefits of a trial is the ability to have your case reviewed by a jury of your peers. Most people are sympathetic to the struggles of average homeowners, and this is exactly what insurers like Citizens are afraid of.
Unfortunately, many homeowners agree to arbitration when they sign their contracts with insurers. In other words, they are contractually obliged to settle disputes through arbitration rather than going to court. But how enforceable are these arbitration clauses?
According to the judge who made the recent decision, these clauses are not as strong as some might think. A group of homeowners challenged Citizens in this case, arguing that mandatory arbitration violated public policy.
Appeal by Citizens Immediately Cancels Out Victory
Citizens immediately appealed the decision, and this action suspended the judge’s order. In other words, mandatory arbitration is still alive and well for Citizens policyholders as of this writing. However, the outcome of the appeal could have considerable implications for the entire state of Florida. An upcoming hearing could settle this matter once and for all.
Citizens says that its arbitration process saves thousands of dollars in legal fees, but critics argue that the process lacks transparency and independence.
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:
sun-sentinel.com/2025/08/02/judge-finds-that-citizens-insurances-use-of-arbitration-likely-violates-policyholders-right-to-fair-trial/
subscriber.politicopro.com/article/2025/08/judge-blocks-citizens-from-steering-claims-disputes-away-from-court-00489470