What Florida’s Crisis Means for Policyholders
This story is based on reporting by Allaire Conte for Yahoo News, citing investigations by ProPublica and the Sun Sentinel.
A Growing Crisis in Florida Coverage
Florida’s ongoing insurance crisis has left more than half a million homeowners relying on Citizens Property Insurance Corporation, the state’s insurer of last resort. As private carriers withdraw and premiums skyrocket, Citizens has become the only option for many. But troubling new data shows that when policyholders challenge property insurance claim denials, the deck is stacked against them.
According to ProPublica and the Sun Sentinel, Citizens wins more than 90% of cases brought before the Division of Administrative Hearings (DOAH), compared to just 55% when disputes go through circuit court. For many homeowners, that difference determines whether they can afford to rebuild—or are left with devastating out-of-pocket costs.
A Legal Process Few Homeowners Chose
In 2023, Florida lawmakers passed legislation that gave Citizens the power to reroute insurance disputes from traditional courts into DOAH arbitration. Supporters argued the system would be faster and cheaper. But in practice, it removes fundamental protections: no jury trial, limited discovery, and restrictions on presenting evidence.
Critics say it’s no coincidence that Citizens, which lobbied for the change, pays the salaries of the administrative judges who oversee these hearings. Rep. Hillary Cassel, a former insurance attorney, called it a direct violation of policyholders’ right to a fair trial.
The Numbers Behind the Crisis
The disparities are stark:
- Win Rate: Citizens prevails in over 90% of DOAH hearings, compared with about 55% in circuit court.
- Settlements: Nearly 80% of cases never reach a final ruling, with half of the settlements paying out $500 or less.
- Scope: Citizens is on track to send thousands of disputes through DOAH annually, funding the program with more than $19 million through 2027.
Homeowners often feel forced to accept whatever settlement is offered—sometimes just pennies on the dollar—because the system makes it too risky to continue fighting.
The Human Cost
Behind the statistics are real families.
- Peter and Linda Kilfoil of Fort Lauderdale discovered water damage in their kitchen. Their claim was denied as “long-term leakage,” even after they found the hidden pipe leak. When their case went to DOAH, the judge barred them from deposing a Citizens adjuster. With Peter battling cancer, the couple settled for just $500 on a $40,000 claim. Peter passed away six months later.
- Jeffery McShane, a former Navy pilot, faced $200,000 in repairs after a burst pipe and roof leak caused extensive mold damage. Citizens denied the claim. Knowing the odds, he settled for $5,000.
These stories are not rare—they illustrate how limited legal recourse can devastate homeowners already struggling with losses.
Signs of Pushback
There may be a change on the horizon. After Hurricane Milton in 2024, homeowner Martin Alvarez challenged Citizens’ use of DOAH. In August 2025, Hillsborough County Judge Melissa Polo issued an injunction halting the arbitration process statewide. She called DOAH “structurally biased” and noted it deprived policyholders of neutral discovery, motion practice, and judicial review.
Still, Citizens continues to defend the system, framing it as efficient and cost-saving. CEO Tim Cerio argues the process ensures solvency for the insurer and points to statistics showing some cases result in reversed decisions.
What Homeowners Can Do
For homeowners, this environment is daunting—but not hopeless. Here are key steps to take:
- Review your policy carefully—know whether your coverage is based on replacement cost value (RCV) or actual cash value (ACV).
- Document everything—from roof damage and drywall issues to plumbing leaks or mold growth.
- Seek representation—experienced insurance attorneys can help level the playing field against large carriers.
Act quickly—if you’ve received a claim denial or non-renewal, timelines matter under Florida’s statute of limitations (SOL).
How Chad T. Wilson Law Firm Can Help
At the Chad T. Wilson Law Firm, we fight for policyholders who have been denied, underpaid, or forced into unfair processes. Whether your dispute involves hail damage, water damage, fire and smoke, windstorm claims, or commercial property losses, we’re here to stand up for your rights.
Contact us today for a free consultation. Your recovery is our mission.
This blog is based on reporting by Allaire Conte for Yahoo News, with additional context from ProPublica and the Sun Sentinel.
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Do not lose hope if you have filed an insurance claim and were denied or underpaid. Let the Chad T. Wilson Law Firm get justice for you.
