Bill > S0224

This bill mandates a comprehensive reform of property insurance claim dispute resolution in Florida by requiring mediation as a mandatory step before litigation, rather than treating it as an optional alternative dispute resolution method. The bill stipulates that all named insureds or their representatives must personally attend mediation, which can be conducted in-person or electronically if both parties agree. Under the new provisions, the policyholder must provide the insurer with all supporting documents and information within 10 days of invoking mediation, and the Department of Financial Services is now required (instead of merely authorized) to adopt rules governing the mediation process. The bill clarifies the definition of a "claim" by specifying certain types of disputes that are not eligible for mediation, such as claims involving suspected fraud or those where coverage is clearly not applicable. For unrepresented policyholders, the bill preserves a 3-business-day window to rescind a settlement after mediation. To support implementation, the bill appropriates $1 million from the Insurance Regulatory Trust Fund to the Department of Financial Services, with the changes set to take effect on January 1, 2026. The overall goal is to create a more structured, fair, and efficient process for resolving property insurance claim disputes before resorting to costly and time-consuming litigation.

https://www.flsenate.gov/Session/Bill/2025/224