A Florida resident’s insurance claim for nearly $100,000 in vandalism was twice denied by Citizens Insurance. The damage includes stolen appliances, torn-up floors, and debris. Due to insurance reform laws, the resident is forced into mediation, as he cannot take the company to court. Critics are concerned about the new arbitration process (1).

Critics are concerned about the new arbitration process in Florida, where lawsuits against insurers are routed to the Division of Administrative Hearings. ProPublica found that Citizens won more than 90% of disputes taken to arbitration, compared to 55% in circuit court trials over the past five years. Critics question the neutrality of arbitrators (2).

Despite concerns, Citizens CEO defended the mediation process, stating that claims undergo a thorough review before reaching a hearing. After criticism, Citizens agreed to review the denied claim. Homeowners are advised to understand their insurance policy and rights, document issues thoroughly, and consider hiring a public adjuster for help with denied claims (3).

Homeowners should review their insurance policy, understand what is covered, and document any issues thoroughly for a successful claim. If a claim is denied, homeowners can request a reevaluation, file an appeal, or seek mediation through the state’s insurance department. Hiring a public adjuster may also help in resolving disputes over denied claims (4).

Read more at Yahoo Finance: Florida landlord says $100K vandalism insurance claim denied despite coverage. And new state law is hampering his fight