Florida may soon require mandatory mediation before litigation in all disputed property insurance claims, following the passage of Senate Bill 108 by the state Senate.
Senate Bill 108, sponsored by Senator Polsky, would amend section 627.7015 of the Florida Statutes to make mediation a required step before litigation in property insurance disputes. The bill applies to claims under personal lines and commercial residential insurance policies before the appraisal process and before litigation.
If enacted, the bill would allow mediation to be conducted in person, by teleconference, or by other electronic means if both parties agree. All named insureds, or their representatives, would be required to attend mediation, regardless of format.
The insurer would be responsible for all reasonable costs of mediation, except when the policyholder or their representative fails to appear, in which case the policyholder would pay the costs of rescheduling. If the insurer fails to appear without good cause, it must pay the policyholder’s actual cash expenses incurred in attending. An insurer is considered to have failed to appear if its representative lacks authority to settle the full value of the claim.
The Department of Financial Services would be required to adopt rules for the mediation program and could adopt emergency rules. The bill also allows the department to designate an entity or person to serve as administrator. It appropriates $1 million from the Insurance Regulatory Trust Fund for administration.
All statements and documents produced during mediation would be considered settlement negotiations in anticipation of litigation. Mediators would be deemed agents of the department and provided immunity from suit. Within 10 days after mediation is invoked, the policyholder would be required to provide the insurer with any information and supporting documents that serve as the basis for the claim.
Mediation would be nonbinding unless a written settlement is reached. If the policyholder is not represented by an attorney or public adjuster, they would have three business days to rescind the settlement, unless they have cashed or deposited any check or draft received as a result of the mediation. If not rescinded, the settlement would be binding and act as a release of all specific claims presented in that mediation conference.
The bill does not apply to commercial coverages, private passenger motor vehicle insurance, or disputes relating to liability coverages in property insurance policies. Claims are excluded from mediation if there is suspected fraud, material misrepresentation, or if the amount in controversy is less than $500, unless both parties agree to mediate.
Senate Bill 108 specifies an effective date of Jan. 1, 2027, with certain provisions effective July 1, 2026. As of now, the bill is enrolled but not yet a law.
