Florida House Passes HB 863: Citizens Policyholders Would Choose Whether to Arbitrate Claims at DOAH

On February 4, 2026, the Florida House passed House Bill 863 by a vote of 105 to 3 ¹. The bill, sponsored by Representative Benarroch ³, would change how claim disputes between Citizens Property Insurance Corporation and its policyholders are resolved by making arbitration before the Division of Administrative Hearings (DOAH) a choice for the policyholder instead of a requirement ². After the House vote, the bill went to the Senate, where it was referred to the Rules Committee ³. Earlier, it cleared both of its House committees, Insurance & Banking and Commerce, by votes of 17 to 0 ².

How the Citizens DOAH Program Works Today

Since 2023, Florida law has let Citizens force policyholders into binding DOAH arbitration of claim disputes, whether or not the policyholder agrees ². Starting October 1, 2023, Citizens was approved to add an endorsement titled “Alternative Dispute Resolution Division of Administrative Hearings” to all new and renewal non-commercial policies ². Because of its quasi-governmental status, Citizens is the only insurer allowed to arbitrate before DOAH ². Before 2023, Citizens disputes that were not resolved through informal negotiation, Department of Financial Services mediation or demand appraisal ended up as lawsuits in circuit court ².

Private insurers work under different rules. A Florida property policy from any insurer other than Citizens may require mandatory binding arbitration only if the requirement appears in a separate endorsement, the premium reflects a credit for accepting it, the policyholder signs a form explaining the rights given up (including the right to a jury trial), the endorsement commits the insurer to the statutory mediation provisions, and the insurer offers an alternative without mandatory arbitration ².

The program has real scale. In December 2024, Citizens and DOAH renewed their contract for $19.3 million to fund arbitration through 2027, enough for up to 320 claims per month ². As of October 2025, DOAH had 12 full-time administrative law judges working only on Citizens disputes ².

What the Numbers Show

According to the House staff analysis, Citizens referred 1,662 cases to DOAH in 2025 as of October 14, and 1,204 had been fully resolved ². About 80 percent were resolved by voluntary settlement, including 49 percent in which the insured accepted a nominal amount of $500 or less ². Citizens reports an average resolution time of 93 days at DOAH, compared with 618 days in state court ². The analysis also cites news reports that Citizens won more than 90 percent of cases that reached a final DOAH hearing, compared with about 55 percent of traditional circuit court trials ².

The program has also drawn litigation. A Thirteenth Circuit judge temporarily halted DOAH arbitration on August 1, 2025, and that case was voluntarily dismissed in December 2025 ². In November 2025, a Second Circuit judge ordered DOAH to resume more than 400 pending Citizens cases, and that order is on appeal to the First District Court of Appeal ². Two class actions challenging the endorsement were also pending ².

What HB 863 Would Change

According to the staff analysis, the bill would:

• End mandatory DOAH arbitration. Citizens could no longer require binding arbitration before DOAH without the policyholder’s consent ².
• Make it an election. Citizens could adopt policy forms that let the insured accept or decline DOAH arbitration when the policy is issued or renewed, and the choice could not be changed during the policy term ².
• Require a bold disclosure. The notice must appear in at least 12-point bold type immediately before the policyholder’s signature, with “accept” and “decline” boxes ².
• Repeal the contracting provision. The bill would strike the statutory language that lets Citizens enter into a contract with DOAH for handling claim disputes ².

The bill would take effect July 1, 2026 ². Staff noted a possible fiscal impact on circuit courts if policyholders decline arbitration ².

Why It Matters for Claim Resolution

If HB 863 becomes law, every Citizens policyholder who declines arbitration would keep the court route that existed before 2023, along with DFS mediation and appraisal ². That would likely shift more Citizens disputes back toward negotiated settlement during litigation, where the timing of mediation and the quality of each side’s damages evidence carry more weight. The DOAH figures also show how often these disputes settle, and for how little, when one forum is mandatory ². Adjusters, policyholder counsel and defense counsel should watch the Senate, since its Rules Committee will decide whether the House’s approach goes any further ³.

Counsel and adjusters looking for a certified mediator for a property insurance dispute can check Tony Roca’s live availability and book a mediation by Zoom statewide.