Florida landlord says $100K vandalism insurance claim denied despite coverage. And new state law is hampering his fight

A nonmigratory of Spring Hill, Florida, is grappling with a state-backed insurer aft his security assertion for astir six figures was denied.

Tom Luby told WFTS Tampa Bay 28 that Citizens Insurance doubly denied his astir $100,000 vandalism assertion connected a rental spot helium owns. According to WFTS, the insurer said the extended harm was an “incomplete remodel” of the location by the tenant, and not vandalism (1).

The spot harm includes stolen and destroyed appliances, torn-up flooors and debris scattered indoors and out.

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But nether Florida’s security betterment laws, Luby can’t instrumentality the security institution to court. Because his assertion has been denied doubly by the company, Luby says, helium is present being forced into mediation. He besides said that helium had taken his lawsuit to 3 antithetic attorneys, and they each turned his lawsuit down

“They don’t privation to instrumentality it, due to the fact that you can’t win,” Luby said. “There's thing I tin do.”

Critics are sounding the alarm connected the caller mediation process, which sees lawsuits against the insurer routed to arbitration done the Florida Division of Administrative Hearings (DOAH), arsenic opposed to being heard successful Florida’s circuit courts.

According to a caller ProPublica investigation, lawmakers and Citizens said this change, passed successful 2023, would velocity up hearings and prevention wealth (2). The study notes that “some DOAH judges person denied motions requesting that they disclose immoderate imaginable conflicts they mightiness person arsenic arbitrators.”

According to the WFTS, Miami-based lawyer Anthony Lopez, who represents Luby successful the mediation, questioned the neutrality of the DOAH judges.

“The neutral arbitrators, the judges successful DOAH, are fundamentally hand-picked by Citizens. A batch of them are erstwhile defence lawyers that represented security companies,” Lopez said.

The ProPublica study recovered successful the much than 1,500 disputes that Citizens has taken to mandatory arbitration, it won much than 90% of the last hearings. By comparison, the insurer won 55% of the clip erstwhile cases went to circuit tribunal trials, implicit the past 5 years.

The probe besides presented a disconcerting trend: homeowners who effort and driblet their cases are incapable to bash so. The rules of the DOAH are specified that a lawsuit cannot beryllium dropped unless some parties agree. According to ProPublica, Citizens “routinely pursues fees and costs against individuals who bash not retreat their assertion aboriginal successful the DOAH process.” An lawyer interviewed successful the study characterizes the actions arsenic “vindictive.”