Citizens Property Insurance Corporation has introduced a new endorsement called Alternative Dispute Resolution (ADR) of Administrative Hearings. While this may sound like a convenient option for resolving disputed insurance claims, it raises significant concerns for policyholders. Here’s why this “free” offer may come at a high cost.

Is ADR Good for Policyholders or Good for Citizens Insurance Corporation?

The answer depends on how much trust you place in the insurer’s motives. When an insurance carrier offers something for free, policyholders should approach it with caution. Insurers rarely give anything away without a benefit to themselves. Citizens’ ADR endorsement shifts the power away from property damage experts (appraisers) and places it in the hands of attorneys and judicial representatives, who may lack the necessary expertise in assessing property damages.

You can view a sample of the Policy Endorsement here

How Does the Citizen’s ADR Work?

• Binding Arbitration with No Appeal
  Once you agree to the Citizens ADR process, decisions made by the arbitrators are final and binding, leaving no room to appeal. This means you waive your right to challenge any mistakes, undervaluation, or suppression of your claim—a move no policyholder should make lightly.
• Hiring Your Own Attorney
  While you can hire your own attorney as an arbitrator, this comes with its challenges. Unless your attorney wins the dispute, their fees will not be reimbursed, leaving you to cover their costs out of pocket. Moreover, the fees allowed by this process may be too low to attract experienced attorneys, limiting your ability to secure qualified representation.
• No On-Site Inspection
  The entire process is conducted remotely, often over Zoom. Arbitrators and judges will not visit your property to physically inspect the damage. This approach is akin to a doctor diagnosing a patient without a physical exam—highly questionable and prone to errors.

Who Benefits from This Process?

1. Unqualified Decision-Makers
   Arbitrators and judicial law judges may lack the field experience required to accurately assess property damage. Unlike appraisers with expertise in property claims, attorneys and judges might not fully understand the nuances of property repairs and rebuilding costs.
2. Control by Citizens
   Citizens determines who hires the arbitrators and judges, who pays their fees, and how much they are compensated. This creates a potential conflict of interest, as the very individuals deciding your claim are paid through a process controlled by the insurer.
3. Delays in Resolution
   The ADR process can take 75 to 100 days after notification. For policyholders with unlivable homes or urgent repairs, this lengthy delay can cause additional hardship. Meanwhile, the question remains: Who decided this timeline, and how does it benefit policyholders?
4. No Control for Policyholders
   Once you opt for ADR, you relinquish control over how your dispute is handled. You are effectively entrusting your claim to a process designed by the insurance company, with little transparency or recourse.

Key Questions to Consider

• What qualifications do the arbitrators and judicial law judges possess?
• Who hires and pays these decision-makers?
• How will additional damage from a second event (e.g., another storm) be handled during the dispute process?
• Does allowing Citizens’ chosen arbitrators to resolve your claim truly serve your best interests?

Why ADR May Not Be the Best Option

Unlike traditional dispute resolution through appraisal, which involves property damage experts, the new Citizen’s ADR process relies heavily on attorneys and remote decisions. These factors make the process less effective, less fair, and less likely to yield favorable outcomes for policyholders.

This is not just a matter of convenience—it’s about ensuring that your claim is handled by qualified professionals who have the experience and independence to assess your damages accurately and fairly.

Beware of the Wolf in Sheep’s Clothing

Citizens’ ADR endorsement may seem like an attractive, no-cost solution for disputed claims, but the potential pitfalls are significant. By giving up the right to appeal and allowing unqualified arbitrators to decide your claim remotely, policyholders stand to lose much more than they gain.

If you have a disputed claim with Citizens Property Insurance Corporation, don’t fall for the ADR scheme. Contact Florida Insurance Claim Appraisal today at 1-888-554-5012 for a no-obligation consultation. Our experienced insurance appraisers will help you understand your options and ensure your claim is handled fairly and professionally. Protect your rights—get the representation you deserve.