House Bill 459 amends Section 627.7015 of the Florida Statutes to implement a mandatory procedure for resolving disputed property insurance claims, replacing the previous nonadversarial alternative dispute resolution process. The bill requires insurers to inform policyholders about this new procedure at the time of policy issuance and renewal, and mandates the Department of Financial Services to create a consumer information pamphlet. It allows either party to file a petition with the Division of Administrative Hearings, detailing the requirements for the petition and the insurer's response, while also outlining the responsibilities regarding costs associated with the resolution process. The definition of "claim" is revised to clarify the types of disputes covered, specifically excluding those involving suspected fraud or where the insurer has determined there is no coverage.

Additionally, the bill repeals several existing statutes related to appraisal clauses and mediation in property insurance contracts, streamlining the claims process. It specifies that an administrative law judge will review petitions and can dismiss those lacking required information without a hearing. Insurers must respond to petitions within a specified timeframe, and the judge is required to make a final determination on the total coverage amount within 180 days. The bill also modifies the tolling of requirements for insurers during proceedings, replaces "mediation" with "proceedings" to cover a broader range of dispute resolution methods, and updates the process for sinkhole insurance claims to ensure policyholders are informed of their rights. These changes are set to take effect on July 1, 2026.

Statutes affected:
H 459 Filed: 627.7015, 627.351, 627.70131, 627.7074