When disputes arise between policyholders and insurance companies, finding efficient and effective methods for resolution is crucial. In Florida, policyholders facing insurance claims disputes have several options for alternative dispute resolution (ADR), including mediation, binding arbitration, and non-binding arbitration. Each approach offers distinct benefits and considerations, so it's essential to understand the differences to make an informed decision. Below, our Florida insurance claim lawyer explains these options.


Process: In mediation, a neutral third party, called a mediator, facilitates communication between the parties to help them reach a mutually acceptable resolution. The mediator does not decide but assists the parties in exploring options and finding common ground.

Control: The parties have control over the outcome and can decide whether to accept a proposed resolution. The mediator's role is to facilitate dialogue and help the parties reach an agreement voluntarily.

Confidentiality: Mediation proceedings are confidential, meaning that discussions, negotiations, and any documents shared during mediation cannot be used as evidence in court if the mediation does not result in a settlement.

Outcome: While the parties may reach a settlement agreement during mediation, it is not binding unless both parties agree to make it so. If the parties cannot settle, they can pursue other dispute resolution methods, such as arbitration or litigation.

Can Florida Insurance Companies Require Participation in Mandatory Binding Arbitration?

Senate Bill 2A created Section 627.70154, Florida Statutes, which provides the conditions whereby an insurance company may require a policyholder to participate in mandatory binding arbitration for property insurance claim disputes.

For property insurance policies issued in Florida after December 2022, an insurance company may require that a policyholder participate in mandatory binding arbitration only if all the below conditions are met:

  • The mandatory binding arbitration requirements are attached to the property insurance policy in a separate endorsement.

  • The premium for the policy includes an actuarially sound credit or premium discount for the mandatory binding arbitration endorsement.

  • The policyholder signs a form electing to accept mandatory binding arbitration, which notifies the policyholder of the rights given up in exchange for the credit or premium discount, including, but not limited to, the right to a trial by jury.

  • The endorsement establishes that an insurer will comply with the mediation provisions outlined in s. 627.7015 before the initiation of arbitration; and

  • The insurer also offers the policyholder a policy that does not require that the policyholder participate in mandatory binding arbitration.

If the above conditions are not met, the insurance company cannot require a policyholder to participate in mandatory binding arbitration.

Choosing Between Mediation and Arbitration

Cost: Mediation is often less expensive than arbitration, as it typically requires fewer formal proceedings and less time.

Time: Mediation is generally faster than arbitration, focusing on resolving quickly through negotiation and compromise.

Outcome: Mediation allows for more creative and flexible solutions, as the parties control the outcome. Arbitration, conversely, results in a binding decision made by the arbitrator.

Complexity: Arbitration is more structured and formal than mediation, making it more suitable for complex disputes where a definitive decision is needed.


When deciding between mediation, binding arbitration, or non-binding arbitration in Florida insurance claims disputes, consider factors such as the case's complexity, the parties' willingness to cooperate, and the desired level of finality. Consulting with an experienced attorney specializing in insurance claims can provide invaluable guidance in selecting the most appropriate ADR method for your circumstances. Ultimately, the goal is to find a resolution method that promotes efficient and effective dispute resolution while preserving the parties' rights and interests.

Has Your Home Insurance Company Denied or Undervalued Your Property Damage Claim in Florida?

If your insurance company is dragging its feet regarding your property damage claim, you should speak with an experienced insurance claim lawyer as soon as possible. Please contact us online or call our Florida law office at 800.451.6786 to schedule your free consultation. We help Florida residents like you fight the big insurance companies who fail to abide by their policies. Remember, we work on a contingent basis, meaning you don't pay us anything until we win your case. 

K.C. Williams III
Managing Partner who has spent his entire career representing Florida insurance and personal injury claims.
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