Florida homeowners are challenging Citizens Insurance’s use of an administrative hearing process to resolve coverage disputes, claiming the system is unfair to policyholders.

Nicholle Kvocka of Ruskin had her fire-damage claim from Hurricane Helene denied by Citizens Insurance, despite engineers confirming the damage. Her case was sent to Florida’s Division of Administrative Hearings (DOAH), where the ruling went against her.

Under a 2023 law, Citizens can direct disputes into the administrative process, where judges and staff who hear the cases are funded by the insurer itself. Attorney Christopher Fauntleroy, representing multiple Citizens policyholders, said homeowners rarely prevail in DOAH, and losing homeowners may be responsible for Citizens’ legal fees.

Citizens Insurance and state officials have defended the DOAH process as a method to streamline disputes and reduce costs, with proponents arguing administrative hearings can resolve claims faster than traditional courts.

A judicial stay currently prevents Citizens from sending more disputes to DOAH while a final ruling is pending. A federal investigation requested by U.S. Rep. Frost is also pending. The outcome will determine how state-run insurance disputes are handled in Florida.

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