The Ultimate Guide to Insurance Appraisal in Florida

Florida insurance appraisal quick reference — key facts at a glance under the common-law framework as modified by SB 2-A (eff. Dec. 16, 2022)

Legal Authority for Insurance Appraisal in Florida

Unlike Texas — which, beginning January 1, 2026, requires a statutory appraisal provision in personal auto and residential property policies under Chapter 1813 of the Texas Insurance Code (SB 458, 89th Legislature, signed June 2025) — Florida's insurance appraisal framework is primarily governed by the appraisal clause in the insurance policy itself and by common-law principles developed through decades of litigation. There is no single Florida statute that mandates or comprehensively defines the appraisal process. Instead, the standard appraisal clause found in many property insurance policies — whether homeowners, dwelling, or commercial — provides the mechanism, though SB 2-A introduced several statutory provisions that regulate aspects of appraisal use. The standard clause tracks ISO (Insurance Services Office) policy forms, which serve as the template for the vast majority of policies issued in the state.

Standard appraisal clause language in Florida property insurance policies, with key terms highlighted. This is the ISO HO 00 03 form language.* Some Florida carriers — particularly Citizens Property Insurance and domestic specialty insurers — use modified clauses with different umpire selection procedures or scope limitations. The specific policy language controls.
* Always check the actual policy language. Some carriers use non-ISO forms with different umpire selection procedures, scope limitations, or waiver provisions. The clause reproduced here is representative but not universal.

Florida courts have generally construed the clause's scope as limited to the amount of loss. Appraisal answers one question: how much is the damage worth? It does not determine whether the loss is covered, does not interpret policy language, and does not resolve disputes about the carrier's claims handling. Those questions remain with the courts.

SB 2-A: How the 2022 Reform Reshaped the Landscape Around Appraisal

While SB 2-A (signed December 16, 2022) did not change the appraisal clause itself, it fundamentally altered the legal and economic landscape surrounding appraisal in Florida. Five changes matter most.

First, one-way attorney fees are gone. SB 2-A repealed the provisions of Fla. Stat. §§ 627.428 and 626.9373 that previously entitled policyholders to recover attorney fees when they obtained a favorable judgment against an insurer. For policies issued or renewed after December 16, 2022, each party bears its own legal costs. This removed the economic asymmetry that had made property insurance litigation financially viable for many policyholders — and shifted the cost-benefit calculus toward appraisal as a resolution mechanism, since appraisal avoids the fee exposure that now runs both directions under the offer-of-judgment statute (§ 768.79), which requires a formal offer and a less favorable result at trial to trigger fee-shifting.

Second, bad faith requires an adverse court judgment. Under amended Fla. Stat. § 624.1551 (enacted by SB 2-A; § 624.155 was further amended by HB 837 in 2023, adding subsection (6) addressing interpleader), a policyholder may not bring a bad faith action against an insurer until a court of law has rendered a final judgment establishing the insurer's breach. Payment of an appraisal award does not constitute an adverse adjudication. The difference between an insurer's appraiser's final estimate and the appraisal award may be used as evidence of bad faith in a subsequent proceeding — but the appraisal award alone does not open that door.

Third, assignment of benefits is banned. SB 2-A prohibits the assignment of any post-loss insurance benefits under residential or commercial property insurance policies issued on or after January 1, 2023. Any attempt to assign benefits is void, invalid, and unenforceable.

Fourth, mandatory binding arbitration is now an option. SB 2-A created Fla. Stat. § 627.70154, which allows insurers to include mandatory binding arbitration endorsements — provided the endorsement offers a premium discount, the policyholder signs an election form acknowledging the rights waived (including the right to a jury trial), mediation under § 627.7015 occurs first, and the insurer also offers a policy without the endorsement. This is separate from and an alternative to appraisal.

Fifth, claim filing deadlines shortened. New or reopened claims must be reported within one year of the date of loss (previously two years). Supplemental claims must be filed within 18 months (previously three years). Insurers must acknowledge claims within 7 days (previously 14) and make coverage determinations within 60 days (previously 90). These are baseline requirements, subject to catastrophe tolling and other statutory extensions — practitioners should consult the specific tolling provisions under § 627.70132 for claims arising from declared emergencies.

Florida Office of Insurance Regulation (OIR)

The Florida Office of Insurance Regulation is the primary regulatory authority for insurance in Florida. OIR oversees rate filings, policy form approvals, market conduct examinations, and insurer solvency. Under SB 2-A, OIR gained enhanced authority over appraisal: the office may subject any authorized insurer to a market conduct examination after a hurricane and may issue an order prohibiting an insurer from invoking appraisal for up to two years upon finding a pattern or practice of willful unfair trade practice violations related to the insurer's use of appraisal. As of early 2026, OIR has not publicly exercised this suspension authority — the provision functions primarily as a deterrent rather than an actively enforced regulatory tool.

The Florida Department of Financial Services (DFS) is the separate agency that administers the mediation program under Fla. Stat. § 627.7015 and provides consumer assistance for insurance disputes. For a comprehensive breakdown of the mediation program — including carrier notice requirements, the consequences of noncompliance, and how mediation interacts with the appraisal process — see the dedicated Mediation Under Florida Law section below. The DFS Consumer Helpline is 1-877-693-5236 (1-877-MY-FL-CFO), available at myfloridacfo.com.

Florida Department of Financial Services — Division of Insurance Agent & Agency Services

The Florida Department of Financial Services (DFS) is a separate agency from OIR, housed under the Chief Financial Officer. Where OIR regulates insurance companies, DFS regulates the individuals and entities that sell, adjust, and service insurance. The Division of Insurance Agent & Agency Services licenses and oversees insurance agents, public adjusters, company adjusters, independent adjusters, and adjusting firms operating in Florida.

The Division operates through two bureaus. The Bureau of Licensing handles initial applications, renewals, continuing education requirements, and appointment processing for all insurance license types — including the public adjuster and independent adjuster licenses that are prerequisites for many professionals involved in the appraisal process. The Bureau of Investigation examines alleged violations of the Florida Insurance Code and Administrative Rules by licensees or unlicensed individuals operating without authorization. Suspected criminal violations are referred to the Division of Investigative and Forensic Services' Bureau of Insurance Fraud.

The Division's jurisdiction intersects with the appraisal process in several areas. Public adjusters working in claims must hold a valid Florida public adjuster license. Following the 2023 legislative session (Ch. 2023-130, Laws of Florida), public adjusters are subject to tighter contract requirements, mandatory five-year record retention, and clarified definitions of what constitutes the practice of public adjusting. The Division also maintains the online Licensee Search tool, which allows any party to verify whether an adjuster, agent, or agency is properly licensed and in good standing.

Appraisal vs. Arbitration in Florida

Florida law recognizes a clear distinction between appraisal and arbitration. Florida courts have consistently held that appraisal is not arbitration and is therefore not governed by the Florida Arbitration Code (Fla. Stat. Chapter 682) or the Federal Arbitration Act (9 U.S.C. §§ 1–16). This distinction has significant procedural implications — most critically, that appraisal awards cannot be "confirmed" under the Arbitration Code. A party seeking to enforce an unpaid appraisal award must file a breach of contract action, not a petition to confirm an arbitration award. Filing the wrong action delays enforcement and may result in dismissal. See State Farm Fla. Ins. Co. v. Gonzalez, 2011 WL 6057875 (Fla. 3d DCA 2011) (holding that a "petition to confirm appraisal award" is not an authorized pleading under Florida law; the proper remedy is a breach of contract complaint, after which the appraisal award's dollar value is binding if coverage is established).

This distinction became more practically important after SB 2-A authorized mandatory binding arbitration endorsements (§ 627.70154). Carriers can now offer policies that replace appraisal and litigation with binding arbitration — provided the endorsement meets strict consumer protection requirements. Florida practitioners now face a landscape where some policyholders have traditional appraisal clauses, others have mandatory arbitration endorsements, and the rules differ significantly for each.

Preclusive Effect of Appraisal Awards

Because appraisal is not arbitration and is not governed by the Florida Arbitration Code, the traditional doctrines of res judicata (claim preclusion) and collateral estoppel (issue preclusion) do not apply to appraisal awards in the same manner they apply to court judgments or confirmed arbitration awards. An appraisal award determines a single issue — the amount of loss — and does not adjudicate any cause of action. It cannot be "confirmed" into a judgment under Chapter 682. As a result, an appraisal award does not have the same preclusive effect as a final judgment.

That said, the award's determination of the amount of loss is binding on both parties as a contractual matter. Once an appraisal panel sets the amount of loss, neither side may relitigate that figure in subsequent proceedings — the court in a breach of contract action will treat the award as conclusive on the amount question, provided coverage is established. See State Farm Fla. Ins. Co. v. Gonzalez, 2011 WL 6057875 (Fla. 3d DCA 2011). What the award does not preclude is litigation over coverage, bad faith, unfair claims handling, or any other issue outside the scope of appraisal. The practical effect is that an appraisal award binds narrowly but firmly: it forecloses the amount dispute but leaves all other claims available. Practitioners should be aware that the informality of the appraisal process — no formal evidentiary record, no written findings of fact — may limit any argument for broader preclusive effect even where the parties might seek to invoke it.

One area that creates regular confusion: the binding nature of the appraisal award applies only to the amount question. Separate causes of action — bad faith under § 624.155, unfair claims handling, or violations of the prompt payment statutes — survive the appraisal. Payment of the award does not extinguish those claims. But under SB 2-A, the pathway to bad faith has narrowed: payment of an appraisal award alone does not constitute the "adverse adjudication" required before a bad faith suit can proceed.

Mediation Under Florida Law

Florida law establishes a separate, nonadversarial dispute resolution process for property insurance claims — distinct from both appraisal and litigation — under Fla. Stat. § 627.7015. The statute was enacted in 1993 and has been amended multiple times, most recently by SB 2-A (2022) and Ch. 2023-144. The Legislature described the program as "an informal, nonthreatening forum" designed to bring policyholders and insurers together for a mediated claims settlement conference as an alternative to the contractual appraisal process or court proceedings.

Who Can Request Mediation — and When

Mediation may be requested by the policyholder (as a first-party claimant), a third-party assignee of policy benefits, or the insurer. However, an insurer is not required to participate in any mediation requested by a third-party assignee. If the policyholder requests it, participation by legal counsel is permitted. Mediation under § 627.7015 is also available to litigants referred to DFS by a county or circuit court.

The program is available for claims under personal lines and commercial residential policies — but it does not apply to non-residential commercial coverages, private passenger motor vehicle insurance coverages, or disputes relating to liability coverages in policies of property insurance. Mediation is available before commencing the appraisal process or before commencing litigation. It does not prevent or delay the policyholder's right to demand appraisal.

A claim becomes eligible for mediation after the insurer complies with its claim determination obligations under § 627.70131(7) or elects to reinspect under § 627.70152(4)(a)3. If the insurer has not complied with § 627.70131(7) or elected to reinspect within 90 days after notice of the loss, the insurer may not require mediation.

Insurer Notice Requirement

Under § 627.7015(2), insurers are required to notify policyholders of their right to participate in the DFS mediation program. As amended by HB 301 (effective July 1, 2019), this notice may be provided either at the time of issuance and renewal of a policy or at the time a first-party claim within the scope of the section is filed. Prior to HB 301, the statute required notice only at the time a claim was filed.

The Florida Administrative Code (Rule 69J-166.002 for commercial residential; Rule 69J-166.031 for personal lines) specifies detailed requirements for the notice. It must be in writing, legible, conspicuous, printed in at least 12-point type, and printed in typeface no smaller than any other text in the notice. The notice must include specific language informing the policyholder of their right to attend a mediation conference, instructions on how to request mediation through DFS, and the DFS contact information including the Consumer Helpline number.

Noncompliance with this notification requirement triggers a specific statutory consequence under § 627.7015(7): if the insurer fails to notify the policyholder of the mediation right, the policyholder is not required to submit to or participate in any contractual loss appraisal process as a precondition to filing a breach of contract action against the insurer. The effect is that the insurer cannot compel appraisal before litigation. The Third DCA applied this provision in Kennedy v. First Protective, 271 So. 3d 106 (Fla. 3d DCA 2019) and Universal Prop. & Casualty Ins. Co. v. Colosimo, 61 So. 3d 1241 (Fla. 3d DCA 2011).

Effect of Insurer-Requested Mediation

Section 627.7015(7) also addresses the scenario where the insurer requests mediation. If the insurer initiates the mediation and the results are rejected by either party, the policyholder is likewise not required to participate in appraisal as a precondition to litigation. The statute applies the same appraisal-bypass consequence regardless of whether the triggering event is a notice failure or an insurer-initiated mediation that does not result in settlement.

How the DFS Mediation Process Works

Either party initiates mediation by submitting a request to the DFS Mediation Section (Bureau of Education, Advocacy, and Research) at 200 East Gaines Street, Tallahassee, FL 32399-4212, or by calling 1-877-693-5236. Once a request is received, the parties have 21 days to resolve the dispute before DFS assigns a mediator. The mediator is selected by DFS and must meet qualifications under § 627.745 and the Florida Rules for Certified and Court-Appointed Mediators. Either party may disqualify a mediator for good cause.

The insurer bears all costs of the mediation conference. Cost structures differ between personal lines and commercial residential claims. For commercial residential mediations, the total cost is capped at $5,000 — with the mediator's fee at $300 per hour (not to exceed $4,800) and a $200 administrative fee. For personal lines mediations, costs are governed by the DFS fee schedule established under FAC Rule 69J-166.031, with different caps that are generally lower than the commercial residential schedule. If the insurer fails to appear, or sends a representative who lacks authority to settle the full value of the claim, the insurer must pay the policyholder's actual expenses for attending and will incur an additional rescheduling fee. An insurer that fails to appear with sufficient frequency may be subject to penalty, including suspension or revocation under § 624.4211.

Mediation Is Nonbinding — With One Exception

Under § 627.7015(6), mediation is nonbinding. However, if a written settlement is reached, the policyholder has three business days to rescind the settlement — unless the policyholder has already cashed or deposited any check or draft disbursed as a result of the mediation. If the settlement is not rescinded within three business days, it becomes binding and acts as a release of all specific claims presented at that mediation conference. All statements and documents produced at mediation are deemed settlement negotiations under § 90.408 and are inadmissible in subsequent proceedings.

Claims Excluded from Mediation

The statute excludes certain disputes from the mediation program entirely under § 627.7015(9). Mediation is not available for disputes where the insurer has a reasonable basis to suspect fraud, where there is no coverage under the policy based on agreed-upon facts, where the insurer has a reasonable basis to believe the policyholder made an intentional material misrepresentation, where the amount in controversy is less than $500 (unless the parties agree), or where the loss does not comply with the SB 2-A claim filing deadlines under § 627.70132.

Can Appraisers Determine Causation?

The Florida Supreme Court addressed this directly in the landmark decision Johnson v. Nationwide Mutual Insurance Company, 828 So. 2d 1021 (Fla. 2002). The case consolidated two conflicting DCA opinions — one involving alleged sinkhole damage, the other a blasting dispute — to resolve whether causation is a coverage question or an amount-of-loss question. The Court held that causation is a coverage question for the courts when an insurer wholly denies that there is a covered loss. But the Court recognized that "appraisal necessarily includes some causation element" when determining the amount of covered loss.

The distinction turns on the insurer's position. If the insurer admits that some covered loss occurred but disputes the amount — for example, "wind caused $50,000 in damage, not $150,000" — causation is intertwined with the amount of loss, and appraisers may consider it. If the insurer denies that any covered loss occurred — "the damage was caused entirely by excluded flood, not covered wind" — causation is a pure coverage question for the courts, and appraisal is not appropriate until coverage is determined.

Courts since Johnson generally allow appraisers to allocate damage between covered and excluded causes — separating wind from pre-existing wear, hail from settling. What appraisers still cannot do is decide whether a given cause is covered under the policy as a matter of legal interpretation. Florida courts have generally held that appraisal and coverage litigation can proceed simultaneously — staying appraisal to resolve coverage first is not required when the insurer has not wholly denied that any covered loss occurred.

Key Case Law

Four decisions have done the most to shape how appraisal works in Florida. They come up in nearly every contested appraisal.

Key milestones in Florida insurance appraisal law — from the foundational Johnson causation rule through the Parrish disqualification standard

The Florida Insurance Appraisal Process

The Florida appraisal process follows a defined sequence — from the initial written demand through a binding award. Some steps are governed by the policy's appraisal clause; others by common-law standards developed in Florida courts. Here is how a typical appraisal moves through the system.

The Florida insurance appraisal process — 6 steps from written demand to binding award

Frequently Asked Questions