CLAIMS GLOSSARY · FLORIDA & NEW JERSEY

Insurance Claim Mediation (Florida DFS Program)

Also called: DFS mediation, property insurance mediation, mediation program, residential property mediation

By Nelson Avila, Licensed Florida Public Adjuster (License G332385) · Florida Certified Contractor
Homeland Public Adjusters · Last reviewed: October 2026

Definition

Insurance claim mediation in Florida is a non-binding, state-run conference under §627.7015 where the policyholder and the insurer meet with a Department of Financial Services-approved mediator to try to settle a disputed personal lines or commercial residential property claim before appraisal or litigation. Either side can request it, the insurer pays the mediator, and a written settlement can be rescinded by the policyholder within three business days.

Full guide: Florida's DFS Mediation Program for Property Insurance Claims

Who can use it

The policyholder, a first-party claimant, an assignee of benefits, or the insurer may request mediation of a claim under a personal lines or commercial residential policy, before appraisal or a lawsuit. Commercial (non-residential) coverages, private passenger auto coverages and liability coverages are excluded, as are claims involving suspected fraud, claims where there is no coverage on agreed facts, and disputes under $500 unless both sides agree. The insurer need not mediate with a third-party assignee.

How it works

The request goes to the Department of Financial Services, which assigns a mediator and schedules a conference, usually within a few weeks.
The insurer must bear the cost of the conference. If the policyholder fails to appear, the policyholder pays for the rescheduled one; if the insurer fails to appear without good cause, it pays the policyholder’s actual expenses plus the rescheduled conference fee.
The insurer must send a representative with authority to settle.
Mediation is non-binding. A written settlement is binding unless the policyholder rescinds it within 3 business days; a settlement cannot be rescinded once a disbursement check for the disputed matters has been cashed or deposited.

The notice rule and the appraisal interplay

At policy issuance or renewal and again when a first-party claim is filed, the insurer must notify you of your right to mediation. Under §627.7015(7), if the insurer fails to give that notice (and does not comply with the related notice provisions of §627.70131), or if the insurer requested mediation and either party rejected the result, the policyholder is not required to submit to the policy’s appraisal clause before suing. If the insurer never told you about mediation, that is leverage.

When mediation makes sense

Mediation is fast, costs the policyholder nothing, and puts a decision-maker from the carrier in the room. It works best when the dispute is about scope or amount and both sides have estimates to compare; it works poorly when the carrier has denied coverage outright and intends to hold that position. Bring the public adjuster’s estimate, photos, the carrier’s estimate and a one-page summary of the differences. Many Florida claims settle at or shortly after mediation; those that do not go to appraisal or suit with the record already built. Florida DFS processed more than 27,000 mediation requests in 2023.

New Jersey

New Jersey has no state-run property claim mediation program. Disputes over amount go to appraisal under the policy; coverage disputes go to court, and the Department of Banking and Insurance accepts consumer complaints about claim handling under N.J.A.C. 11:2-17.7.

Frequently asked questions

Does mediation cost me anything?

No. Under §627.7015 the insurer bears the cost of the mediation conference. You pay only if you fail to appear and the conference must be rescheduled.

Is a mediation settlement final?

A written settlement is binding on the specific claims presented, but the policyholder may rescind it within 3 business days unless a check for the disputed matters has already been cashed or deposited.

Can my public adjuster attend mediation?

Yes. Your public adjuster can attend and present the claim with you; the mediator will expect each side to be able to explain its numbers.

Should I mediate or go straight to appraisal?

If the carrier admits coverage and the dispute is the number, mediation is a free first step and appraisal remains available afterward. If the carrier denied coverage, mediation may still move it, but appraisal cannot decide coverage, so the next step after a failed mediation is usually a demand letter or suit.

Related terms

Appraisal Clause and Umpire

The appraisal clause is a provision in most property policies that lets either the policyholder or the insurer demand appraisal when they disagree on the amount of a covered loss.

Read the definition ›

Policy Exclusions

A policy exclusion is a provision that takes a cause of loss, a type of property, or a situation out of coverage that the insuring agreement would otherwise provide.

Read the definition ›

Proof of Loss

A proof of loss is a sworn, signed statement from the policyholder setting out the date and cause of the loss, the property involved, the interest of the insured and others, other insurance, and the…

Read the definition ›

Supplemental Claim and Reopened Claim

A supplemental claim is a claim for additional loss or damage from the same peril the insurer has already adjusted, or for costs incurred while repairing under an open claim.

Read the definition ›

If this is your loss, call Homeland before you talk to the insurance company: Florida (305) 783-3777, New Jersey (732) 517-3777, 24 hours. A licensed public adjuster reviews the claim for free and calls you back right away. No Recovery, No Fee.

Sources

This article is for general information only and is not legal or insurance advice. Statutes, regulations and policy wording change, and how they apply depends on your own policy and the facts of your claim. Homeland Public Adjusters is a public adjusting firm, not a law firm.

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