Vero Beach, Fla. — A new investigative report has shed light on significant concerns regarding Citizens Property Insurance and its controversial arbitration process, highlighting the direct impact on Vero Beach residents and the early warnings issued by a local state lawmaker.
Recent findings reveal that Vero Beach State Senator Erin Grall raised serious questions regarding the constitutionality of the insurer’s arbitration mandate long before it was fully implemented. These concerns are now resonating with local homeowners who find themselves locked out of traditional court proceedings following property damage claims.
The controversy centers on a policy change enacted by Citizens Property Insurance in February 2023. The state-backed insurer added an arbitration clause that effectively strips policyholders of their right to a jury trial in dispute cases. Instead, these disputes are funneled into a private process decided by a single administrative law judge—judges who, according to contract records, are funded by Citizens itself.
Local Vero Beach residents Gloria and Jason Nitch recently experienced this system firsthand after filing a claim for damages caused by Hurricane Milton. Like many policyholders, the Nitches were unaware of the clause until they attempted to dispute their claim.
“And we can’t win. How you supposed to win? We didn’t know when we signed up,” said Jason Nitch, describing the frustration of being forced before a single judge rather than a jury of peers.
The concerns echoed by the Nitch family were anticipated by Senator Grall nearly two years ago. According to emails obtained via public records requests, Senator Grall contacted Citizens’ director of legislative and cabinet affairs on April 26, 2023. In her correspondence, she questioned whether the insurer had the statutory authority to enforce arbitration and whether the move violated policyholders’ constitutional right of access to the courts. She also raised concerns about potential exposure to additional attorney fees.
The investigation into the outcomes of these arbitration hearings paints a stark picture for homeowners. A review of cases between May 2024 and May 2025 showed that in instances where a final hearing was reached, judges ruled in favor of Citizens 99% of the time.
Legal experts have expressed shock at these statistics, with several attorneys questioning the fairness and constitutionality of a system where the adjudicating judges are paid through a contract between Citizens and the state’s Division of Administrative Hearings (DOAH). While Citizens funds the salaries—amounting to approximately $250,000 annually—the agreement stipulates that the insurer cannot select specific judges or set individual pay rates.
In response to Senator Grall’s 2023 inquiries, Ricky Polston, the then-chief legal officer for Citizens, argued that the “constitutional right to courts” did not apply to Citizens policyholders. His justification was that the company was created after Florida’s 1968 Declaration of Rights. Citizens has previously defended the arbitration model by citing faster resolutions and reduced costs for taxpayers.
While a Hillsborough County Circuit judge temporarily halted these arbitration cases due to constitutional concerns, a recent ruling by a Leon County Judge has allowed the process to resume. However, the debate is far from over, as an appellate court is currently deliberating on the ultimate constitutionality of the system.
For residents in Vero Beach and across Indian River County, the situation remains precarious. Homeowners insured by Citizens are advised to review their policies carefully to understand their rights regarding dispute resolution.
Key Takeaways for Local Homeowners:
