In two recent rulings, the Florida Supreme Court has upheld the use of arbitration clauses in insurance contracts. This is a major victory for insurers, who have long pushed for such clauses as a way to reduce costs and speed up the claims process. These rulings are likely to lead to more insurers requiring arbitration in disputes over claims.
This means that consumers who have a dispute with their insurer may not be able to take the company to court. Instead, they will have to go through arbitration, which is often seen as a less favorable process for the consumer.
Thankfully, Liberty Adjusters can help! We protect your best interest throughout your insurance claim, ensuring you get the full amount of money you deserve to repair your home. Questions? Give us a call today!
What is Arbitration, & Why Would an Insurer Require it?
When we think of traditional legal disputes, we assume they are always seen in court; this is called litigation. In litigation, a judge and jury decide who wins.
Arbitration, however, is a way to settle a legal dispute without going to court. In arbitration, a neutral third-party listen to both sides of the case and makes a decision. Despite this not being heard in a traditional court, this decision is legally binding, meaning that both parties must abide by it.
So Why Would an Insurer Want You to Use Arbitration Instead of Going to Court?
Simply put, arbitration is cheaper and faster than going to court. Insurance companies are only looking out for their bottom line, and arbitration helps them out with that.
To make matters worse, insurance companies can choose the arbitrator, who may be more likely to rule in their favor. Imagine a defendant getting to choose their own judge!
Finally, and perhaps the worst reason of them all, the decisions made in arbitration are typically confidential, which means that the insurance company's bad practices are less likely to be exposed.
How Is This Legal?
The Federal Arbitration Act was passed in 1925 because legislators believed that arbitration was a faster, more efficient way to settle disputes than going to court. They also believed that it was a more fair and equitable way to settle disputes, as both parties would have an equal opportunity to present their case.
In today's world, a lone consumer going up against a powerful insurance company doesn't usually work out fairly.
What This All Means for You
For these reasons, you must have an advocate on your side who knows how to navigate the arbitration process, fighting for your best interests. That's where Liberty Adjusters comes in! We have experience dealing with insurance companies and their tricks, and we will make sure you get the money you deserve to repair your home.
Liberty Adjusters has your back, and we'll make sure you get the full settlement you deserve. Give us a call today!