Florida insurance denied a $100K vandalism claim — what Canadian snowbirds should know before buying or renting out U.S. property

Tom Luby of Spring Hill told WFTS Tampa Bay 28 that Citizens Insurance denied his vandalism claim worth nearly US$100,000 (C$136,000) after a tenant left his rental home with extensive damage and missing appliances. According to WFTS, the company argued the destruction resembled an “incomplete remodel,” not vandalism (1).

The photos of the home show torn-up floors and walls, missing fixtures, discarded appliances and debris throughout the property. But the denial wasn’t the only shock: under Florida’s current insurance reform framework, Luby was unable to pursue his dispute in court.

Once the insurer denied the claim twice, the dispute was pushed into mandatory mediation instead of legal avenues.

Luby said he took the case to three different lawyers — and all declined to take it on under the current dispute process.

“They don’t want to take it, because you can’t win,” Luby said. “There’s nothing I can do.”

For Canadian snowbirds who rely on Florida property for rental income or seasonal use, cases like this highlight why understanding insurance rules in the U.S. — and in Florida, specifically — is crucial.

Florida’s insurance reform law makes disputes harder to win — for now

Under Florida’s current rules — which are facing legal challenges — many lawsuits against Citizens, the state-backed insurer, are being routed to arbitration through the Florida Division of Administrative Hearings (DOAH) rather than the state’s courts. Lawmakers argued this would reduce court backlogs, according to investigative journalist newsroom ProPublica (2). But critics say the system heavily favours Citizens.

The ProPublica report found:

• Citizens won over 90% of cases heard through the mandatory arbitration
• Citizens won only 55% of cases in the traditional circuit court over the past five years

The investigation also found homeowners are sometimes unable to withdraw their claims once they enter arbitration — and may face fees if they try.

Luby’s attorney, Anthony Lopez, questioned the neutrality of the DOAH judges, noting many had ties to insurance defense firms.

“The neutral arbitrators, the judges in DOAH, are basically hand-picked by Citizens,” Lopez said. “A lot of them are former defense lawyers that represented insurance companies.”

Citizens CEO Tim Cerio defended the mediation process in an interview with WFTS, saying a six-step review occurs before arbitration, and that 37% of cases settle before a final hearing.

After the segment aired, Citizens agreed to review Luby’s case again.

Why snowbirds should pay attention

More than 500,000 Canadians spend part of the year in Florida, and thousands more own rental or vacation property there (3). Many assume insurance works the same way in the Sunshine State as it does in Canada — but key differences can expose them to major financial losses:

• Vandalism vs. malicious mischief: According to Florida insurance standards, vandalism coverage can be suspended if the property is vacant for as little as 30 days (4)
• Tenant-caused damage may be excluded (5)
• Stricter vacancy rules mean that Florida insurers often require a “caretaker” to check the property weekly to maintain coverage for seasonal use (6)
• Flood and hurricane damage protection often requires separate policies (7)
• Florida has historically faced almost 80% of all homeowners' insurance lawsuits in the U.S., driving the insurance reforms seen in 2023 and 2024 (8)

Florida’s market volatility — driven by severe weather and insurer bankruptcies — pushed homeowners toward Citizens as the state-backed insurer of last resort. Until recently, Citizens was one of the largest insurers in Florida until legislative reforms caused its policy count to significantly drop (9).

What snowbirds can do if their U.S. home insurance claim is denied

If you’re a snowbird and have had something similar happen with your coverage for your home-away-from-home, here are some practical steps that can make the difference:

Review your policy for definitions and exclusions. U.S. policies often carve out issues similar to those Leby had with his tenants, including:

• Tenant damage versus vandalism
• Remodelling exclusions
• Vacancy clauses
• Mold or water intrusion
• Hurricane deductible rules
• Flood coverage — usually requires a policy backed by the Federal Emergency Management Agency (FEMA)

Snowbirds should specifically ask whether seasonal, short-term or tenant usage changes their coverage.

If your property fell victim to vandalism, rowdy tenants or inclement weather, before making repairs, make sure to document and collect all pieces of evidence that can be used in your favour, including:

• Photos
• Receipts
• Police reports in the case of vandalism
• Contractor assessments
• Correspondence with tenants

File your claims within the policy’s stated deadlines

Most insurance companies have a time limit for filing a home insurance claim. These can range anywhere between 30 to 90 days, and up to one year (10) (11). Be sure you know your deadline to file a claim.

Consider hiring a licensed public adjuster

A public adjuster represents the homeowner — not the insurer — during the claims process. Fees are regulated in Florida and often capped at 10% for Citizens-related declared emergency claims, such as hurricanes (12).

When hiring a public adjuster, verify their license through Florida’s insurance department. Otherwise, search the National Association of Public Insurance Adjusters for the most qualified adjuster to meet your needs.