Are you a homeowner in Florida? You may have seen a new endorsement on your homeowner’s insurance policy called the Mandatory Mediation Arbitration Agreement. This addition to your policy offers an alternative to traditional litigation when resolving disputes between you and your insurance company and can help reduce your overall annual premium.
Why was the MMAA endorsement added to Florida homeowners’ insurance policies?
The MMAA Endorsement in Florida homeowner’s insurance policies addresses the concern about the time and cost associated with traditional litigation. In many cases, disputes between homeowners and insurance carriers can take years to resolve through the court system, and the costs associated with litigation can be substantial. The intention is to provide a faster, less expensive alternative to traditional litigation.
What are the benefits of a Mandatory Mediation Arbitration Agreement?
The Mandatory Mediation Arbitration Endorsement offers homeowners and insurance companies a faster and more cost-effective way to resolve disputes. Mediation and arbitration are less adversarial than traditional litigation and provide a more amicable resolution. Adding this endorsement to your policy can reduce your annual premium by adding it as a discount to your coverage.
What are the drawbacks of a Mandatory Mediation Arbitration Agreement?
The Mandatory Mediation Arbitration Agreement may limit a homeowner’s access to the court system. By signing this agreement, homeowners are waiving their right to a trial by jury and are instead agreeing to resolve disputes through mediation or arbitration. The decision made in arbitration is typically final and without appeal. This process can also seem confusing to homeowners since they may not understand the complex processes without legal help.
In conclusion, this endorsement of Florida homeowner’s insurance dwelling policies helps reduce your premium and is a great way to resolve disputes with your insurance carrier faster and more affordably. It provides an alternative to taking your case to court. If you have any questions or concerns about this new endorsement, don’t hesitate to speak with our team about your policy.