What Is The Florida Insurance Guaranty Association, And What Do They Do For Florida Homeowners?
When a homeowner’s insurance company goes defunct or insolvent, the Florida Insurance Guaranty Association exists to step in and help cover outstanding claims. This group, also known as “FIGA”, is a state-run, non-profit organization that is authorized by Florida statute to handle unique situations in which an insurer cannot meet their financial obligations to Florida customers.
While this might seem like an unusual set of circumstances, the home insurance market in Florida has been incredibly volatile in 2022. Over a dozen insurers have either closed up shop or left the Florida market in 2022, with the United Property & Casualty Insurance Company being the latest to leave Florida’s troubled home insurance market.
What Does the Florida Insurance Guaranty Association Offer Homeowners?
FIGA is composed of Florida’s licensed direct writers of property or casualty insurance. Insurers with certificates of authority from Florida’s Office of Insurance Regulation are eligible for membership within the Florida Insurance Guaranty Association. When any of these eligible insurance companies face bankruptcy, FIGA steps in to help cover costs for affected homeowners.
Where does FIGA get the funding to perform this task? FIGA’s funding comes from 3 main sources:
- Funds from the liquidated assets of a bankrupt insurer (also known as estate distributions);
- Investment income;
- Assessments levied on insurers based on the total value of policies they have underwritten.
Payments through this program are made for covered losses to insureds, as long as claims meet criteria set under FIGA law and the terms of a policy itself. Payments under FIGA can generally range from $100 to $300,000 (or more under certain exceptions). In most cases, however, if a home’s value or cost to repair exceeds the $300,000 covered through FIGA, the homeowner is responsible for the gap in costs not covered under the program.
When shopping for insurance coverage, it is more important than ever to research an insurance company’s financial background and track record. Given the current instability in Florida’s home insurance market, even reputable insurers are leaving the state or facing financial difficulty – leaving FIGA to step in and assist with coverage.
Our Florida Property Damage Attorneys at Bundza & Rodriguez, P.A., Are Here to Help When Your Insurer Has Left the State or Declared Insolvency
When a property owner signs up for home insurance, they do so for financial protection in the event of a damaging event or natural disaster. The last thing on their minds would be their insurer going broke and leaving them without coverage. Unfortunately, a disturbing upward trend in insurer insolvencies has left thousands of homeowners wondering what’s next.
Whether your insurer has tried dropping you, has gone bankrupt, or faces other problems, the Daytona, Florida property damage insurance attorneys at Bundza & Rodriguez, P.A., will help you understand all available options. This includes the potential for recovery through FIGA after suffering a covered loss. If you have any questions, call our Daytona law offices today at 386-252-5170, or schedule a consultation with our Daytona Beach property damage attorneys online.